Risk Management
In its latest policy paper, OpenAI urges policymakers to consider adjusting the tax system to address potential economic transformations brought by AI, including risks such as tax base erosion and wealth concentration. The paper proposes increasing capital-related taxes, exploring automation labor taxes, and suggests measures like public wealth funds, welfare improvements, and pilot programs for a four-day workweek to ensure broader sharing of AI's benefits.
Archer-Daniels-Midland (ADM) former CFO Vikram Luthar filed a 61-page legal document on March 27, item-by-item denying the core allegations in the accounting fraud lawsuit brought by the U.S. Securities and Exchange Commission (SEC) in January. Luthar's attorneys also argue that their client reasonably relied on the advice of qualified accounting and auditing professionals from both within ADM and independent third parties, and that the claims should be dismissed in whole or in part.
KPMG's latest AI Pulse survey shows that 45% of business leaders are willing to pay an 11% to 15% salary premium for talent with strong AI skills; average AI spending by companies over the next 12 months is expected to reach $207 million, nearly doubling from the same period last year.
Steven Fleming, leader of PwC US Performance and Restructuring, notes that CFOs should treat financial distress signals like health warnings. In 2025, bankruptcy filings reached 552, a ten-year high, while Liability Management Exercises (LME) are increasingly popular as out-of-court restructuring tools. Fleming advises CFOs to proactively negotiate with creditors before triggering covenant breaches or running out of cash, to preserve strategic control.
Marsh's 2025 Global Transaction Risk Insurance Report shows that as M&A activity warms up and deal sizes expand, transaction risk insurance prices have begun to recover after years of decline. Average premiums for representations and warranties insurance rose 16% in North America, 8% in Asia, and 5% in Europe, while remaining largely flat in the UK and Pacific regions. Craig Schioppo, Marsh's Global Head of Transaction Risk, stated that the price increase is primarily driven by claims activity, but it remains uncertain whether this marks a shift toward a tightening market cycle.
Tennessee Republican Senator Marsha Blackburn released a comprehensive AI proposal draft on Wednesday, aiming to establish a unified federal regulatory framework for AI. The draft requires public companies and other entities to disclose AI-related layoffs, job changes, and other workforce impacts to the Department of Labor quarterly, with violators facing civil penalties of up to $1 million per occurrence. The proposal also covers AI safety rules, developer responsibilities, digital likeness protection, and seeks to preempt state laws.
According to research released Wednesday by Grant Thornton, 57% of CFOs say customer price sensitivity in their industries has increased. To address this trend, AI and advanced pricing models such as segment-based pricing and dynamic pricing are being increasingly adopted, with 16% of organizations having fully implemented them and another 35% in the process of scaling up. Meanwhile, 73% of CFOs say affordability concerns have impacted pricing strategies.
A report released by The Conference Board on Tuesday indicates that as companies accelerate digital transformation, technology and HR executives have gained significant improvements in both compensation and status. Between 2021 and 2025, the number of chief technology officers and chief human resources officers entering the top-five highest-paid executive lists at Russell 3000 companies surged by 61% and 55%, respectively. Andrew Jones, co-author of the report, stated that talent, culture, and digital capabilities are now viewed as corporate risks rather than support functions. Meanwhile, data from the Federal Reserve Bank of St. Louis shows that artificial intelligence contributed 0.97 percentage points to U.S. economic growth in the first three quarters of 2025, surpassing the technology-driven impact during the 2000 internet bubble era. However, a survey by ResumeBuilder.com reveals that more than half of U.S. companies are cutting employee compensation or laying off workers to free up funds for AI investments.
Accenture's latest survey shows that the adoption rate of generative AI in the early stages of M&A transactions rose from 31% in 2024 to 46% in 2026, but the post-deal adoption rate only increased from 18% to 27%. A McKinsey report states that AI can shorten deal cycles by 10%-30% and reduce costs by about 20%, but experts warn that using AI in due diligence may violate confidentiality agreements.
According to a Challenger, Gray & Christmas report, U.S. tech layoffs totaled 33,330 in January-February 2026, up 51% year-over-year. Amazon cut 16,000 positions, and Block plans to reduce its workforce from 10,000 to 6,000, explicitly relying on AI. AI was cited as the reason for 12,304 layoffs, accounting for 8%. Federal Reserve governors, lawmakers, and analysts are debating AI's impact on employment.