Company: RSKD
Filing Date: 2025-03-06
Form Type: 20-F
Source: 0001851112-25-000006
Chunk: 87

Company: RISKIFIED LTD.
Filing Date: 2025-03-06
Form: 20-F
Item: Item 4
Chunk 87
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 companies have been the target of FCPA and other anti-corruption investigations and penalties. See Item 3. D. “ Risk Factors - Risks Related to our Business and Industry - Our failure to comply with the anti-corruption, trade compliance, anti-money laundering and terror finance and economic sanctions laws and regulations of the United States and applicable international jurisdictions could materially adversely affect our reputation and results of operations.”

Artificial Intelligence

Our business heavily relies on artificial intelligence, machine learning and automated decision making, and the regulatory framework for this technology is rapidly evolving. Many federal, state and foreign government bodies and agencies have introduced or are currently considering additional laws and regulations governing the use of such technologies. These additional laws may limit our ability to use these technologies for our business, require us to expend additional resources to be in compliance, or require us to adapt our business practices to comply. In the United States, there has been uncertainty regarding the applicable regulations that will apply to the development and use of AI technologies. For instance, the Trump administration has rescinded an executive order relating to the development of AI technologies that was previously implemented by the Biden administration. The Trump administration then issued a new executive order that, among other things, requires certain agencies to review, develop and submit to the president action plans to “sustain and enhance America’s global AI dominance”, and to specifically review and if possible rescind rulemaking taken pursuant to the rescinded Biden executive order. Thus, the Trump administration may continue to rescind other existing federal orders and/or administrative policies relating to artificial intelligence technologies, or may implement new executive orders and/or other rule making relating to AI technologies in the future. Additionally, new laws regulating artificial intelligence - in particular generative artificial intelligence, algorithmic recommendation and deep synthesis technologies - have been enacted in China, and in August 2024, the European Union’s EU AI Act entered into force, establishing a comprehensive, legal framework for the regulation of artificial intelligence systems across the EU. The majority of obligations under the EU AI Act will apply from August 2026, and once fully applicable, the EU AI Act will have a material impact on the way artificial intelligence is regulated in the EU, including requirements around transparency, conformity assessments and monitoring, risk assessments, human oversight, security, accuracy, general purpose artificial intelligence and foundation models. There is also an increase in litigation in a number of jurisdictions, including the United States, relating to the development, security and use of artificial intelligence. See Item 3. D. “ Risk Factors - Risks Related