Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 1166

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 1166
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 sophisticated and include malicious software, ransomware, attempts
to gain unauthorized access to data and other electronic security breaches that could lead to disruptions in critical systems, unauthorized
release of confidential or otherwise protected information and corruption of data, substantially damaging our reputation. Any person
who circumvents our security measures could steal proprietary or confidential customer information or cause interruptions in our operations.
We incur significant costs to protect against security breaches, and may incur significant additional costs to alleviate problems caused
by any breaches. Our failure to prevent security breaches, or well-publicized security breaches affecting the Internet in general, could
significantly harm our reputation and business and financial results.

21

We
incorporate artificial intelligence, or AI, and machine learning, or ML, into our products. This technology is new and developing and
may present both compliance and reputational risks.

We
rely on AI and ML in the operation of some of our products. The AI models that we use are trained using various data sets. If our AI
models are incorrectly designed or implemented or do not receive pictures or visual data, they may produce inaccurate or unreliable results,
negatively impacting the performance and reliability of our products. The effectiveness of our AI models depends on the quality and completeness
of the data used for training. If the data is incomplete, inadequate, or biased, it could lead to suboptimal model performance, impairing
the functionality of our products. Any malfunction or unexpected behavior in our AI-driven systems could disrupt our operations, leading
to increased downtime and higher maintenance costs for our customers, and potential loss of revenue. Additionally, failures in the performance
of our AI models could damage our reputation, erode customer trust, and result in loss of business and negative publicity.

Our
products use AI, ML, and automated decision making technologies, including artificial intelligence and machine learning algorithms, and
is making significant investments to continuously improve the use of such technologies. There are significant risks involved in developing,
maintaining and deploying AI, ML and automated decision making technologies and there can be no assurance that the usage of such technologies
will always enhance our products or services or be cost effective and more generally beneficial to our business, including our efficiency
or profitability. In particular, if these AI or ML models or automated decision making technologies are incorrectly designed or implemented,
trained or reliant on incomplete, inadequate, inaccurate, biased or otherwise poor quality data or on data to which we do not have sufficient
rights, and/or are adversely impacted by unforeseen defects, technical challenges,