State Street quarterly report filed 30 Jul 2026
SEC EDGAR
Reporting period ended 30 Jun 2026
State Street has highlighted several risks associated with its development and adoption of artificial intelligence in its quarterly report. The company noted that developing new products incorporating AI may impose costs, involve third-party dependencies, and expose it to increased operational and strategic risks. Additionally, the rapid advancement of frontier AI models is seen as a factor that amplifies cybersecurity risks, facilitating more sophisticated cyber-attacks and fraud schemes.
AI adoption and advanced AI-driven cyber-attacks pose heightened operational risks
The company identified operational risks from both the integration of AI to enhance operational effectiveness and external cyber-attacks leveraging advanced or new AI models. Additionally, frontier AI models are noted to amplify cybersecurity risks by facilitating more sophisticated cyber-attacks, social engineering, and fraud schemes.
“Attacks or unauthorized access to our or our business partners' or clients' information technology systems or facilities, such as cyber-attacks or other disruptions to our or their operations, including attacks leveraging advanced or new artificial intelligence models that are continuously evolving and presenting heightened risks, could result in significant costs, reputational damage and impacts on our business activities;”
Context: State Street Corporation | 6, Management's Discussion and Analysis of Financial Condition and Results of Operations, Operational, Cyber and Technology Risks
Product development incorporating AI poses strategic and financial risks
State Street disclosed that the development and completion of new products and services incorporating artificial intelligence could impose costs, involve dependencies on third parties, and expose the company to increased risks.
“Our development and completion of new products and services, including State Street Alpha ® and those related to wealth servicing, alternative investment management or digital assets or incorporating artificial intelligence, may impose costs on us, involve dependencies on third parties and may expose us to increased risks;”
Context: State Street Corporation | 5, Management's Discussion and Analysis of Financial Condition and Results of Operations, Strategic Risks