Risks brought by artificial intelligence assistants -Part 2


Si Gyeongmin

Sep 21, 2021

2. Management response

Uncertainty in the market has led companies to hoard cash and reduce debt to hedge against future shocks, further reducing investment and recruitment. Increasing cash or other current assets may be an effective means to prevent super conversion, because it will enable the company to pay daily expenses for a long time in the case of revenue decline, thereby gaining time for the development of new revenue-generating or cost-cutting strategies.

Another possible business response is the diversification of the company. Diversification may be particularly effective in preventing excessive speculation. If a company that sells tissues has many different products, such as food and mattresses, it is unlikely that the company will fail in the face of a super conversion of tissue customers.

In addition, it may be easier for companies to acquire competitors in the artificial intelligence market. Once it is discovered that a company is prone to lose revenue due to super conversion, the seller’s market value will drop, making it a cheaper target. Therefore, artificial intelligence assistants may accelerate industry consolidation, which may undermine competition given the difficulty of identification by antitrust regulators.


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