Financial perceptions and AI infringement risks

Artificial intelligence (AI)-related intellectual property (IP) infringement involves the unauthorized use of copyrighted materials during model training and the creation of content that may violate copyright, trademark, or patent laws. This phenomenon presents critical financial risks for businesses, ranging from reputational harm and erosion of brand equity to potential litigation, regulatory scrutiny, and increased investor uncertainty. This study explores how to understand this emergent risk and the associated implications. To do so, we apply social capital theory to an analysis of 10,447 Chinese social media users' reactions to China's first AI-generated voice infringement lawsuit. Our findings suggest that out-tie social capital (exposure to diverse networks) tends to promote neutral or positive views, while in-tie social capital (strong, close-knit communities) initially encourages favorable attitudes but shifts toward ethical and risk concerns when potential financial damages are perceived. Our study, thus, highlights the interplay between social perception and corporate financial considerations in an era where AI increasingly shapes economic opportunities and liabilities.