Regardless of its advantages and concerns, AI is here to stay, especially in the business world. While many companies have found great benefits from the implementation of AI in their business operations, the risks of doing so cannot go unnoticed. Businesses should consider prevention and mitigation practices to avoid troubles with AI usage.
What is Artificial Intelligence?
AI is the simulation of human intelligence by machines, most often computer systems. There is also a branch of AI known as Machine Learning, which focuses on the use of data and algorithms to imitate the way humans learn.
Managing & Controlling AI Systems
Businesses that have or are considering the use of AI tools in their professional spaces must consider the complexities of managing and controlling their knowledge infrastructure or source(s) of information. Businesses need to identify precisely where an AI tool obtains its information before utilizing it for business-related purposes.
Some AI tools, such as Chat-GPT, utilize the internet as their knowledge infrastructure. Although they can filter vast amounts of information in seconds, there are concerns regarding the reliability and relevancy of the output. Moreover, businesses must ensure that proprietary information is not released to users outside of the company by their AI tool(s).
Ethical Consideration
Ethical concerns regarding AI usage involve bias, privacy, and confidentiality.
AI Bias: AI biases develop over time as the tools’ algorithm produces results reflective of human biases. Eliminating biases in AI tools has proven to be difficult because they have the tendency to remain embedded. For this reason, businesses must have control over their AI tools’ knowledge infrastructure so that their data can be trained to eliminate biases.
Privacy Concerns: Unfortunately for businesses, some AI tools do not have the ability to “unlearn” information. If sensitive information is pasted into an AI tool, it may become accessible to other users within or outside of the company. This raises significant privacy and confidentiality concerns that cannot be overlooked.
Best Practices: A rule of thumb for businesses is to never release sensitive information to an AI tool if there is a question as to whether it is appropriate to do so. Healthy skepticism should always follow the utilization of AI tools, especially when business and client privacy is concerned.
Legal Risks & Liability
Businesses subject to data protection regulations, such as the Health Insurance Portability and Accountability Act (HIPAA), must practice caution when utilizing AI tools. The failure to safeguard information may have significant financial and/or legal implications.
Businesses must also consider whether their AI algorithms are biased when using AI tools for critical business operations, such as hiring. If your company’s AI tool has a bias against a particular group, your business may be exposed to potential claims of discrimination.
Business Responsibility
Businesses that utilize AI tools in operations must remain accountable for such use. To protect not only the company, but employees, business partners, and clients, businesses must establish clear AI compliance policies and processes.
On a Positive Note,
While the rise of AI presents daunting concerns, it also has a profoundly positive impact on the world of business. Businesses have transformed as AI tools are implemented into their routine operations. Some businesses utilize AI to automate tasks, such as data entry and customer service, which cuts costs and allows employees to focus on other responsibilities.
At KingSpry, we believe businesses should embrace technological advances in their operations in a legally sound manner. Our Business Law Group understands that in the business world, efficiency is everything. Our highly experienced team of business law attorneys works with companies of all sizes to find practical solutions to the challenges they face every day. If you’re interested in exploring our business law services or have questions about using AI, contact us at (610) 332-0390 or contact@kingspry.com.
