ChatGPT defines artificial intelligence as “a branch of computer science focused on creating systems or machines that can perform tasks that typically require human intelligence.” Generative AI refers to intelligence that can generate content based on the patterns it has learned from its training and in response to prompts from users.
The application and scope of AI has grown exponentially in the past decade. This trend will continue at a rapid pace given the transformative benefits and opportunities that it provides to businesses in nearly all sectors. And like with any developing technology or new way of doing things, there can be intended and unintended consequences, as well as risks that need to be understood, managed, and mitigated.
Companies can and should take steps when using AI in their business to help reduce the risk and potential liability. Some of these steps include:
- Understand how AI is Being Deployed. Whether it is in-house developed or through a third party, companies should understand what type of AI is being used and how it is being used on a daily basis. Mitigating the risk first involves knowing the how and when in order to effectively identify what risks might exist or not exist.
- Review Results Carefully. All AI generated material is subject to inaccuracy, based upon the inputs, language model utilized and the nature of the generative process. Any AI output should be independently reviewed as if it were being produced by an intern on their first day.
- Contract Protections. Many companies license AI from third parties. There are certain minimum protections that you should receive as the licensee. Some examples are noninfringement, ownership of the data, compliance with data privacy laws, disclaimers, warranties, indemnification, and limitations of liability. Protecting yourself upfront can be a very effective tool.
- Creating Acceptable Use Policies; Confidentiality. Creating a use policy that provides clear guidance to employees is invaluable. Clear and direct use policies can help to ensure that AI is used in an acceptable manner. Exposing information or data to the AI platform may destroy its confidentiality as well as constitute a breach of contract regarding use of data.
- Education and Training. Development of best practices, training, and educating employees on the acceptable uses of AI is another way to ensure AI is being used appropriately. Setting expectations and a roadmap that helps employees navigate the AI terrain is an important part of education and training in order to take advantage of AI opportunities while simultaneously protecting your business.
This short summary of steps are a few of the many techniques that companies can utilize to protect themselves while the AI proliferation continues to explode. Contact us to learn more.
This post was written by Josh Baker and Barry Friedman
