How to Safeguard Your Business from AI Risks

Get more out of your business with the power of Generative AI. By automating repetitive tasks like data entry, report generation, and scheduling, you can free up your employees’ time to focus on more strategic and value-added activities, boosting operational efficiency and productivity. Plus, using Generative AI is a cost-effective solution compared to hiring additional staff or outsourcing tasks, as it eliminates the need for extra internal resources or external service providers.

However, it’s important to note that Generative AI models can sometimes create unexpected and unintended outputs. Despite rigorous training and testing, these models can produce offensive, inappropriate, or even illegal content. That’s why organizations must have mechanisms in place to prevent the dissemination of unintended outputs and handle any fallout that may occur outside those protective processes.

When it comes to recruitment and HR, AI software can handle monotonous tasks such as candidate sourcing and screening. While AI may tout a 6% error rate compared to a human’s 11.3%, it’s essential to consider the nuances. With generative AI, establishing proper sourcing of data in compliance with privacy and security regulations becomes more challenging. Biases can also emerge, leading to the exclusion of potentially suitable candidates due to factors like academic performance, career history, or personal backgrounds. To avoid perpetuating societal biases and discrimination, checks and balances must be in place to oversee any automated decision-making processes.

Generative AI is also useful for managing customer data. It can quickly and efficiently capture and record data, ensuring consistency and flagging the need for updates. However, the accuracy of AI-generated data must always be manually cross-checked to avoid the pitfalls of trusting software to verify its own data. Businesses can leverage generative AI to build chatbots that improve response times, provide 24/7 support, and handle a higher volume of inquiries. However, close monitoring by customer service employees is crucial to identify glitches and prevent customer complaints and attrition rates. It’s also important to ensure that privacy laws are respected when sourcing new customer leads and that information derived from generative AI software is cross-checked against publicly available material for consistency and accuracy.

For small businesses, generative AI can be a valuable tool in creating high-quality content at scale. It can save time and resources by mimicking human writing, aiding businesses without dedicated content creation teams. However, there’s a risk of generating content that infringes upon existing intellectual property rights or that is offensive, discriminatory, or controversial. Proper vetting by qualified individuals is essential to safeguard a company’s reputation and brand image.

Considering product liability, the proposed AI Act in Europe introduces three risk categories for AI applications. Outright bans are placed on applications with unacceptable risks, while high-risk applications are subject to specific legal requirements. Applications not explicitly banned or classified as high-risk are left largely unregulated. It’s crucial for businesses to stay informed about the evolving legal and regulatory landscape and ensure compliance with AI tools.

In conclusion, when utilizing AI tools in your business, it’s important to verify ongoing compliance with laws, intellectual property rights, and reputation protection. Human checks and balances are necessary at each stage to ensure the utmost protection for your business. Ultimately, it’s your due diligence that will safeguard your business, regardless of any reassurances from third parties.