Artificial intelligence (AI) is reshaping business operations in a variety of ways, and some of these are providing business owners with attractive opportunities to improve their efficiency. While it may be tempting to jump on board as quickly as possible, the use of AI in business is something that must be approached with caution.
As is the case with any new technology, it’s critical to think about the benefits and the risks of AI in business so you can make an informed decision about whether the change is in the best interest of the company.
Adoption of AI comes with significant risks
One of the main issues that you may encounter if you opt to introduce AI into your business is that these systems are so new that they may be unreliable. AI systems can make hallucinations, which could lead to significant errors that can affect your business. This is particularly important if your company deals with anything that’s covered under consumer protection laws or that is considered personally identifiable information, such as Social Security numbers.
Data privacy is another issue because an AI system relies on massive volumes of data to function properly. It’s best to assume that any AI system is storing data and using it for training. While many AI companies allow people to opt out of that type of activity, it’s best to consider both federal and state privacy laws before introducing AI into anything that would be covered under those laws.
Since the use of AI in business is still so new, there are only limited or vague laws surrounding it. Consulting with someone who can help you to determine how and when AI use is appropriate for your business may help you to avoid legal conflicts in the future.
