Benefits of Implementing AI into your Business
Artificial Intelligence transforms the way businesses operate, offering new opportunities for efficiency, data analysis, and customer engagement. When implemented effectively, AI can simplify tasks such as invoicing, customer service, and scheduling, with reduced human error. This allows companies to reduce labor costs by assigning routine tasks to AI, so employees can focus on more complex and strategic work. Proponents also tout AI’s ability to process and analyze a large quantity of data more efficiently and accurately, by identifying patterns and trends that can aid in more informed decision-making. Overall, implementing AI into your business can have many advantages and is no doubt a powerful tool when used properly.
Risks of AI Use in your Business
However, using AI without taking the proper steps can lead to more harm than good. It’s important to understand its potential risks before using AI.
A big concern relates to the privacy of data. AI systems rely strictly on data to operate, and therefore its use most likely will involve inputting into its systems customer information, private business information, and even trade secrets. This data could be leaked or misused through a cyberattack, and your business could end up facing legal consequences.
Another issue with AI involves the level of accuracy. The entire field involving AI is still developing. The press has reported on the many embarrassing and costly errors that AI has made, even referring to its mistakes as “hallucinations.” While this may not be significant when asking AI to recommend movies, for example, it could be a problem if you are using AI to help with screening job applicants, interacting with customers, or interpreting data.
Inaccurate information leads to a bigger debate about who is responsible when things go wrong. Is the business using AI responsible? Is it the people who built the AI? The answers to these questions are still being developed.
To safeguard against issues involving this new application, AI should act as a supportive role in any business, used as a tool to help both the company and its employees work more efficiently and run operations more smoothly. In order to minimize risks, it should not take over critical responsibilities where mistakes could have serious consequences.
Creating Policies Around AI Use
Creating a clear AI policy for your business is important to ensure that AI is used responsibly. Policies should discuss how your business uses AI, what data it can access, how results AI produces are checked for accuracy, and when a human needs to step in. Policies should also include steps for promoting transparency about AI usage and for building trust between employees and clients in how AI is being used within the business. For example, if your business uses AI-generated content or recommendations, this should be communicated to customers. Regular testing, reviewing the quality of the data used to train your AI, and setting limits on how the technology can be used, will go a long way in preventing problems before they happen.
AI is a useful tool, but it’s only as safe and effective as the policies that regulate its use. If you’re unsure where to start or are concerned about how to protect your business as it uses AI, reach out to our attorneys at Hamelburg Law, LLC.
This blog was written by Jamie Kent Hamelburg and Sarah Benjamin, attorneys at Hamelburg Law, LLC, Viktoria Koch-Paiz, an intern at the firm who is a student at the University of Florida, and by Nicole Maxwell, a law student at American University.
