When ChatGPT was launched in 2022, AI Chatbot and generative AI has quickly gained popularity due to its intuitive interface and ability to reply like a human. This made it a popular tool for various tasks, from writing emails to creating complex documents like proposal.

While these AI chatbots are often offered for free, it’s crucial to remember that there’s no free lunch in the world. By using these tools, users’ input inadvertently contribute in training the AI chatbot itself, which could potentially exposing sensitive information.

And this is just the tips of the iceberg of the damage done towards an organization. Companies should also consider below risks when allowing your employee using free AI chatbot in your environment.

Risk of Free AI Chatbot in Working Environment

Leaking of Confidential Information

Have you tried to use ChatGPT to summarize a confidential contract for you? Or use it to debug a code? Or even use it to draft important document? In a real-life case, a Samsung engineer mistakenly shared their new semiconductor design while using ChatGPT to debug faulty code. Millions of dollars invested in research and development went wasted because of one simple action.

Intellectual Property and Copyright Risks

Generative AI like ChatGPT relies on information collected from countless internet users to create its outputs. If this content were used directly in public company materials, it could potentially infringe on intellectual property rights.

Inaccurate Content Generation

As AI chatbot was trained by the data collected from the vast users, there is no guarantee the answer generated is factual. Furthermore, the chatbot may not always understand your intention and the context of the question, thus the answer may seem accurate but is irrelevant from what you seeking. This is also known as AI hallucination.

High Regulatory Compliance Risk

Free AI chatbot such as ChatGPT shifts its responsibilities to users in its Terms of Use. This means that if the company has violated regulations such as PDPA, GDPR, or IP infringement, the company will be heldn 100% liable, together with the monetary penalties.

What steps can my company take today to mitigate risk with AI technology?

There is no deny that generative AI and AI chatbot has increase day-to-day productivity and sparks creativity, but company should weigh between the benefits and the potential damage it could cause. Here are the steps that company can take to protect itself from the risks exposed by ChatGPT and AI technology:

  1. Establish company-wide policies for the use of ChatGPT and AI, especially when it comes to free tools found online. A safer option might be to create your own AI tools, restricting their access to only within your workplace.
  2. Determine if your current insurance policy covers potential liabilities from AI use.
  3. A company-wide training initiative is essential, as this field is new to everyone. It’s crucial to remember that all employees have a limited understanding of the technology, especially its potential risks, when we approach this training. Create employee training programs, which should include onboarding for new hires during orientation.
  4. Carry out routine risk assessments, monitor compliance, and enforce consequences for non-compliance. This information should be conveyed to employees during training.
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