What Is Generative AI?

Not Without Risk: AI Integration 

With this increased dependence on AI comes the need for companies to be more mindful about how they approach the use of the technology. Most companies do not have the resources to build their proprietary AI technology from the ground up and therefore have to rely on third-party providers. This can create inherent risks related to intellectual property rights, data security, privacy issues, ethics and confidentiality. 

Here’s a few tips on how companies can protect themselves while mitigating risk in the new world of AI. 

1. Check for compliance with data privacy policies

Companies must carefully consider the user agreements that they have with any AI tools and how it impacts their data privacy policies. This is especially true for companies that have sensitive information and are legally bound by confidentiality laws.

The breach impacted several active ChatGPT Plus subscribers from March 2023. Their payment details, such as their name, email address, payment address, credit card type, and the last four digits of their credit card number, were compromised.

Additionally, it is believed that the account credentials of over 100,000 OpenAI ChatGPT users were also compromised and subsequently sold on the dark web marketplaces between June 2022 and May 2023.

OpenAI acknowledged the potential issue where the first message of a newly created conversation could be visible in another user's chat history if both users were active at roughly the same time. As a result, OpenAI had to inform the affected users that their payment information may have been exposed.

The breach raised concerns because ChatGPT permits users to store conversations, potentially granting unauthorized access to proprietary information, internal business strategies, personal communications, software code, and other sensitive data. 

The breach also raised concerns about the potential misuse of AI technology and highlighted the importance of ensuring safeguards are in place to prevent unauthorized access and manipulation of AI systems. 

2. Build an airtight risk management process

3. Regular audits for data bias 

Furthermore, the AI models used by companies should be regularly audited to minimize the risk of data bias and to guarantee that confidentiality, privacy, and intellectual property concerns are appropriately addressed. While AI can provide several benefits, it is important that companies exercise due diligence and take a risk-based approach to the adoption and integration of AI systems.

The primary risks associated with AI adoption include intellectual property issues, confidentiality breaches, as well as privacy concerns. Addressing these issues will help organizations maximize the benefits of AI while minimizing the risks and better ensuring that the technology is used appropriately to deliver positive outcomes. Otherwise, AI technology is not only potentially dangerous but unsustainable for growth.

CohnReznick is a leading advisory, assurance and tax firm that helps organizations achieve their goals by optimizing performance, maximizing value and managing risk. It offers a comprehensive range of consulting services encompassing various areas, and over the past few years it has begun consulting on AI integration. 

For more information, please contact Deborah Nitka or Adonye Chamberlin, leaders in consulting on AI integration at CohnReznick LLP.

Featured photo by Possessed Photography on Unsplash.

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