What Your Business Should Know About Artificial Intelligence (AI) and Data Privacy

With the emergence of algorithmic-based generative Artificial Intelligence (AI) tools, such as OpenAI’s ChatGPT, Google’s Bard, and Microsoft’s Bing chatbot, businesses and consumers alike are becoming increasingly aware of how powerful AI can be and the potential impact on personal information and one’s data privacy.

Here’s What You Need to Know About AI and Data Privacy 

At its core, AI is a set of techniques used to process large amounts of data correlations that are used as a model to generate an output. AI tools come in wide varieties. Some of the most common generate output based on machine learning, natural language, and algorithmic processing.  

Companies should consider the potential risks associated with using AI and take steps to ensure that their use of AI is transparent, ethical, and responsible. AI systems are designed to learn from data, and the output generated is only as good as the datasets on which the AI model is trained. Data privacy is essential to ensure that AI systems are used responsibly and ethically and not to discriminate against individuals or groups. 

What Businesses Should Be Aware of When Using AI Tools

Consumers should know what data is being collected and how it’s used. The data subjects whose data is used to train these AI tools may be completely unaware, creating a privacy and transparency issue for individuals and businesses.  

Businesses using AI tools must be aware of the datasets the tool utilizes and that the output is trustworthy. These tools are only as sound as the algorithms on which they are based, creating the potential for collecting and storing vast amounts of user data.  

Organizations utilizing AI are at risk of processing protected information unknowingly due to algorithms in place, putting such organizations at risk of violating data privacy laws. The data privacy implications from a business’s unintentional collection of consumer information could potentially result in legal, financial, and reputational liability.  

Four Business AI Tips: 

  1. Ensure your business has a robust data privacy policy in place to protect the data collected and used.  

  2. Ensure your business is transparent about how this data is used and be accountable for any misuse.

  3. Maintain strong safeguards against unauthorized usage and regular reviews to verify compliance with data privacy laws and regulations.

  4. A Data discovery is an excellent first step in identifying the data your business collects. iCorps can help with a Security Assessment.

Request a Free IT Consultation Blog CTA 2022 Resized

Benefits of Using AI

  1. AI can help improve data privacy by automating data protection practices.

  2. AI quickly processes large amounts of customer data, detects illegal activities, and improves personalization.

  3. AI can help organizations better mitigate the risks associated with their operations.

  4. Businesses can provide a more tailored experience for customers.

  5. AI-assisted data protection is AI’s ability to quickly process large amounts of customer data and look for patterns that might reveal illegal activities, such as credit card fraud or identity theft.

Data Protection Laws and Regulations

The increasing adoption of AI has created new opportunities and challenges for data privacy. Privacy laws and regulations are evolving to address the implications of AI for privacy. Data protection laws exist worldwide and generally apply to collecting, using, processing, disclosing, retaining, storing, and securing personal information. 

  • Certain countries have comprehensive data protection laws restricting AI and automated decision-making involving personal information.

  • Other countries, such as the US, do not have a single, comprehensive federal law regulating privacy and automated decision-making, but rather sectoral and state laws.

  • Companies must comply with these laws or face significant legal risks.

The potential for intrusive data collection comes with an ever-growing concern about how our personal information is handled.

Six AI for Business Takeaways:

  1. Have a comprehensive privacy policy that outlines how the company will collect, use, and protect user data.

  2. Develop a process for responding to customer inquiries about their privacy rights.

  3. Ensure that all employees receive training on the company’s privacy policies and take steps to ensure that user data is secure by implementing appropriate physical, administrative, and technical safeguards.

  4. Due diligence is paramount when selecting an AI tool and researching the data privacy laws in your business's state/country.

  5. Be aware if your AI tool collects consumer information, even if unintentional, as this could violate data privacy laws.

  6. Contact the IT experts here at iCorps for a free consultation, and let us help your business address your AI and data privacy needs and concerns.