The Future is Now: Why Your Business Should Implement a Strong AI Policy

Why Your Business Needs a Strong AI Policy: The Future is Now

In recent years, the use of artificial intelligence (AI) in businesses has become increasingly popular, particularly in the realm of text generation. AI text generators, such as ChatGPT and Bard, have revolutionised the way that businesses approach tasks such as writing reports, composing emails, and generating social media posts. 

These tools have the potential to greatly enhance productivity and efficiency, but they also carry risks that must be mitigated, particularly in the areas of security, validation, transparency, and ethics. As such, it is important for businesses to have a policy in place regarding the use of AI text generators. In this article, we will explore the importance of having a workplace policy regulating the use of AI text generators. 

This article covers issues stemming from the use of AI text generators, and how an AI policy can address those issues. These include:

  1. The effect of AI text generators on the quality of outputs and the importance of ensuring quality control.
  2. Data protection, in particular:
    1. protection of intellectual property;
    2. protection of digital security;
    3. protection of consumer data; and
    4. compliance with regulatory requirements.
  3. The legitimate expectations of customers that customer service is provided by a human.
Table of Contents

The effect of AI text generators on the quality of outputs and the important of ensuring quality control

The first concern regarding the use of AI text generators is ensuring quality control. AI text generators carry an inherent risk of producing risk of biased or inappropriate responses. For instance, if a business uses a text generator to respond to customer complaints or queries, the generated response may not always be accurate or appropriate. As a result, the business could potentially face negative feedback or even legal issues. 

More generally, having certain employees rely on an unpredictable set of outputs rather than on their own qualified expertise can affect the quality of work that they produce for the company. 

A workplace policy can require employees to apply the same level of quality control to AI outputs that they would apply to all other work, and to only use AI outputs where this process actually makes workflows more efficient. In this way, businesses can ensure that any outputs produced with assistance from these tools are consistent with the organisation’s values, standards and policies.

Want more?

Sign up for our newsletter and be the first to find hand-picked articles on topics that we believe are crucial to successfully scale your unique small business.

By clicking on 'Sign up to our newsletter' you are agreeing to the Lawpath Terms & Conditions

Data protection

A tantamount issue is that of data protection. A policy can make it clear to employees that text input over AI text generators carries the same risks and liabilities as sharing information with any other third party. Not only are data inputs into an AI text generator shared with the company that operates the generator, but such inputs are often added to the training data of the generator, creating a risk that the data may be exposed to other users of the generator. 

This has implications for:

  1. Intellectual property. Businesses should ensure that their employees do not inadvertently expose their ideas and commercial secrets to third parties.
  2. Digital security. Sharing sensitive information with third parties may compromise the business’ security systems.
  3. Consumer data. Businesses should treat their consumers’ data diligently to avoid the risk of any leaks and preserve the integrity and reputation of the business.
  4. Compliance with regulatory requirements. Many industries, such as healthcare and finance, have strict regulations governing the handling of customer data and communication. If a business uses AI text generators to interact with customers, it must ensure that these tools comply with the relevant regulations. By establishing policies that clearly define the roles and responsibilities of employees regarding the use of AI text generators, businesses can ensure compliance and avoid regulatory penalties.

Businesses should ensure that data input into AI text generators should be treated as an external disclosure and subject to the business’s policies regarding data confidentiality and security.

The legitimate expectations of customers that customer service is provided by a human

Another potential risk associated with the use of AI text generators is the potential loss of human touch in customer interactions. While AI text generators can provide quick and efficient responses, they lack the empathy and emotional intelligence of a human customer service representative. Customers and other external parties may have a legitimate expectation that they are communicating with a human drawing on their own expertise.

The use of chatbots could result in customers feeling frustrated or dissatisfied with the responses they receive, leading to a decline in customer loyalty. Businesses need to balance the efficiency provided by AI text generators with the importance of human interactions and establish policies that strike a balance between the two. Ultimately, whether a company integrates AI text generators into its customer service is a commercial decision for the business to make. 

An AI policy can ensure that individual employees do not incorporate AI into their communications with external parties without authorisation from the company. It can also require employees to disclose to external parties wherever they use AI text generators to assist with their communications.

Implementing an AI Policy

To achieve these objectives, an AI policy must firstly have a clear definition of AI text generators, as well as an expansive scope for the use cases where this policy may apply and the persons to whom it applies.

By way of an implementation framework, the policy should establish a contact person responsible for answering questions and making decisions regarding the use of AI text generators. It can provide training and support to employees to ensure that they understand how to use AI text generators responsibly and effectively. It can also outline disciplinary action that will follow from breaches of that policy, to ensure that the policy is taken seriously.

Conclusion

In conclusion, the use of AI text generators such as ChatGPT and Bard has become increasingly popular among businesses seeking to improve efficiency and reduce costs. However, these tools come with potential risks that businesses need to be mindful of. By establishing clear workplace policies regulating the use of AI text generators, businesses can mitigate these risks, protect their intellectual property, and ensure compliance with regulatory requirements. 

Lawpath’s AI Policy template can be a great starting point for your business if you don’t already have an AI Policy in place.

Get a free legal document when you sign up to Lawpath

Sign up for one of our legal plans or get started for free today.

Register for our free live webinar today!

Navigating the End-of-Year Shutdown: Essential Tips for Your Business

12:00pm AEDT
Tuesday 10th December 2024

By clicking on 'Register for webinar' you are agreeing to the Lawpath Terms & Conditions

You may also like

Payment summaries indicate all the payments you have made to your employees over the recent financial year. This article explains how to use them.
From workplace laws to tax updates, discover the essential 2025 changes affecting Australian businesses. Stay compliant and avoid costly mistakes.
Worried about employee performance and retention? Consider implementing a performance management plan. Check out our detailed guide.

Thank you!

Your registration is confirmed. Keep an eye on your inbox for an email with details on how to watch the webinar.