Artificial intelligence tools have revolutionized the way companies operate, offering increased efficiency and improved task completion. However, the use of these tools also poses risks in terms of sensitive data exposure. Data submitted to AI tools can result in legal and contractual challenges for organizations, as highlighted by CyberEdBoard’s latest insights.
According to experts like Ian Keller, security director and CyberEdBoard executive member, online AI tools such as ChatGPT and Google’s Gemini operate on a freemium model. While users can access basic features for free, advanced functionalities are locked behind a paywall. Moreover, the license agreements of these tools often contain vague and user-unfriendly terms, with clauses that grant providers rights over the submitted data.
The top three issues typically found in these agreements include the provider’s rights to use data for training and product improvement, data analytics and marketing, as well as third-party sharing. These clauses raise concerns about data privacy and compliance with regulations like the General Data Protection Regulation (GDPR), which emphasize the principle of data minimization.
Failure to adhere to GDPR guidelines can result in hefty fines of up to 20 million euros or 4% of the company’s annual global turnover. Additionally, a data breach caused by submitting sensitive information to AI tools can lead to reputational damage, customer churn, and legal action from affected individuals or regulatory bodies.
To mitigate risks associated with AI tools, organizations need to implement robust risk management controls. This includes developing a data classification policy, providing awareness training to employees, and maintaining a list of vetted AI providers with clear data usage policies. Companies can also explore the option of developing internal AI solutions to maintain control over sensitive data.
As AI technology continues to evolve, data security remains a critical concern. The European Union’s AI Act is a step in the right direction towards addressing these issues. However, organizations must also ensure they fully understand the risks associated with AI tools and implement tailored mitigation strategies to safeguard their sensitive information.
In conclusion, while AI tools offer numerous benefits for companies, they also present inherent risks, especially in terms of data privacy and compliance. By adopting proactive risk management practices and staying informed about regulatory requirements, organizations can better protect the sensitive data they submit to online AI tools.
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