Generative AI tools are transforming the landscape of how businesses operate. While traditional AI has been around for some time, generative AI goes a step further and creates something new based on the question posed and the datasets it has been trained on.
Below we discuss the questions that businesses need to ask themselves when considering the implications generative AI:
What information does the AI tool use to generate outputs?
Generative AI tools (“AI tool”) can use a range of different sources to train its AI tool including scraping the internet for publicly available information and data inputted by users. At present, there is little regulation on text and data scraping so AI developers are able to use a lot of information/data at will to train AI to be a relatively sophisticated tool.
What does the AI tool do with the data I input and do we have authority to input the data into the AI tool?
Who owns the AI outputs of the data?
What are the pros and the cons of generative AI?
The advantages for businesses using generative AI include increased productivity and the ability to provide personalised and customised outputs, but this must be weighed against the risks generative AI poses, including lack of transparency over how outputs are generated, privacy and security risks of data along with the risk of being pursued for infringing on someone else’s intellectual property rights.
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Technology continues to drive change and improvements across business operations in every sector. But as these technologies evolve and transform the way we do business, so other opportunities and risks appear and legal challenges become more prevalent.
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