Advances in technology can create new opportunities for businesses. They can also reduce the labor required from business owners and their employees. Artificial intelligence (AI) technology is arguably the most exciting new development in the technological world in several years.
Early adopters have already begun finding ways to integrate AI into their company operations. In theory, AI can cut down on demands placed on workers and can streamline redundant job functions. Unfortunately, AI can also create challenges that might cost a company customers or damage its reputation. Other times, AI could leave the company legally exposed.
What are some of the risks business owners need to understand before integrating AI into company practices?
1. The risk of invalid contracts
People have begun using AI to produce written text instead of relying on humans. The idea is that AI can glean information from a variety of sources and produce easy-to-read text. While AI text can be a good starting point when developing new contracts, it should not be used without thorough review.
AI could potentially produce contracts that include provisions that do not align with state law and that might make a contract unenforceable. Having an attorney review a contract before presenting it to another party is recommended.
2. The possibility of inappropriate chat results
AI can eliminate the need to have workers on hand to field customer inquiries. Companies have started using AI chatbots on their websites to quickly respond to questions from prospective customers or clients.
The issue with this approach is that AI can easily make major mistakes when analyzing content online and answering questions. Unlike humans, who can actively reason, AI simply gleans from information that is already available.
In other words, those asking how to use a product or which version of the company’s services is right for their needs could receive inaccurate information from a chatbot. They may end up dissatisfied with their purchase or may turn to another business because the answer indicates that the company isn’t the right fit for them.
3. The possibility of workers shirking tasks
Companies may need to adopt AI policies for their employees to protect against their workers misusing this technology. Professionals ranging from graphic designers to structural engineers might use AI instead of committing the appropriate level of human review to a project or task.
The end result may be that the company submits a design schematic to a client with inaccurate information or reproduces content already published by another business that uses the same AI software.
Understanding the business law implications of AI software can help business owners find appropriate ways to use AI and protect themselves from its misuse. The choice to update contracts and company policies as technology evolves, and have your lawyer assist you, is crucial for adequate legal protection.
