Innovative Scottsdale-based Rose Law Group, a full-service law firm that prides itself on hyper-responsiveness to clients’ needs urges Arizona business owners and leaders to take serious care with their company’s AI use. Weekly clients are seeking advice from Rose Law Group to develop proactive AI policies to minimize risk with the new technology.
There have already been major scandals with AI that have cost companies millions. Recent examples include the Canadian airline whose AI chatbot provided misinformation that lead to a revenue loss and PR disaster, as well as the Hong Kong firm that lost $25 million to fraudsters using deepfake technology. Companies need to be ready for future implementation, as Forbes confirmed that AI use will only grow of the new technology by approximately 40% each year until 2030.
Chair of Rose Law Group’s Intellectual Properties and AI Department, Paul Coble, warns that companies are already using AI whether they know it or not and it’s not a matter of ‘if’ your employees will begin using it but ‘when’ and ‘how’.
“All industries are using AI in some shape, from employees using Grammarly to do spell checks, to Adobe’s new generative functions or ChatGPT for quickly creating documents. Business owners must put guidelines in place to enable employees to use helpful AI features without putting proprietary data at risk,” said Coble.
Rose Law Group’s current AI clients include real estate companies, investment firms, software developers and more who have asked what steps must be taken to reduce this risk.
According to Coble, companies should first assemble an AI team, including their attorney, IT department head, and business representative. This group can work together to create guidelines that meet employee needs, employ available tools and overall mitigate risk when using AI.
Second, companies should approach AI with human needs in mind.
“Employees are going to use these products and safe adoption is in their best interest,” he said. “Don’t be afraid to pay for the full version of software that secures your proprietary data instead of allowing employees to use the free version that could put your sensitive data at risk.”
Next, companies need to be proactive with policies, especially regarding use of data and software agreements. Avoiding risk is possible through avoiding the use of new technology, but eventually new tools will be adopted. Making sure the AI Team knows how these tools will use data and comprehending the full nature of software agreements will allow them and their employees to thrive.
