Responsible AI Use in Business

As businesses come to terms with the automation opportunities presented by Artificial Intelligence (AI), they must also consider how its use may create risks regarding authenticity, accuracy and privacy. From streamlining processes and enhancing client experiences, AI offers potential benefits to businesses across a range of industries, while at the same time posing legal and compliance issues which cannot be overlooked.

Where a business intends to utilise AI, it must have processes in place to harness its potential while reducing any associated risks. Developing policies and procedures can assist a business in clearly defining how AI technologies are developed and used, and therefore guide the business and its employees in using AI in a responsible manner which benefits the business and maintains compliance with the law.

Some considerations for businesses utilising AI include:

  1. Client Specific Legal Guidance
    Crafting an effective AI policy demands a nuanced approach which considers each business’ specific industry regulations, the relevant legal framework in place (now and in the future), and the broader technological advancement of AI.
  2. Risk Mitigation
    Implementing AI exposes a business to legal and operational risks ranging from data privacy, copyright infringement or plagiarism. Without a framework in place to guide a business on its use of AI, it is easy to fall into these traps and expose a business to these risks. A well thought out policy can help a business manage these risks and approach them with care.
  3. Contractual Expertise and IP Protection
    Collaboration with AI vendors and partners requires robust contractual agreements, particularly with reference to the protection of intellectual property rights. Not only does AI place the user at risk of breach of other entities’ IP rights, but, due to the nature of AI learning, any IP which is input into an AI learning model, arguably waives your IP rights for sole use. If a business is planning on generating trade secrets and other processes with the assistance of AI, it is imperative that a framework is in place prior to its input into any AI system.

The formulation of a robust AI policy is paramount for businesses seeking to leverage the potential of AI while mitigating legal risks. Osborn Law is actively generating policies and frameworks for clients which are seeking this advice to better serve and protect their business as it grows and evolves.

If you would like to discuss any of the information further or have questions specific to you and your business please contact our Commercial Team on (02) 4927 2900.