The general counsel is a strategic risk officer unless they understand the company’s strategy on AI, they can’t develop the necessary internal processes and frameworks to manage risks. An important consideration is whether a company’s use of the technology is covered by insurance
“Trying to obtain insurance after a problem can be much more expensive than being proactive about the risk.”
Then there are privacy concerns. With ChatGPT, for example, the service provider will have access to inputs and may not be restricted from using or sharing them with others.
If a business is in a highly regulated sector, using the technology might need to be limited. Relying on AI to make employment or credit decisions can be fraught and potentially implicate anti-discrimination and fair lending laws.
As Mata vs. Avianca Airlines., Inc. illustrates, the information generated by AI may also not be reliable with the question becoming one of ensuring that appropriate frameworks and human supervision are in place.
Source: FT.com
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