Data privacy risks to consider when using AI

 

Understanding Artificial Intelligence (AI)

The recreation of human intellectual functions by machines, particularly computer systems, is known as “artificial intelligence.” Expert systems, natural language processing, speech recognition, and machine vision are some examples of specific AI applications.

The importance of artificial intelligence

AI is significant because, in some circumstances, it can outperform people at activities and may provide businesses with previously unknown insights into their operations. When it comes to repetitive, detail-oriented tasks like evaluating a large number of legal documents to confirm information, AI systems usually operate quickly and with relatively few errors.

 

What are the data privacy risks to consider when using AI?

1. Consumers seek guarantees: Customers are becoming more conscious of the privacy of their personal information and concerned about how businesses deal with useful information about their preferences, locations, credit histories, and other factors.
2. Europe is setting the benchmark: The possible sanctions for breaking the EU’s new privacy regulations make them significant. If companies are found to violate the new privacy legislation, they might be subject to fines of up to €20 million ($22 million) or 4% of their annual worldwide revenue. The GDPR requires businesses to ensure their data collection and usage policies are compliant with the privacy standard. Even if a company doesn’t have an office in the EU, it must abide by the regulations if it uses the personal data of EU citizens to provide services, sell goods, or monitor their behaviour.
3. Control of data privacy: Regardless of their size or scope, businesses adopting these cutting-edge technologies must review how their client and customer data is being safeguarded and used to prevent accidental breaches of people’s privacy expectations.

 Here are a few strategies for bringing up privacy issues during management and corporate board discussions on AI:

• Boards should take the initiative to press for privacy protections

Members of the audit committee might emphasize that they would want to see regular audits of security measures and plans for any potential security breaches. 

• Restrict your actions

Big data sets can make it difficult to explain to customers why a decision was made to reject them for a loan, job, or product. Businesses should establish regular plans for reviewing the data they currently possess, along with deadlines for discarding or thinning the data.

• Specify how vendors will handle the company’s data

Before giving any data to vendors, one must do precise background research on the performance of these vendors in the market, their repayment timing, and, most importantly, how they handle other companies’ data. If a positive response indicates, then only move forward with the deal.

What is the solution to these risks?

Data privacy is very sensitive, whether it is a business’s data or a customer’s. It must be safeguarded. There are dozens of company databases stored with the help of the cloud and AI. There are many risks, such as cyberattacks, misuse of data, insider trading, etc. Prevention strategies such as backups, verification, and antivirus should be implemented to reduce risks.