How to Manage Privacy And Cybersecurity Risks in an AI Business World
Entrepreneurs are increasingly turning to AI for tasks like writing emails, analyzing data, automating tasks, and handling customer service chats. While AI streamlines business operations, it also poses significant privacy and cybersecurity risks due to the collection of sensitive data. Managing these risks is crucial in the AI-driven business world to protect both the company and its customers. Staying informed about privacy regulations and implementing robust cybersecurity measures are key steps in safeguarding data in an AI environment. It's essential for businesses to strike a balance between leveraging AI's capabilities and mitigating potential risks to ensure a secure and compliant operation.
You know who’s the new best friend of entrepreneurs? It’s AI. It can write emails, analyze data, automate tasks, and serve customers just like humans in customer service chats. Sure, AI makes running a business easier. But it introduces major privacy and cybersecurity risks. These risks stem from the collection of sensitive data and model vulnerabilities. What’s scary? A data breach can cost you millions. Besides financial costs, it can severely damage your reputation, leading to bad publicity and decreased customer trust.
Balance Risk and Reward
You want to use AI, but don’t want your company making headlines for a data breach or a massive AI-driven blunder, right? Good news—you can make the most of AI without falling into these traps. It boils down to a few key things, which we’ll discuss here.
#1 Balance Risk and Reward
A responsible approach doesn’t mean shying away from AI altogether. To harness its power while keeping your business and your stakeholders safe, you need to find a balance between risk and reward. Choose AI tools within existing systems, like Microsoft’s CoPilot, that utilize organizational data without saving it for LLM training. Implement a policy that clearly identifies what sets of data are for AI use. Also, verify that all AI tools used adhere to the institution’s global data security policies.
#2 Implement Robust Cybersecurity Practices
InfoSecurity Magazine revealed that one in five CISOs reported experiencing sensitive corporate data leaks due to their employees’ use of generative AI (GenAI) tools. The most common gen AI threat is phishing, but it’s not the only one. More recently, GenAI has been at risk of flowbreaking. It’s a new type of attack that targets how an AI model generates responses. It interferes with the AI’s internal processing, not just the input. That can trigger not just incorrect responses, but also leak confidential data.
Implement strong data governance policies from the very start of AI adoption. These should include data anonymization, encryption, and other crucial measures. Use encryption, which scrambles your data so unauthorized folks can’t read it. You must also apply strict access controls, like strong passwords and multi-factor authentication, to add an extra layer of security.
#3 Equip Stakeholders for Responsible Use and Oversight
Managing the privacy and security risks of AI is not solely the responsibility of the IT department. It requires a team effort involving everyone in your organization. If your employees don’t understand the risks, no firewall in the world can save you from cyber threats. AI phishing attacks, for instance, are on the rise. Around 60% of participants in a study last year were convinced by AI-generated phishing attacks. Even scarier? The click-through rate of phishing emails created by AI is 54%, whereas it is 12% for human-written content.
Educate your employees. Make sure they understand the fundamentals of AI and the critical importance of data privacy. Also, make them aware of the potential risks, from data breaches to sophisticated AI-driven phishing attempts. Teach them how to spot and report suspicious activity. Your company should also have a clear and accessible AI use policy. This policy must outline the guidelines for using AI tools, especially when handling sensitive data.
Keep Up with the Regulatory Landscape
#4 Keep Up with the Regulatory Landscape
AI regulations are changing quickly, and you do not want to be caught off guard. While there isn’t a single, comprehensive federal law governing AI in the U.S., regulations are emerging at both the federal and state levels. Currently, it appears that federal regulation of AI is taking a more hands-off approach, focusing on promoting innovation. This could mean that states will likely take a more active role in shaping AI-related law.
Many states are either considering or have already enacted legislation addressing various aspects of AI. These laws typically address issues such as algorithmic bias, transparent AI interactions (like chatbot disclosures), and the malicious use of AI for deepfakes. New York City, for example, has implemented the Automated Employment Decision Tools (AEDT) Law. It restricts employers and employment agencies’ use of AI in recruitment and employment.
So, follow AI regulatory updates in your industry and region. If AI is a big part of your business, you need legal and compliance experts who can guide you. So, consult legal professionals. You can do amazing things with AI. But you need to keep your eyes open for potential privacy and security problems. Adopt AI, but prepare for cyber threats before they occur. That is the only way you can harness the power of AI while keeping your data safe.