AI in Business: The Three Critical Concerns You Can’t Ignore

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Robot at Chalk Board #AI, #IPGuy, #Patent, #Intellectualproperty, #PatentofficeIn today’s rapidly evolving business landscape, artificial intelligence (AI) is a topic that demands our attention. As a business owner, understanding how AI is handled within your organization is paramount. In this article, we will delve into three pressing concerns that every business owner should address when it comes to AI: the definition of AI in business policies, the underestimated risks of AI, and the potential pitfalls of over-restrictive policies.

AI Policies in Business: Navigating Definitions and Unleashing Potential

In the realm of business policies, the definition of AI is a crucial factor that often goes overlooked. Many current policies refer to AI or AI-generated results but fail to consider the broader scope of generative AI, such as ChatGPT. This omission can have far-reaching implications for your business, as demonstrated by recent guidelines from the United States Copyright Office.

Under these guidelines, even digital cameras equipped with AI fall within the definition, necessitating the identification of the AI used and supplemental applications for previously registered images.

Decoding AI: Unveiling the Hidden Dangers and Potential Pitfalls

One of the foremost concerns about AI is the often underestimated risks associated with its use. AI can, at times, exhibit erratic behavior, leading to outcomes that are far from accurate. While it tries to provide accurate responses, it ultimately relies on statistical patterns to generate text, not logical reasoning. In generative AI language, it hallucinates, meaning that it makes things up.

This was exemplified when two New York lawyers submitted a brief prepared using ChatGPT, only for the court to discover fabricated cases. They were sanctioned $5,000 as a consequence. Such incidents underscore the importance of vigilance when relying on AI-generated content.

AI Policies: Striking the Balance Between Control and Innovation

Overly restrictive policies regarding AI create a significant concern for businesses. Some organizations impose strict prohibitions or require management approval to use AI tools. However, this approach may hinder your business’s ability to stay competitive in a rapidly evolving landscape.

Businesses must embrace AI and adapt to its ongoing development. While it’s essential to exercise caution, a complete ban on AI may stifle innovation and knowledge acquisition within your organization.

In conclusion, AI’s impact on businesses is undeniable, and business owners need to stay informed and proactive. By addressing these three critical concerns—defining AI in policies, understanding its risks, and avoiding overly restrictive policies—you can harness the potential of AI to drive growth and innovation in your business. Embrace AI as a valuable tool, navigate its complexities, and propel your business into a future where AI plays a central role in success.

 

Bill Honaker, The IP Guy

About the Author:

Bill Honaker, “The IP Guy” is a former USPTO Examiner, a partner with Dickinson-Wright, and author of the forthcoming book, Invisible Assets – How to Maximize the Hidden Value in Your Business. To download a sample chapter, click here.

To get answers to your questions click here to schedule a time to talk, email Bill@IPGuy.com, or give him a call at 248-318-7015.

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