Artificial Intelligence Risks

Many companies leverage AI for innovation or automation, without considering risks. While any business activity or tool has risk, AI development projects involve unique risks and considerations.

Employee Risks

Your employees are using AI, whether you know it or not. A Deloitte study characterizes that over 60% of employees use AI at work. Yet well under 50% of companies have an AI acceptable use policy. Fewer still have AI Awareness training.

Several companies have seen their intellectual property compromised as it’s put into the public domain via employee use. Other companies have seen factually incorrect information (AI hallucinations) advanced in company output.

If you don’t define the rules via policies and train your employees, the liability is on you, the business.

Financial and Reputational Risks

Misuse or mistakes from AI fall back on the company. This may undermine your reputation, or may cost you directly.

In several instances, bad actors (or simply mischievous ones) have tricked AI chat bots into making promises on behalf of the company. In at least one case, a court required the company to honor the promise.

When your employees, or even your AI bots, make mistakes. The company is responsible.

Training Data Risks

Model Risks

Output Risks

Sensitive Data

PHI, PII, Biometrics

Racial/Ethnic, Financial, Educational, Location

Training Data Provenence

Ownership, Usage Rights/Consent

Source, Accuracy, Integrity, Bias

Bias Risks

Employment, Financial, Justice/Legal

Decision Risks

Critical Infrastructure, Healthcare, Safety

Liability & Reputational Risks Hallucinations, Intellectual Property rights, Privacy/Breaches, Unintended Consequences

Misuse of Output Data

Deepfakes, Propaganda, Fraud

AI-Specific Cyber Security Vulnerabilities

Model Inversion, Model Extraction, Model poisoning, Adversarial Attacks

Check out our services to see how we help you manage these risks: Our Services

Privacy Risks

Privacy risks range from regulatory and legal obligations, to reputation and liability impacts. Maintaining the security and confidentiality of client data is the foundation of a trusted relationship.

With privacy legislation proliferating around the world, more companies are falling under the regulatory umbrella. In addition, as our clients implement formal privacy programs, they cascade privacy requirements onto their suppliers via contractual obligations.

You don’t have to have a direct presence in a state to be subject to their privacy regulations. If you have a threshold level of a state’s residents data in your databases, you may be subject to their laws. Over 14 states have passed privacy legislation in the last 18 months. Here’s what the trend looks like:

Check out our services to see how we help you manage these risks: Our Services