Artificial Intelligence Requires Intelligent Data Policies

By Matthew H. Tranter, Goodell DeVries

The increasing availability of AI and large language model services, such as ChatGPT and the upcoming Microsoft Copilot, offer businesses and their employees an opportunity to streamline — if not automate — workflow.

Opportunities for increased productivity abound, with some reports that AI could automate 40% of the average workday. Stories are circulating on how people are using AI to perform data analysis, to aid in scheduling and time management, to help code, and to summarize and produce digests of lengthy meetings.

As promising as AI might be, companies need to be mindful of what their employees are using AI for and what information their employees are sending outside the company.

This was well demonstrated by reports earlier this year that Samsung employees, in an attempt to streamline their tasks, submitted confidential data to ChatGPT, including source code from a faulty semiconductor database, to fix issues with that code. Another Samsung employee asked ChatGPT to summarize meeting minutes.

The internet adage of “if you’re not paying for the product, then you’re the product” holds true for many AI services. Many AI services use, learn from, and retain information submitted by their users to improve their AI models. This includes confidential and proprietary information if such information is submitted.

The time is now for companies to implement clear corporate policies and procedures on permissible uses of AI — and to identify permissible AI services based on a review of the services’ privacy policies — for their employees and contractors. Such policies are necessary to ensure company information is protected and kept confidential, and to make sure employees using AI understand its limitations, in particular, AI’s propensity for accurate sounding but inaccurate answers, i.e., “truthiness.”

If your company is interested in implementing internal guidance for AI use, or assessing which AI services can adequately protect your company’s confidential information, contact Matthew Tranter at mtranter@gdldlaw.com.

About Goodell DeVries

Goodell DeVries is a regional law firm with a national presence. Our team of attorneys handles the most complex legal challenges for clients across the country in business law, intellectual property, product liability, mass torts, medical malpractice law, appellate matters, complex commercial litigation, insurance, toxic torts, and more. Our lawyers are ranked among the best in the nation by leading directories, including Chambers and Best Lawyers, and we’ve been named among the top law firms for women by Law360. To learn more, visit www.gdldlaw.com or follow us on LinkedIn.