February 2024 - Forging Ahead with Generative AI? Avoid Headline-Making Blunders with These Tips

Generative AI secured its place both in headlines and in real-world usage more than a year ago. It remains top of mind for many as new applications for the technology are continually introduced throughout the legal industry and beyond.

While there are pros and cons to using generative AI in the workplace, employees taking advantage of these tools without any restraints put employers and their proprietary or sensitive data at risk. Unchecked generative AI use in the workplace poses challenges around confidentiality, bias and hallucinations. But rather than a complete, permanent ban of generative AI, organizations should consider the following tips to minimize the risks it poses in general use:

• Assess how an organization could leverage generative AI and what areas of the business should or should not use free or open-source generative AI where they can’t control or opt out of the storage and future use of submitted data to minimize the risk to sensitive or personal data.

• Make guidelines clear in a written policy that defines generative AI, clearly explains its risks and sets out permissible and prohibited uses.

• Require employees to seek approval from management on the use of specific AI tools and maintain documentation on permitted or prohibited tools and uses.
•  
• Train managers and employees on the risks of generative AI tools and the organization’s internal policy on their use.

With respect to the specific application of generative AI in hiring processes, encourage HR teams to conduct bias audits on AI recruitment tools and notify candidates of their use. This will keep the employer a step ahead of rapidly developing laws and avoid potential discrimination lawsuits based on AI use in hiring decisions.

Most important, continue to monitor new generative AI technology, including enterprise versions with enhanced privacy and security controls, and their compliance with company policy, as well as what laws or regulations might apply to employees’ use of generative AI. These tools and the laws surrounding them are rapidly evolving, so continuous tracking and updating of policies are key to ensuring compliance and not falling behind competitors strategically integrating generative AI into their processes.