How Do Regulations on the Use of Generative AI Impact Your Business?

It’s no exaggeration to say Generative AI (Gen AI) is dramatically altering the corporate landscape - companies across the world are leveraging the novel paradigm to boost productivity in a big way and cut operating expenditures significantly. A study by McKinsey & Company shows Gen AI is likely to add the equivalent of USD 2.6 trillion to USD 4.4 trillion to the global economy annually.

Despite the numerous benefits of Gen AI and its immense potential to transform the world of business, many experts advise caution in the adoption of this cutting-edge technology by companies to meet their needs. While it’s true Gen AI allows organizations to empower different teams with powerful tools to perform better, questions about various issues pertaining to its use continue to be a source of concern - there’re widespread fears about data privacy violations, infringement of copyrights, spread of misinformation, theft of identities and so on.

In order to quell these fears, many governmental and international agencies are advocating the development of robust regulatory frameworks to govern the use of Gen AI. Regulatory agencies across the world are investigating how Gen AI applications collect information and deliver the desired results. They’ve also evinced keen interest in understanding how companies train their Large Language Models (LLMs), which form the basis of their Gen AI powered systems.

The European Union (EU) reacted quickly to extend the application of the General Data Protection Regulation (GDPR) to the use of Gen AI tools. The GDPR is one of the most stringent data privacy regulations in the world and affects the business of any organization operating in the EU region. While the US lacks a similar, comprehensive statute, there are increasing calls for regulating the use of Gen AI.

While the US is still contemplating the formulation of a regulatory mechanism for Gen AI, the Chinese government has already put in place a detailed policy framework to govern the use of applications utilizing the state-of the-art technology. The country’s Himalayan neighbor and another major market for Gen AI based tools, India, too has come up with a national strategy to promote beneficial and responsible use of AI.

Against this backdrop, how can your business utilize Gen AI with high efficacy, while ensuring it’s put only to proper use? Let’s see.

How Can Companies Leverage the Full Benefits of Gen AI in a Responsible Manner?

Most firms don’t have a clear idea of how Gen AI will affect their businesses. It’s not just a question of what the innovative paradigm can do but also how regulatory policies will impact the way it’s used. In this context, you must find the right answers to the questions listed below.

• What is the source of the data used to power your Gen AI tools?

• How is the data being stored and used? Is there a well-defined policy to govern the use of data?

• What are the steps taken by your organization to protect sensitive client information?

• How does your business ensure transparency in the use of data?

It doesn’t matter where your firm operates or whom you deal with — whether undertaking the development of technologies for other firms or connecting directly with the consumer— make sure you consult with a good attorney who is familiar with cybersecurity statutes and the latest developments in the field of AI regulation to receive proper legal guidance.

Many regulatory agencies have expressed concerns about how businesses gather information and how that information is delivered to the user. It’s advisable to formulate a robust ‘data use policy’ to ensure responsible use of data and ensure compliance to applicable data norms. You must also consider properly documenting the data trail that can throw light on the origin of the data and where it currently resides.

While developing an exhaustive data protection system is the need of the hour, it can be very expensive and requires the services of experts. Most large corporations may be able to afford the development of comprehensive data safety mechanisms, but the same can’t be said of Small and Medium Businesses (SMBs). We’ll now see how these firms with limited resources can ensure proper usage of Gen AI and safeguard their client and business information.

How Can SMBs Ensure Safe Use of Gen AI and Protect Confidential Data Effectively?

It’s very important to perform thorough due diligence before you ink deals with IT vendors and technology partners; you must ensure they follow the right, safe practices when they implement and integrate AI-enabled (or for that matter, any) applications - check whether they adhere to proven data safety protocols, information security procedures and put proper systems in place to prevent your valuable information from falling into wrong hands. You also need to focus on the following key aspects.

• Ensuring full compliance with GDPR (if your business operates in the EU) and other applicable rules

• Creating well-structured AI usage and data governance frameworks

• Imparting effective training to your people on the use of Gen AI and data safety

• Auditing your information security practices from time to time to make sure they are relevant and work

As you can see, by following the safeguards discussed above, you can ensure safe use of Gen AI tools to meet your business goals. At Solunus, we work with you to unleash the immense power of Gen AI to maximize your productivity and provide delightful services to your clients. Our team of experts has helped companies of all sizes across the industry spectrum make the best use of cutting-edge technologies. Their rich experience, coupled with our proven ‘business-needs-first’ approach, enables us to deliver the perfect solution that provides the highest ROI.

Hope you liked this post. How do you use Gen AI? We’d love to know.

About Solunus

Solunus is a leading Salesforce consulting company, based in Dallas, TX, USA. Our proven ‘needs-first’ approach coupled with our unrivaled expertise of the Salesforce platform enables us to provide the perfect solution to help you deliver delightful services to customers and achieve rapid growth.