If you use artificial intelligence or manage team members who do, risk awareness and reduction strategies are essential for keeping companies, reputations and data safe.

Although AI applications are relatively new and still emerging, you can learn and apply numerous actionable steps to prevent unwanted consequences.

1. Create Employee Usage Agreements

AI has become a technology affecting everything from image editors to scheduling tools. A related issue is that some products have artificial intelligence features that executives may not want their employees to use.

There is a difference between a news reporter using an AI tool to run grammar and spell checks before submitting a piece versus depending on that product to write an entire article and publishing it without reviewing the content. AI can fabricate information, creating reputational risks for news agencies or other information distributors who use the technology for applications that could worsen outcomes rather than improve them.

A 2023 study also showed 64% of office workers had entered confidential or sensitive information into generative AI tools. That is particularly worrisome considering that 39% of those polled said they believed such products could leak the information put into them.

Some company leaders have responded to these AI risks by creating policies for how workers can use those tools. Results from the 2023 research found 24% had received mandatory rules, while another 21% got voluntary guidelines. Further findings showed the vast differences in actions, with 12% of those polled saying their companies banned generative AI at work and 36% indicating they had not received any guidance about the technology.

Company leaders should explicitly state how workers can and cannot use artificial intelligence. They should also give easy-to-understand examples of potential approved versus banned applications for maximum clarification. Finally, workers should receive contact details to use when additional questions arise about using AI at work. Having each worker sign a document to indicate their understanding of the policies is a practical protective measure against potential ramifications later.

2. Understand the Types of Vendor-Accessed AI Data

When company decision-makers approve purchasing new tools to support workflows, they must learn how the vendor uses data and whether the practices introduce cybersecurity or privacy risks. Additionally, those leaders should ask a vendor’s sales representatives which information the AI tools collect and what happens to it.

Contractual agreements, privacy policies and associated documents generally describe three types of data and the handling procedures for each: Training data, personal data and customer data.

Personal data and customer data have significant overlap. The first type has details that can identify individuals, while customer data is the information people provide while interacting with your company’s services. Whenever a vendor’s contract mentions training data, it is specific to AI and is the information the company uses to make its algorithms function.

Vendor documents usually mention how training data will improve the algorithms and AI tools. Anyone considering using products with AI features should determine how the provider uses data for training purposes and whether the information will have confidential details removed before use. Some AI product interfaces also have settings users can change regarding whether vendors can collect their data for training reasons.

Understanding what AI vendors keep and use is a good first step. However, potential clients should also use those details to limit the transmitted data and decide whether to do business with particular providers.

Additionally, it is wise to follow a three-step data anonymization process internally — identify sensitive information, replace it with anonymous data and instruct workers to verify that the anonymization occurred before submitting information to an AI tool. Removing confidential details from company data has privacy benefits beyond artificial intelligence because it limits the damage hackers or other unauthorized parties could do if they have it.

3. Encourage Employees to Keep Applying Their Knowledge

Many corporate leaders have begun treating artificial intelligence as an all-encompassing technology that can do virtually anything. However, the accompanying high levels of trust that come with such beliefs can pose risks, too. Although AI has amazing functionality in some well-chosen use cases, other applications are still in the relatively early development stages. Additionally, even the most advanced platforms and tools can generate incorrect information or otherwise perform in unexpected or unintended ways.

Forecasts indicate companies worldwide will spend $110 billion on technology in 2024, and decision-makers must have accurate perspectives about what the products they buy can do best and where they fall short. Leaders from Air Canada, Google and Sports Illustrated are among those who have recently experienced how AI can bring media attention to their brands for undesired reasons.

Keeping employees heavily engaged in the respective processes avoids adverse outcomes. Artificial intelligence can supplement human expertise, but risk levels rise when executives replace people or have AI do tasks without employee oversight. People interpret information within its context, but many AI tools cannot.

Additionally, the quality of artificial intelligence-driven responses depends on the training data. If that information has errors, biases or other reliability issues, so will the output. Having workers check AI results instead of trusting them unquestioningly is an excellent risk reduction strategy.

Researchers also worry AI overreliance will cause skill erosion as people forget to do tasks they allow technology to handle for them. That happened in an accounting firm that had automated many of its fixed-asset services. Accountants had to relearn automated tasks specialized software had done for years. Having employees regularly participate in even the most easily automatable tasks mitigates that outcome.

Remain Upbeat and Cautious About AI

Artificial intelligence is increasingly accessible, and many people have already experienced how it can positively change their work and leisure time. There is also plenty of evidence that AI will keep improving users’ lives. However, anyone who currently interacts with the technology or plans to soon must maintain a balanced perspective and refrain from viewing tools and platforms as fault-free solutions.

Almost everything in life has associated risks, and that reality applies to artificial intelligence. However, common sense — and the above suggestions — can help people find the most appropriate and safest applications. Researching the most likely downsides and taking proactive steps to reduce them is a wise response to maximize the advantages of this widely available and diversely applied technology.