In Short
- AI technology has the potential to inadvertently breach confidentiality by mishandling sensitive information.
- Businesses using AI must establish measures to protect confidential data and ensure compliance with privacy obligations.
- Regular monitoring and updating of AI systems can help prevent data leaks and maintain confidentiality.
Tips for Businesses
Implement stringent data protection protocols when using AI to handle confidential information. Regularly audit and update AI systems to address potential vulnerabilities. Educate staff on confidentiality practices and ensure they understand the importance of maintaining data privacy while using AI technologies.
The world is increasingly adopting the power of artificial intelligence (AI), including generative AI tools like ChatGPT. Companies, however, are facing a difficult balance between innovation and ethical concerns, especially regarding confidentiality. Nearly all business deals require one or more parties to protect the sensitive information or personal data they have shared. This article explores how you can use AI responsibly and receive its benefits while keeping confidentiality.
Understand Your Confidentiality Obligations
Contracts usually include a confidentiality obligation. This obligation requires you to keep certain information, personal data, processes, figures or plans confidential. You are not allowed to disclose ‘confidential information’ to a third party unless the contract has exceptions listed.
When drafting or reviewing a confidentiality clause or non-disclosure agreement (NDA), it is essential to consider whether you can use confidential information to train AI or disclose it to AI. The receiving party intending to use AI on confidential information will most likely rely on the first or second exceptions mentioned above.
The following sections explore best practices to maintain confidentiality obligations when using AI for your business.
De-Identifying Confidential Information
AI typically uses previous user input to generate future content. Therefore, the best way to ensure you are not in breach of your confidentiality obligations is to avoid inputting any confidential information into AI. However, if you must input specific information to perform your services, make sure not to use any information that you are required to keep confidential. This may include information that could identify your clients, employees, customers or competitors. Instead, ensure that you de-identify your input to AI by removing or modifying information that could identify a company or individual.
Continue reading this article below the formLimit Access to Confidential Data
Strict access control plays a fundamental role in maintaining confidentiality. Organisations can limit access to confidential information shared by implementing strict access controls. This includes not only external threats but also internal users. Limiting access based on roles and responsibilities ensures that only authorised personnel can interact with confidential data, reducing the risk of data breaches.
Train Employees on AI and Confidentiality
Building a culture of responsibility and awareness starts with education. You should provide comprehensive training to employees on AI ethics, data privacy, and confidentiality. This includes understanding the implications of handling confidential information in the context of AI applications. Your employees are more likely to make ethical decisions and contribute to the overall security of the organisation.
This fact sheet outlines your rights and obligations as an AI artist regarding intellectual property and copyright.
Key Takeaways
AI can revolutionise industries, streamline processes, and drive innovation. However, this transformative power comes with the responsibility of protecting confidential information. By clearly understanding your confidentiality obligations, diligence practices, and appropriate staff training, your business can leverage AI without breaches. Striking this balance is essential for using AI’s benefits while upholding the trust and privacy of individuals and organisations alike.
If you need help drafting or reviewing a confidentiality agreement, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Businesses should avoid inputting confidential information into AI systems. If necessary, they should de-identify data by removing details that could identify individuals or companies.
Businesses should train employees on AI ethics, data privacy, and confidentiality to ensure they handle information responsibly and contribute to organisational security.
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