As artificial intelligence (AI) becomes an essential component of today’s business, it’s vital for companies to have their own strategic AI policy and structure that addresses current challenges and positions them for future growth and opportunities.
AI is quickly reshaping industries and having a clear strategy in place ensures your business isn’t just keeping pace but is staying ahead. You may ask why an AI policy is important for your company’s future.
Well, here are some of the reasons:
- Coordinate AI with Your Strategic Business Goals. AI can be leverages to boost efficiency, improve customer experiences, and open new streams of revenue. A well-thought-out AI policy will make sure your AI initiatives directly align with your company’s long-term strategic objectives, which will feed sustainable growth and minimize risk. Plus, an AI policy promotes transparency and accountability.
- It Helps You Comply with Privacy Laws. Privacy laws affect many types of businesses, and if your business has a legal obligation to protect its customers’ private information, you should have an AI policy. That’s because information inputted into an AI chatbot is not private.
- Establish Clear Operational Standards and Procedures. An AI policy sets clear standards for AI use. It will give your company a structure that states what AI tools can be used, who makes those determinations, the acceptable inputs, and how employees will interpret and apply the AI-generated outputs. This is vital for a business’s consistent AI use.
- You Want to Be Accurate. We know that generative AI systems are impressively quick to provide information and content, but there are issues. One is when AI “hallucinates,” generates a response that seems plausible but is factually incorrect or contrary to the context. And it’s not always apparent when it happens. You may have heard about AI generating cites to fake new articles where a newspaper is real but the article isn’t. Publishing inaccurate information can create embarrassment or even legal liability. Plus, it can lead to losing customers’ trust. Recently, a law firm was fined and cited for gross misconduct by a judge for submitted a brief that had more than 30 fake citations.
- It’s a Benefit to the Business and the Staff. A good AI policy provides guidance to employees using artificial intelligence. This helps them know their evolving roles in an AI-integrated environment and makes certain that they use these technologies effectively.
- “Future-Proofing” the Business. Technology is advancing at a furious pace, and with it, AI will continue to play a significant part in molding the future of business. Employing a flexible and adaptable AI framework now will position your company to take advantage of future advancements and to stay competitive.
- Helps You Be on the Cutting Edge. A comprehensive AI policy helps a business to experiment and innovate with confidence. Plus, a company with an AI policy positions itself as a serious player in the AI field. A clear AI policy positions your company as a responsible, forward-thinking organization, which can be quite attractive to investors, partners, and highly sought after talent who prioritize ethical standards and corporate responsibility.
Takeaway
Developing an AI policy helps your business align for futures opportunities. For help drafting a comprehensive AI use policy for your business, contact LOVE LAW FIRM. We help growing and established New York small businesses.
LOVE LAW FIRM wants to provide the advice and support you need to meet new challenges such as the use of artificial intelligence, to protect your business assets, and to grow your business for years to come.
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Francine E. Love is the Founder & Managing Attorney at LOVE LAW FIRM PLLC which dedicates its practice to serving entrepreneurs, start-ups and small businesses. The opinions expressed are those of the author. This article is for general information purposes and is not intended to be and should not be taken as legal advice.
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