A new survey from Gartner has found that the availability of generative AI systems like ChatGPT is quickly becoming a top concern for enterprise risk management. Out of 249 senior risk executives surveyed in Q2 2023, 66% cited generative AI as an emerging risk needing attention.
This reflects the rapid mainstreaming of AI systems that can generate original text, images, and code. While the technology promises benefits, it also poses new risks around data privacy, security, bias, and legal compliance.
According to Gartner, enterprises should take three main steps to manage generative AI risks:
1) Assess Intellectual Property and Data Privacy Exposure
Sensitive data entered into public systems like ChatGPT can become part of the training dataset and end up in outputs seen by other users. This threatens privacy and intellectual property. Firms should issue guidelines against entering confidential data and carefully review any generative AI outputs.
2) Mitigate Cybersecurity and Fraud Risks
Hackers are already using generative AI to create fake content and phishing scams at scale. Businesses should coordinate with cybersecurity teams to defend against threats like prompt injection attacks. They should also verify due diligence sources as generative models may fabricate plausible-sounding but false information.
3) Evaluate Legal and Regulatory Obligations
Generative AI risks violating copyright and fair lending laws if biases exist in the models. Organizations must ensure transparency in AI use, perform impact assessments, and provide human oversight of outputs. Firms should monitor emerging regulations in jurisdictions and prepare accordingly.
Gartner recommends that legal, compliance, security, and technology leaders work together closely to build AI governance and controls that balance innovation with responsible use. Though regulations are still developing, proactive oversight of generative AI will reduce legal, reputational, and financial risks.
With powerful generative models now widely available, enterprises can no longer ignore the downsides. Assessing and mitigating risks will enable firms to tap the technology's benefits while avoiding pitfalls. But neglecting appropriate safeguards makes organizations vulnerable on many fronts.
Sources:
Gartner Survey Shows Generative AI Has Become an Emerging Risk for Enterprises
Gartner Identifies Six ChatGPT Risks Legal and Compliance Leaders Must Evaluate
Gartner Identifies Four Critical Areas for Legal Leaders to Address Around AI Regulation
