Why is AI data security important?
The FTC has made it clear: Model-as-a-service companies must honor their privacy commitments and refrain from using customer data for undisclosed purposes, or face serious consequences, including the deletion of unlawfully obtained data and models. For enterprises leveraging AI tools, particularly generative AI built on large language models (LLMs) or extensive internal datasets, the stakes are high. A data breach could expose confidential customer information, leading to significant liability.
But the risk doesn't stop there. Employees or customers may inadvertently input confidential company data or other private information into these generative AI tools. Without robust safeguards, this data could be exposed, putting the enterprise at risk of legal repercussions and damaging its reputation.
Additionally, in the United States, it is considered unfair or deceptive for a company to adopt more permissive data practices, such as sharing consumer data with third parties or using it for AI training, without clear and upfront communication. Surreptitiously making retroactive amendments to terms of service or privacy policies to inform consumers of such changes can result in severe legal consequences.
However, data and AI are symbiotic and essential to each other’s success. AI models rely on vast amounts of data to learn, adapt and improve. Without high-quality, secure data, AI systems cannot function effectively, leading to stunted growth and potential failure. Conversely, AI can enhance data management, providing insights and efficiencies that were previously unattainable.
While some organizations have responded to security risks by banning the use of AI tools, it is crucial to prioritize the security and privacy of data as organizations increasingly rely on AI, particularly generative AI, to foster innovation and enhance efficiency.