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Regulatory Burden Factors Into AI Decision

November 6, 2023

Regulatory Burden Factors Into AI Decision

The law firm Fenwick reports that almost 60 percent of employees either use AI in the workplace or soon will use it, but barely 20 percent of employers have policies that address its use.

Fenwick provides four considerations for companies as they develop policies that maximize generative AI’s potential and minimize its risks:

Is there a meaningful use for it? Everybody seems to be adopting what is clearly an innovative technology, but that is no reason you should. Making AI work for you will involve time and money. Is it worth it? Only if it makes your business more efficient.

Permissive Versus Restrictive Policy. The extent of regulation your company faces is the key to this choice. Industries such as financial services and life sciences must consider carefully how compatible the many regulations they must comply with are with generative AI. Individual cases differ, but in general, their policies will be restrictive. Whether AI will be used for business-to-business or business-to-consumer applications is another important consideration.

General Versus Specific Policy. Should your policy address the functions and uses of AI within specific departments, and possibly prohibit its use for some of them, or general in a way that allows flexibility as AI evolves? Some companies are reaching out to clients or customers about AI, and factoring in their feedback.

Approved AI Tools? There are many considerations that go into which generative AI tools should be deployed internally. Creating an approved tool list might be necessary, but it can be hard to enforce when employees use both home and office computers.

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