AI a helping hand, with risks and limitations

Artificial Intelligence applications are being used more and more in business, but are Gisborne businesspeople aware of the risks and the limitations of the technology? The Herald’s Andrew Ashton talks to those in the know.

Marketing coach Alice Kibble sees AI misconceptions all the time in her industry.

“Business owners are easily attracted to new technology that is going to ‘save them time and effort’ for parts of their business. When it comes to using it for marketing, I work with clients to help them understand when to use it and when it’s not going to do them any favours.”

However, there are some key points to consider, she says.

“Online it is our personality and perspectives that create an engaged audience — these are two things that AI can’t do for us. So instead I encourage using it to outline systems or parts of your marketing that require less personal touch.

“AI is also great for idea generation and if we use specific prompts that relate to the audience we want to connect with, we can find great ideas for content we could create. Having the ideas on what to post is normally one of the first barriers to overcome in early stages of social media marketing, but you do need to have good knowledge of your target market for it to be successful.”

A local businessman who has recently introduced ChatGPT-based artificial intelligence to support his financial services operation is finding it “awesome” at learning.

“Because it refreshes every 24 hours, the customer experience keeps getting richer and fuller, and the depth and breadth of what it can do is improving.”

As the AI service keeps getting better, more operational efficiencies are gained and more resources can be allocated to other parts of the business, he says.

However, he cautions that a lot of effort needs to go in before implementation to get it right — rather than trying to do it piecemeal — and that AI can only answer questions that it has the information for.

Freelance writer and former Gisborne Herald reporter Jack Marshall said he started using ChatGPT at the beginning of this year, and it was now an indispensable tool for him in his writing and work.

“For example, I might use it to summarise a hundred-page document into a single page, saving me hours of reading. Other times I use it to check my own work to ensure I’ve written something well or haven’t missed anything. It saves me time and allows me to focus on the creative aspects of my work.

“Using generative AI is like heading into a workshop with a load of wood. What comes out is down to your imagination and abilities. (Recently) I made ChatGPT be an interviewer and drill me with questions for a scholarship interview.”

Mr Marshall also pointed to the risk of AI “hallucinations”.

“This occurs when the AI can’t generate a meaningful response to a given request, and it may produce inaccurate or nonsensical content instead. You have to remember these apps don’t actually understand anything. They are just paraphrasing information they’ve digested.

“If they haven’t read about a topic you’ve asked about, they’re liable to make something up instead.

“AI is a fantastic tool for summarising text, but it’s no good at writing original content.”

Gisborne law firm Woodward Chrisp warns there are “plenty” of legal risks associated with AI.

“There are several legal considerations that New Zealand businesses should keep in mind before implementing or using artificial intelligence (AI) technologies,” partner Adam Simperingham said.

“First and foremost, businesses must adhere to New Zealand’s privacy laws — such as the Privacy Act 2020, which requires organisations to handle personal data responsibly. AI systems that process personal information must comply with these laws to protect individuals’ privacy rights. It is important to remember that when you ask a question using AI, your question goes into the public domain. So you need to be careful not to disclose any private or confidential information in your questions.

“Additionally, intellectual property issues can arise. Businesses should clarify ownership of AI-generated content, and establish clear agreements with developers and data providers.

“Lastly, cyber-security is vital as AI systems are susceptible to hacking and data breaches. Firms must bolster their security measures to protect sensitive AI data and customer information.

“In conclusion, while AI offers great potential for businesses in New Zealand, navigating the legal landscape is vital to avoid legal pitfalls. Adhering to privacy laws, safeguarding intellectual property and enhancing cyber-security are all crucial steps to consider when implementing or using AI in the Kiwi business landscape.”

Auckland eCommerce integration company Convergence’s managing director Mark Presnell warned all New Zealand companies that their intellectual property was at risk when staff were allowed to use artificial intelligence unchecked.

“Every company offers a point of difference because that is core to the value they add. Using AI could compromise their differentiation.”

Presnell said New Zealand companies were at a pivotal point with regards to artificial intelligence.

“There’s a slow, creeping progression, and the boundary of what is inside and outside the business must be clarified. When employees unwittingly use AI to solve directly related problems, they potentially put the company, and by extension their jobs, at risk.”

He suggested three tips to protect IP.

1. Define Your Intellectual Property

Business owners must educate their teams on what constitutes the company’s IP and define what needs protection. This clarity is the first step in safeguarding your assets.

2. Establish AI Policies and Processes

Implementing robust AI policies and processes is imperative. This includes updating employment agreements to explicitly address the use of AI in conjunction with confidential information.

3. Secure AI Applications:

Identify specific applications of AI in your business and build relevant security parameters around them. This might involve running AI platforms internally with controlled external communications.