How to Use AI Safely as a Small Business

More small business owners have continued to take the initiative on integrating artificial intelligence (AI) into their digital operations. AI automation offers a competitive edge in research, content creation, and customer management.

It offers fast business solutions in exchange for customer and operational data. It might seem like a fair deal, but there’s a lot you don’t know about how AI collects, interprets, and uses your data.

Data privacy, or lack of it, can have real-life consequences for your business. Thus, you must understand the impact of using AI tools and indiscriminately approving permissions. Let’s check some ways to use AI safely as a small business.

4 Real Risks AI Poses to Your Small Business

  1. Increased Data Breach Risk

    AI tools can simplify small business operations like accounting, content creation, customer management, and employee welfare. For instance, they can predict trends, automate responses, and even plan work roosters.

    However, to provide business-specific results, most AI tools require information like customer, employee, and operation data. You’ll need cyber solid protection for such data. However, many small businesses can’t invest in cybersecurity to match their AI reliance.

    That puts their data at a high level of risk for breaches. If your data is tampered with, it can open a path to distrust, fines, and even lawsuits. No business wants that as it can affect their reputation and development.

  2. Preprogrammed AI Algorithm Bias

    Developers train AI tools to analyze, recommend, and act based on specific data. While the discovered pattern can be useful to predict trends, it can also result in discrimination against certain races or groups.

    For instance, an AI hiring tool introduced to a male-dominated space might classify female applicants as unqualified based on the existing data. These biases can also affect customers’ experiences and taint the business’ reputation.

  3. Overdependence on AI

    AI’s automation helps small businesses in areas that involve repetitive tasks like responding to customer chats and emails. Its efficiency in these areas may shift human resources to other tasks.

    However, customer requests can sometimes be complicated, and if there’s no human agent to take over, it can lead to frustrated customers and bad reviews.

    Overdependence can also affect the staff work culture. It can encourage employees to be laidback because they can automate their processes. It can also trick the business into thinking they need less staff than they have.

    Human oversight is important. Therefore, small businesses must balance AI and human input.

  4. Data Regulations

    The government places a lot of responsibility on businesses regarding their AI usage. Let’s look at California, where the California Consumer Privacy Act (CCPA) has strict rules on how businesses may collect and process customer details.

    These Data policies are potential gateways to lawsuits and fines for small businesses. They must ensure that all AI tools comply with the local laws of their operation zones.

How Your Data Can be Used (Why You Should Care)

  1. AI Model Training

    AI systems constantly learn to improve their performance. They achieve this with the data that users—including small businesses—feed them. That’s how they’re able to provide better results every time.

    This raises concerns about the privacy and confidentiality of your business information. Most AI platforms state this in their terms of service, so read them well before you consent.

  2. Targeted Adverts

    Many advertising platforms gather information from algorithms to create personalized adverts. They use AI to track users’ digital footprints, such as their engagements and preferences.

    While these steps are effective, they also invade the consumer privacy. Small businesses must be careful of the information they permit AI ad systems to access to avoid breaking privacy guidelines that protect consumers.

  3. Third-Party Data Sharing

    Some AI platforms use third-party systems for data analysis. In situations like this, your cybersecurity level is irrelevant because the data security is beyond you.

    Sometimes, these third-party systems have weak data security protocols, which makes them easy targets for data breaches. So, always research the partners of an AI tool before you put your business and customers’ information on it.

  4. Data Monetization

    Different companies and individuals require data for things like advertising, market analysis, or phishing attacks. They buy from several sources, including AI platforms. Some AI platforms will sell your data, with or without your consent.

    Therefore, you should only patronize reputable AI platforms that are transparent about their data usage and monetization.

How to Protect Your Data When Using AI

  1. Data Encryption

    Mistakes can happen that will result in your data getting lost or stolen. That’s why you must have strong security measures in place. Data encryption is an effective way to prevent unauthorized data usage and cyberattacks.

    For instance, AI tools with end-to-end encryption will ensure that only you and your customer can access your shared data.

  2. Perform Routine AI Systems Check

    Software systems can always initiate policy changes based on renewed company goals. An example is OpenAI, which started as a free source platform and decided to add premium features, which caused some changes in its terms of service.

    Other AI systems are not exempt from such U-turns. Therefore, you must regularly check for updates that can impact data policies and security.

    You may also use these checks to spot faulty or biased patterns in your AI systems.

  3. Share Only Necessary Data

    As a small business, you should share only the required data with AI systems. If possible, try to maintain the anonymity of your users. Sometimes, what seems like an insignificant omission may be the difference between your data being useful or useless to hackers.

    For instance, a business can share only a customer’s preference and exclude other demographic and psychographic data. Small businesses must source for AI systems that allow them to choose which data to provide.

  4. Use Secure Cloud-Based AI

    Before entrusting your data to an AI system, research their data storage process. It should also have key security features like a two-factor authenticator, backups, and data encryption.

Can An AI System Make Mistakes?

Yes, an AI system can make mistakes even after you provide the required data and context. The quality of answers depends on the data that trained the AI system. You should always review responses you get from AI to ensure they are error-free.

How To Pick the Right AI Tools for My Small Business?

Before you select an AI tool for your small business, consider your business needs. Also, consider the cost of implementation and integration with your existing systems.

Remember to check the reviews, terms of service, and third-party partners.

Is It Safe to Use Free AI Tools for A Small Business?

There are reputable companies that provide free AI tools. For instance, Grammarly and ChatGPT provide free content generation options. Google has also introduced AI to workspace tools like Google Docs and Sheets.

However, ensure you do due diligence on data gathering and usage by any AI company before subscribing.