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The Risks and Preventions of AI in Business: Safeguarding Against Potential Pitfalls.


By THN.
Security risks

Artificial intelligence (AI) holds immense potential for optimizing internal processes within businesses. However, it also comes with legitimate concerns regarding unauthorized use, including data loss risks and legal consequences. In this article, we will explore the risks associated with AI implementation and discuss measures to minimize damages. Additionally, we will examine regulatory initiatives by countries and ethical frameworks adopted by companies to regulate AI.

Security risks #

AI phishing attacks#

Cybercriminals can leverage AI in various ways to enhance their phishing attacks and increase their chances of success. Here are some ways AI can be exploited for phishing:

  • - Automated Phishing Campaigns: AI-powered tools can automate the creation and dissemination of phishing emails on a large scale. These tools can generate convincing email content, craft personalized messages, and mimic the writing style of a specific individual, making phishing attempts appear more legitimate.
  • - Spear Phishing with Social Engineering: AI can analyze vast amounts of publicly available data from social media, professional networks, or other sources to gather information about potential targets. This information can then be used to personalize phishing emails, making them highly tailored and difficult to distinguish from genuine communications.
  • Natural Language Processing (NLP) Attacks: AI-powered NLP algorithms can analyze and understand text, allowing cybercriminals to craft phishing emails that are contextually relevant and harder to detect by traditional email filters. These sophisticated attacks may bypass security measures designed to identify phishing attempts.

To mitigate the risks associated with AI-enhanced phishing attacks, organizations should adopt robust security measures. This includes employee training to recognize phishing attempts, implementation of multi-factor authentication, and leveraging AI-based solutions for detecting and defending against evolving phishing techniques. Employing DNS filtering  as a first layer of protection can further enhance security.

Security risks

With the rapid development of AI, laws, and regulations related to technology are still evolving. Regulation and legal risks associated with AI refer to the potential liabilities and legal consequences that businesses may face when implementing AI technology.

- As AI becomes more prevalent, governments and regulators are starting to create laws and regulations that govern the use of the technology. Failure to comply with these laws and regulations can result in legal and financial penalties.

- Liability for harms caused by AI systems: Businesses may be held liable for harms caused by their AI systems. For example, if an AI system makes a mistake that results in financial loss or harm to an individual, the business may be held liable.

- Intellectual property disputes: Businesses may also face legal disputes related to intellectual property when developing and using AI systems. For example, disputes may arise over the ownership of the data used to train AI systems or over the ownership of the AI system itself.

Countries and Companies Restricting AI#

Regulatory Measures:#

Several countries are implementing or proposing regulations to address AI risks, aiming to protect privacy, ensure algorithmic transparency, and define ethical guidelines.

Examples: The European Union's General Data Protection Regulation (GDPR) establishes principles for AI systems' responsible data usage, while the proposed AI Act seeks to provide comprehensive rules for AI applications.

China has released AI-specific regulations, focusing on data security and algorithmic accountability, while the United States is engaged in ongoing discussions on AI governance.

Corporate Initiatives:#

Many companies are taking proactive measures to govern AI usage responsibly and ethically, often through self-imposed restrictions and ethical frameworks.

Examples: Google's AI Principles emphasize the avoidance of bias, transparency, and accountability. Microsoft established the AI and Ethics in Engineering and Research (AETHER) Committee to guide responsible AI development. IBM developed the AI Fairness 360 toolkit to address bias and fairness in AI models.

Conclusion.#

We strongly recommend implementing comprehensive protection systems and consulting with the legal department regarding the associated risks when utilizing AI. If the risks of using AI outweigh the benefits and your company's compliance guidelines advise against utilizing certain AI services in your workflow, you can block them using a DNS filtering  service from SafeDNS. By doing so, you can mitigate the risks of data loss, maintain legal compliance, and adhere to internal company requirements.

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