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Companies venturing into the artificial intelligence (AI) sector are at a watershed. In 2023, AI startups collectly raised close to $50 billion, while global enterprise spending on AI, including generative AI software, related hardware, and IT and business services, is projected by IDC to reach north of $150 billion in 2027.
This momentum underscores the significance of AI, which is anticipated to contribute a whopping $15.7 trillion to the global economy by 2030, as projected in PwC’s Global Artificial Intelligence Study. With the increasing integration of AI into various firms’ operations and decision-making, especially Large Language Models (LLMs), the need to safeguard sensitive information has become increasingly urgent.
Nonetheless, the effective implementation of AI privacy policies, whether a generic model or a vertical approach, remains challenging. As companies utilize AI to optimize operations, it is crucial to understand the complexity of the global regulatory landscape and ethical concerns to ensure data protection.
This article explores three essential tips to help companies effectively address the challenges of promoting innovation while strategically leveraging AI’s capabilities in the evolving global landscape for sustained progress and business success.
Related: 3 Ways AI Can Transform Your Business Now
1. Keep track of regulatory shifts
2023 has been a monumental year for AI governance; nations and economies worldwide have issued or are en route to drafting AI regulations: the European Union, China, and the United States, for instance, have all released AI-related regulations in 2023.
The three major economies have chosen different approaches to AI regulation, reflecting the lack of consensus in this field. While certain economies may prioritize risk control and privacy protection, others might be inclined toward leveraging AI to promote economic growth and tackle pressing societal issues.
As a result, multinational tech conglomerates would face divergent regulatory landscapes as they operate globally. Ensuring companies’ AI applications comply with local market regulations is crucial; firms should take careful consideration of the differentiated regulatory landscapes across various regions to strike a cautious equilibrium between innovation and privacy.
Successfully navigating this intricate landscape requires companies to monitor the evolving regulations in relevant markets closely. Proactively updating internal policies and operational guidelines is imperative, ensuring seamless alignment with the latest effective rules and standards. Conducting a meticulous legal risk analysis before launching products and services is also essential.
At the same time, the establishment of robust AI governance and risk management frameworks in companies, complemented by the implementation of internal mechanisms for risk alert and accountability, will ensure compliance and foster innovation and responsible business practices.
Related: The Top 4 Most Bankable AI Skills You Need to Succeed in 2024
2. Consider ethical concerns
The use of AI in daily life could potentially lead humankind to two divergent results: a more diverse, inclusive world or a more polarized, divisive one. Achieving an equilibrium between embracing scientific breakthroughs and tackling ethical dilemmas is crucial as society wrestles with the potential advantages and difficulties arising from the extensive integration of artificial intelligence.
The 2023 AI Index Report by Stanford University provides insight into the extent of AI’s influence, indicating a nearly 6.5-fold increase in references to AI in legislative proceedings worldwide since 2016. The report is based on a review of parliamentary records from 81 countries and signifies that both businesses and political leaders are confronting new risks amid this powerful technological wave.
Hence, it is crucial to recognize the concurrent rise in ethical issues among the global population. Additionally, the AIAAIC database reveals that since 2012, there has been a 26-fold surge in ethical dilemmas related to AI concerning a variety of topics, such as bias in algorithms and gender representation, shedding light on a complex environment where the benefits of AI coexist with an increasing awareness of misuse possibilities.
The remarkable surge in AI use is notably apparent as artificial intelligence becomes further incorporated into many domains of our lives, encompassing healthcare, banking, education, and other sectors. Nevertheless, this integration also intensifies the requirement for meticulous oversight and surveillance to guarantee the responsible utilization of AI.
Hence, It has become imperative for businesses and other stakeholders to join forces in ensuring that AI use follows a nondiscriminatory and nonbiased principle and that the public is well-educated and informed before making active use of AI.
3. Use AI for good
Just as with the rise of large language models today, similar to other significant technological advancements in history, including the advent of the internet, there was a comparable apprehension that this emerging technology might overshadow and potentially replace established mediums like television, magazines, and radio.
However, as we have seen over time, despite initial fears, technologies like the internet have not only coexisted with but also significantly enriched these traditional forms, enhancing their scope and impact rather than rendering them obsolete.
Thus, the core of this apprehension is rooted in the fear of disrupting the pre-established order, which is equally pertinent to businesses. Consequently, for businesses, the critical issue today is ensuring the “Controllable, Customizable, Deliverable” of Large Language Models, preserving the balance between innovation and the maintenance of existing systems, privacy and safety.
AI companies, including Nasdaq-listed Xiao-I, have been pioneering the implementation of LLMs in business scenarios to create a commercialization path for B2B customers while actively ensuring compliance with a variety of factors in practice to close the potential loopholes. Some of the practices include storing data locally and ensuring adherence to ideology, laws, ethics, and data security at national and enterprise levels.
To bring the business to the next level, AI-based LLMs should adapt to customers’ specific requirements by going beyond simple customization of the model to include personalized material, elements, and scenarios, enabling enterprises to align the model with their needs perfectly for further value creation.
