Skip to content Skip to footer

8 Data Privacy Considerations for Businesses Adopting AI

8 Data Privacy Considerations for Businesses Adopting AI

Concerns with data privacy are increasing as small businesses adopt artificial intelligence (AI) models. Companies might risk personal privacy to feed computers data, and collecting and processing massive amounts of information brings ethical questions into the equation. New concerns arise, and organizations must deal with them, weighing data protection against convenience to find a happy medium.

The battle to ensure these details remain private in a world filled with ever-increasing analytics requires enterprises to be on top of IT and security issues as they adopt AI for various processes. Try these methods to put a business ahead of cybersecurity concerns.

1. Minimize Data Collection

A 2023 survey of founders, executives, and employees in the tech industry found approximately 49% use AI and ML tools for their brands. Although most leaders saw the need to utilize AI to grow, many needed clarification about the impact of the tools. Twenty-nine percent of those who hadn’t adopted AI mentioned ethical and legal concerns, while another 34% worried about security issues.

Companies can reduce worry from customers and internally by limiting the data gathered. Stick to only what’s necessary to operate. While additional knowledge may help with marketing, organizations must weigh the pros and cons before asking for more details.

2. Remain Transparent

People are still learning how AI fits in with everyday living, so be open about how the brand utilizes AI and the information fed to the system. Customers should be able to opt out of any data collection they feel uncertain about.

Regulations like the General Data Protection Regulation (GDPR) Act require brands to have a privacy policy. It should state why the business collects information, what it does with it, and how it disposes of it when it is no longer needed. Any organization doing business with a member of the European Union falls under the GDPR and should comply.

3. Clean Data Frequently

Create policies on how often to clean and validate data, removing redundancies or inconsistencies. Verify the information is clean before uploading it to customer relationship management tools.

Delete any data that is no longer necessary while following corporate policies on how long to retain customer information. All knowledge collection and retention should adhere to industry standards.

4. Add Encryption and Multi-Factor Authentication

Cybersecurity is a huge concern with advances in AI technology. Enterprises are using computers to sort data, but cybercriminals are utilizing AI to figure out how to hack into new systems.

The IT department should add encryption methods like secure socket layers and encourage anyone logging into the system to do so through multi-factor authentication. Including firewalls and anti-virus software, and creating awareness helps prevent hackers from breaking in and stealing sensitive data.

5. Avoid Phishing Attacks

Phishing is the most frequently reported online attack currently. This threat typically comes from a message or email that looks official, potentially appearing as a request from the CEO or a fellow staff member. When the person clicks on the link and “logs in,” the hacker collects keystrokes, and now has usernames and passwords to break into the system.

Creating strong company-wide policies against clicking on links in messages is an excellent start to preventing hackers from gaining access via phishing. Adding the multi-factor authentication mentioned above adds another layer of protection.

6. Train Employees

Businesses adopting AI should thoroughly train employees in best practices. When working with personal data, they must know what to delete and save and how to protect customers from being exposed.

Some industries collect sensitive information, and may fall under local or organizational regulations. For example, health care professionals must follow HIPAA and want patients’ confidence that results are secure.

7. Update Software

Keep software updated to avoid breaches. AI taps into the power of machine learning, meaning the algorithms are constantly evolving and developing to serve business’ needs better. Automate installing software updates, as many offer security patches to the most frequent hacking attempts.

8. Build Awareness of Generative AI

In addition to training employees, brands utilizing AI should introduce customers to how and where they use data. The options for third-party software are vast, with some collecting more data than others to teach the machine.

People have a right to know enterprises use the content they create and the data they share. Build transparency while teaching clients why the company shares data and how they can opt out of including their private details in the system.

Invest in Monitoring and Audits

Businesses are likely to implement more AI and ML over time, and cybercriminals will find new ways to access backdoor data entry points as technology advances. It’s crucial that businesses invest in regular monitoring and audit systems for weaknesses. Frequent deletion of no longer needed data and building awareness will mean the difference between secure AI adoption and data breaches.

Go to Top