Artificial intelligence (AI) is rapidly becoming a valuable tool for small businesses around the world. It offers exciting possibilities for improving efficiency and innovation, including:
- Chatbots and virtual assistants to handle customer queries
- Content generation for blogs, social media, and email marketing
- Data analysis to uncover trends and improve decision-making
- Automated invoicing and bookkeeping
- Product recommendations and personalisation
However, as the artificial intelligence landscape in Australia grows, so does the legal landscape! In this article, we’ll outline key legal considerations to keep in mind when using AI in your small business.
1. Intellectual Property Risks
When you use AI to create text, images, or code, ownership of the output can be murky.
Many platforms retain rights over the content they generate, or limit how it can be used commercially. Before relying on AI-generated materials, check the platform’s terms of use and consider whether you need legal advice to protect your intellectual property or determine if the platform is suitable for your purposes.
Aside from the platforms, it might also be difficult to establish copyright over AI-generated visual designs and text. This means that it can be tricky to enforce your rights to content if copycats emerge!
2. Privacy, Data and Confidentiality
AI tools often require data input to function effectively. When you input data, it helps train the model, but it also may create avenues for personal and sensitive information to leak. Data entry and client communication are top uses for AI in small businesses, but it’s essential when doing so, you:
- Avoid entering personal or sensitive information unless you’re certain it’s secure and compliant with privacy laws.
- Disclose your use of AI in your business’s terms and conditions, especially if it’s used to automate decision-making that affects customers (e.g. loan approvals, hiring decisions). Transparency builds trust among your client base and helps you stay compliant with the Australian Privacy Principles (APPs) under the Privacy Act 1988. You can find out more about the APPs here.
3. Misinformation and Biases in AI
AI isn’t perfect, and its output will depend on the quality of its training data. Without training the model for your business’ specific needs, it can produce inaccurate or misleading information and may reflect biases from miscellaneous training data.
To protect your business and reputation:
- Always review AI-generated content before publishing or acting on it.
- Avoid using artificial intelligence for sensitive decisions without human oversight.
- Train your model carefully to suit your business needs and reduce bias.
- Have tailored terms and conditions that protect you from liability for certain use of AI.
What’s Next?
Before integrating artificial intelligence into your business, it’s best to consult a lawyer who can help you:
- Review your terms and conditions to ensure proper disclosure of AI use
- Establish internal procedures for using AI responsibly, including training models and reviewing outputs
- Stay informed about evolving regulations, including proposed laws around AI transparency and accountability
By understanding the risks and taking proactive steps, you can harness AI’s potential while protecting your business and your customers. For help with integrating artificial intelligence into your business practices, contact us for a free, no-obligation chat.
