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ThePromiseandPeriloftheAIRevolution:ManagingRisk

?2023ISACA.AllRightsReserved.

Risk

2THEPROMISEANDPERILOFTHEAIREVOLUTION:MANAGINGRISK

CONTENTS

4

WhenCorporateWisdomMeetsArtificialIntelligence

4

TheCurrentStateofArtificialIntelligence

6

ToAIorNottoAI

6

IdentifyingAIRiskandReward

7

ConductinganAIBenefitAnalysis

8

IdentifyingAIRisk

9/SocietalRisk

10/IPLeakageandInvalidation10/InvalidOwnership

11/CybersecurityandResiliencyImpact11/WeakInternalPermissionStructures11/SkillGaps

12/Overreactions

12/IntendedandUnintendedUse12/DataIntegrity

13/Liability

14

AdoptingaContinuousRiskManagementApproach

14/StepOne:IdentifyRisk

14/StepTwo:DefineRiskAppetite

15/StepThree:MonitorandManageRisk

15

BuildingAISecurityPrograms:EightProtocolsandPractices

15/One:TrustbutVerify

16/Two:DesignAcceptableUsePolicies16/Three:DesignateanAILead

16/Four:PerformaCostAnalysis

17/Five:AdaptandCreateCybersecurityPrograms

17/Six:MandateAuditsandTraceability18/Seven:DevelopaSetofAIEthics

18/Eight:SocietalAdaptation

19

ProsperinginanAI-PoweredFuture

21

Acknowledgments

?2023ISACA.AllRightsReserved.

3THEPROMISEANDPERILOFTHEAIREVOLUTION:MANAGINGRISK

ABSTRACT

Itisthepremiseofsomanysciencefictionmovies:technologysurpasseshumanintelligence,wreakshavocand

ultimatelytakesoverhumankind.Whilethatmoviehasnotyethappenedinreallife,therecentreleaseofChatGPT

feltliketheopeningcredits–andthatisjustoneofmanygenerativeartificialintelligence(AI)tools.Nowhigh-profile

techleaderssuchasAppleco-founderSteveWozniakandTeslachiefexecutiveofficer(CEO)ElonMuskareamongthoseaskingcompaniestoholdbackon“giantAIexperiments”1whiletheindustryconductsariskassessment.Theiropenletterstatesthatlarge-scaleAIprojects“canposeprofoundriskstosocietyandhumanity”withoutoversightandintelligentmanagementandaskedforatemporarypauseonfurtherdevelopment.TheletteralsostressedtheneedforgovernancesystemsandanewregulatoryauthoritydedicatedtoAI.

Still,otherindustryleadersbelieveboththebenefitsandrisksofgenerativeAIhavebeenexaggerated2–thatwearedealingwithlimitedtechnologiesthataren’tnearlyashelpfulasourbiggesthopesoraspowerfulasourworstfears.Butoneconclusioniscertain:AIisalreadysweepingthroughourbusinessesandourworld,andtheneedforchiefinformationsecurityofficers(CISOs),ITriskmanagers,executivesandITseniormanagementtokeeppacewiththerapidlyevolvingrisklandscapeisurgent.

1F,“PauseGiantAIExperiments:AnOpenLetter,”22March2023,

/open-letter/pause-giant-ai-experiments/

2Rundle,J.;“CybersecurityChiefsNavigateAIRisksandPotentialRewards,”TheWallStreetJournal,25May2023,

/articles/

cybersecurity-chiefs-navigate-ai-risks-and-potential-rewards-9138b76d

?2023ISACA.AllRightsReserved.

4THEPROMISEANDPERILOFTHEAIREVOLUTION:MANAGINGRISK

WhenCorporateWisdomMeetsArtificialIntelligence

Justmonthsago,itwashardtoimaginethatprofession-alsfromeveryindustrywouldturntooneapplicationtogeneratelegalargumentsandadvice,computercode,

Shakespearean-stylesonnetsandclinicaltreatment

plans.YetmillionsofusershavequicklyacclimatedtotheconvenientnewworldofgenerativeAItoolssuchasOpenAI’sChatGPT3andGoogle’sBard.4Despiteitsim-mensesuccessandmyriadofuses,mostusersarenotfamiliarwiththedangersofgenerativeAI.Consequently,ascompaniesleapintoawhite-hotracetodesignandutilizeAItools,manyriskmanagementeffortsarefallingbehind.

Theefforttoestablishanduseemergingtechnology

shouldnotcomeattheexpenseofriskmanagement.Unfortunately,thisisapatterncommontomostnewtechnologies.Thosewhoremembertheadventof

smartphones,3DprintingortheInternetofThings(IoT)

mayassumetheemergenceofAIisonparwiththosebreakthroughs.ButitismoreakintothecreationoftheautomobileortheInternet:ablazeofinnovationthatwillengulfeveryindustry.

Theefforttoestablishanduseemergingtechnologyshouldnotcomeattheexpenseofriskmanagement.

AIushersinafoundationalshiftinhowweengagewithtechnology.Thetraditionalguardrailsandsecurityproto-colsthathaveservedusuptothispointarenowtoacer-tainextentinadequate,asgenerativeAIhasonlygrowninpopularityandinfluence.Newterritoryincludesnew

risk,andunlikepreviousquantumleapsintechnology,businesseslookingforavoiceofauthorityareinsteadfindinguncertaintyabouthowtothoughtfullymaximizeAIvaluewhiledeftlyminimizingrisk.

TheCurrentStateofArtificialIntelligence

DespiteAI’sabilitytomimichumanthoughtpatternsandspeech,noneofitissentient.Mostofwhatiscommon-lyreferredtoasAIisactuallycomprisedofmachine

learningtechniquesorlargelanguagemodels(LLMs).

Forexample,afterbeingfedadatasetof300billion

words,5ChatGPTconsumedbooks,websites,WikipediaandothersourcesandwastrainedusingReinforcementLearningfromHumanFeedback(RLHF),withthefeed-backimprovingitsresponses.BardwastrainedinsimilarwaysbutalsodrawsitsinformationfromtheInternet.

Megatron,6ajointventurebetweenMicrosoftandNvidia,

wastrainedthroughnovel“parallelism”techniquesandcouldsoonsurpassChatGPTthrougharadicalincreaseincapabilities.Thetechniquesusedtodevelopthese

toolsraisequestionsaboutwherethedatausedinLLMsiscomingfromandwhethertotrustthisdatatobeusedtotrainAI-enabledtools.

WhileaprivatecompanylikeChatGPThasclaimedthelion’sshareofthemediaspotlight,startupslike

ChatSonic,Jasper,WordtuneandothersarehelpingusersthinkofAInotasonetoolbutasanewtypeof

3O,“IntroducingChatGPT,”30November2022,

/blog/chatgpt

4,“TryBard,anAIexperimentbyGoogle,”

/

5Iyer,A.;“BehindChatGPT’sWisdom:300BnWords,570GBData,”AnalyticsIndiaMagazine,15December2022,

/

behind-chatgpts-wisdom-300-bn-words-570-gb-data/

6D,“Megatron-TuringNaturalLanguageGeneration,”NVIDIADeveloper,3October2022,

/mega

-tron-turing-natural-language-generation

?2023ISACA.AllRightsReserved.

5THEPROMISEANDPERILOFTHEAIREVOLUTION:MANAGINGRISK

functionaltechnology.ThisisinpartthroughgenerativeAIpre-trainingthatusesinformationcontributionsfromtheprivateandpublicsectors.Thesecompaniesare

revolutionizingthewayweinteractwithAIbyprovidingarangeoftoolsandservicesthatcatertothediverseneedsofusers.Inresponsetouserfeedback,creatorsareaddingsecuritycontrols,textclassifiersandotherfeaturestobecomemorecompetitiveanduseful.

Forinstance,Bardisdesignedtoalsoworkasapersonalassistantandcancompletetasksrangingfrombook-

ingaholidaytocreatingamealplan.ChatGPTisbeingintegratedintoMicrosoftOffice365asMicrosoft365Copilot.7Soon,anyoneusingMicrosoftWord,ExcelorPowerPointwillbeabletouseCopilottocreateanewpresentation,developgo-to-marketstrategiesordistilleventhemostcomplexfinancialdataintoareport.

ThespeedofAIevolutionhasdazzledeventhemost

seasonedoftechveterans.NearlyeveryweekbringsanewpronouncementonAI’sadvantages,dangers,limita-tionsorpotential,withoftencontradictoryconclusions.ItisnotasurprisethatmanybusinessleadershaveoptedtowaitfortheAIdusttosettlebeforedesigningaformalbusinessstrategy.Butwhilethismayseemlikethesaf-estpath,adelaycarriesariskofitsown.

Forthisreason,nomatterwhatshapetheAIrevolutiontakes,weknowthatAIisheretostayandthatthesafestandsmartestpathtosecurityistobeginadaptingnow.BusinessleadersshouldassumethatAIisalreadybeingusedwithintheenterprise,asitspopularityhasonly

grownexponentiallywithinthepastcoupleofyears.Anexampleoftheexplosivegrowth8intheuseofChatGPTisshowninfigure1.

FIGURE1:AIUseBreakstheSpeedofSound

November2022

ChatGPTreleased◆

forpublicuse

1.8billionvisits

Day5afterlaunch

Morethan1millionusers

…December2022

April2023

266millionvisits

◆June2023

100millionactiveusers

7Spataro,J.;“IntroducingMicrosoft365Copilot–yourcopilotforwork,”TheOfficialMicrosoftBlog,16March2023,

/

blog/2023/03/16/introducing-microsoft-365-copilot-your-copilot-for-work/

8Ruby,D.;“30+DetailedChatGPTStatistics–Users&Facts,”DemandSage,7July2023,

/chatgpt-statistics/

?2023ISACA.AllRightsReserved.

6THEPROMISEANDPERILOFTHEAIREVOLUTION:MANAGINGRISK

ToAIorNottoAI

Thehorseisheretostay,buttheautomobileisonlyanovelty—afad.9

—AdvicefromMichiganSavingsBanktoHenryFord’slawyerHoraceRackham

Someorganizations,scaredoftheunknown,havetakentoignoringAI’sgrowinginfluence.Others,afraidof

anothertechnologicalgimmick,dismissAIpromisesasmerehype.Butwieldedwell,AItoolscanaugmenthu-manideas,complementbusinessprocessesanddistillcomplexinformationintodigestiblecontent,allofwhichcandrivehigherprofitandperformance.

Fromthewheeltotheautomobile,historyshowsthatanytechnologythatletsusdomorewithlesseffort

hasbeenwildlypopular–asgenerativeAIhasproven.Fromautomatingmundanetaskstogeneratingcreativecontent,generativeAIhasdemonstrateditspotential

toenhanceproductivityandunleashhumancreativi-

ty.Already,someworkersviewusingAIasnormalascheckingemailorpurchasinggoodsonline.ItisonlyamatteroftimebeforeAIisenmeshedwithourpersonalandprofessionallives.

Despiteitsinfiltrationintoalmosteveryfacetofsocietyandculture,somebusinesseshavebannedorrestrictedAIuse.StackOverflow,whichoffersaforumforcodingquestionsandanswers,temporarilybannedChatGPT10becauseofitstendencytogiveincorrectanswersthat

soundconfidentandlegitimate,leadinguserstobe

confusedormisleadwhenlookingforrelevantanswerstotheirquestions.SamsungElectronics,11Apple,12

JPMorganChase13andVerizonCommunications14haveheavilyrestrictedtheworkplaceuseofgenerativeAIoversecurityfears.

Whiletheserestrictionsmakesensegiventhecurrent

ambiguityofAIcapabilitiesandconsequences,most

businessleadersrealizedecisionsregardingthelong-termAIlandscapewillbefarmorecomplexthanasimpleyesorno.IfanenterprisebansAIcompletely,itcouldminimally

riskitscompetitiveadvantageassomeemployees,partners,distributorsandcompetitorsmaybenefitfromit.Evenif

AI-enabledtoolsarenotusedintheenterprise,ignoringthistechnologycanleaveanenterprisemorevulnerabletorisk(e.g.,obsolescence,loweraccesstotoptalent,etc.).

Fromthewheeltotheautomobile,historyshowsthatanytechnologythatletsusdomorewithlessefforthasbeenwildlypopular–asgenerative

AIhasproven.

Forthisreason,seniorleaders,iftheywishtoutilizeAItechnologies,willneedtoensuretherightinfrastructureandgovernanceprocessesareinplaceattheir

organizations.ToaccuratelyunderstandthevulnerabilitiesandadvantagesAIcarries,leadersmustconducta

thoroughriskimpactanalysisthataccountsforthecurrentuncertaintyoftheAIlandscapeanditsfuturepower.

IdentifyingAIRiskandReward

AIispoisedtopermeatebusinessesineveryindustry.Fromsupplyingstudentswithready-madeacademicessaystowritingscriptsforHollywoodstudiosand

analyzingtheflawsinfactoryfloordesigns,AIoffers

benefitstonearlyeveryteam,fieldandorganization.Onacollectiveindustrylevel(andindividualbusinesslevel),

9Bushnell,S.T.;TheTruthAboutHenryFord,TheReilly&LeeCompany,USA,1992

10,“Temporarypolicy:ChatGPTisbanned,”

/questions/421831/temporary-poli

-cy-chatgpt-is-banned

11Cawley,C.;“SamsungRestrictsGenerativeAIUseAfterCodeLeak,”Tech.co,8May2023,

https://tech.co/news/samsung-restricts-genera

-tive-ai-use#:~:text=New%20Policy%20Bans%20Samsung%20Employeesz

12Tilley,A.;M.Kruppa;“AppleRestrictsEmployeeUseofChatGPT,JoiningOtherCompaniesWaryofLeaks,”TheWallStreetJournal,18May2023,

/articles/apple-restricts-use-of-chatgpt-joining-other-companies-wary-of-leaks-d44d7d34?mod=article_inline

13Lukpat,A.;“JPMorganRestrictsEmployeesFromUsingChatGPT,”TheWallStreetJournal,22February2023,

/articles/jpmor

-gan-restricts-employees-from-using-chatgpt-2da5dc34?mod=article_inline

14Moneylife.in,“JPMorganChaserestrictsworkersfromusingChatGPT,”23February2023,

https://www.moneylife.in/article/jpmorgan-chase-re

-stricts-workers-from-using-chatgpt/69948.html

?2023ISACA.AllRightsReserved.

7THEPROMISEANDPERILOFTHEAIREVOLUTION:MANAGINGRISK

leadersmusttakefourimportantstepstomaximizeAIvaluewhileinstallingappropriateandeffectiveguardrails:

1.IdentifyAIbenefits.

2.IdentifyAIrisk.

3.Adoptacontinuousriskmanagementapproach.

4.ImplementappropriateAIsecurityprotocols.

Ifbusinessleadersareabletofollowthesesteps,theyaremuchmorelikelytostrikeagoodbalanceofriskversusrewardasAI-enabledtoolsandprocessesareleveragedintheirenterprises.

ConductinganAIBenefitAnalysis

LeadersandphilanthropistslikeBillGatesforeseea

cornucopiaofAIbenefits,15frombringinghealthcareandeducationtotheunderservedtorectifyingtheimpactsofclimatechange.Forenterprises,potentialadvantagesincludebetterinnovation,efficiency,productivityand

workforceoptimization.CompaniesarealreadylookingtoautomatetaskswithAIandreallocatestafftomorevalue-drivingworkwheretheycan,forexample,focusondesigningaremarkablenewservicelineordevelopingmoreattentiveclientrelationships.

CompaniesthatwishtooptoutofleveragingAI

willmostlikelyfindthemselvesonapathtoobsoles-cence.JustasAIprogramscaptivatedbillionsofusersinmereweeks,thespeedatwhichtheseprogramswillchangemarketsandproductcapabilitiescouldbe

staggering.

EnterprisetitansmayfindthattheirAI-enabled

competitionissmarter,fasterandmorelethalthaneverbefore.Figure2containssomesampleusecases.16

FIGURE2:AIInsecurityComplex—IsAISmarterThanWeAre?

CHATGPTHAS:

PassedWharton’s

MBAexamProvided

complexclinicaltreatmentplans

Produced

creativewriting

work—fromentrance

examessaystosoftwarecode

Passedthe

USMedical

LicensingExam

Passedlawschoolexams

15Gates,B.;“TheAgeofAIhasbegun,”GatesNotes,21March2023,

/The-Age-of-AI-Has-Begun

16Ault,A.;“AIBotChatGPTPassesUSMedicalLicensingExamsWithoutCramming–UnlikeStudents,”Medscape,26January2023,

/viewarticle/987549;

Sloan,K.;“ChatGPTpasseslawschoolexamsdespite‘mediocre’performance,”Reuters,

25January2023,

/legal/transactional/chatgpt-passes-law-school-exams-despite-mediocre-performance-2023-01-25/;

businesstoday.in,“‘NextstepforAI’:ChatGPTclearsUSMedicalLicensingExamandWharton’sMBAexam,”BusinessToday,25January2023,

https://www.businesstoday.in/technology/story/next-step-for-ai-chatgpt-clears-us-medical-licensing-exam-and-whartons-mba-exam-367569-2023-01-25;,“AIisPassingMedSchoolExams,”24January2023,

/chatgpt/

;Whitford,E.;“Here’sHow

ForbesGotTheChatGPTAIToWrite2CollegeEssaysIn20Minutes,”Forbes,9December2022,

/sites/emmawhitford/

2022/12/09/heres-how-forbes-got-the-chatgpt-ai-to-write-2-college-essays-in-20-minutes/?sh=313d2f3b56ad;Hutson,M.;“AIlearnstowrite

computercodein‘stunning’advance,”Science,8December2022,

/content/article/ai-learns-write-computer-code

-stunning-advance

?2023ISACA.AllRightsReserved.

8THEPROMISEANDPERILOFTHEAIREVOLUTION:MANAGINGRISK

UseofAIToughensCompetition

CompanyAisanindustryleaderthathasdominateditsmarketfor10yearsonthestrengthofoneflagshipproduct.TheCEOfeelssecureinthecompany’s

position,ascompetitiveintelligenceassuresher

thatnoothercompany’sresearchanddevelopmentapproachesthefunctionalityofCompanyA’sproduct.

ThenanupstartnamedCompanyBusesAItodevelopresearch,designagroundbreakingproduct,create

pricingmodelsandmarketingplans,launchanew

websiteandpopulateonlinesaleschannels–allwithintwoweeks,withminimalworkforce.

Withinjusttwostaffmeetings,CompanyA’sproductbecomesviewedasoutdated,itscustomerbase

decampsforCompanyBandprofitsbegintoplunge.OtherupstartsbegintouseAItodethroneCompanyB.Themarketshiftsradicallywithinafewmonths,withCompanyAfightingandfailingtoremainrelevant.

Toconductanexhaustivebenefitanalysisof

anytechnology,leadersshouldlookbeyond

simplisticadvantagesandrevisitthefoundational

ethosoftheircompanies.Someconsiderationsinclude:

?Whatdoesthecompanydo,andwhydotheydoit?

?Howdotheydoit?

?Howarethecompany’scompetitorsleveragingAItools?

?Whattoolsandtalentsdotheyrelyon,andwhataretheirmetricsforsuccess?

?HowmuchwillinvestmentinAIcost,andhowmuchreturnoninvestmentdoesitdeliver?

?Howconfidentisthecompanythatitssecurityprotocols

andmechanismswillhelpensuredataquality,integrityandconfidentiality(e.g.,intellectualproperty,personalidentifiable

information,etc.)?

?Howmightthecompany’scurrentstrategyandobjectivesevolvewhenAIremovessignificantcostandtalentbarriers?

?WhatcouldstaffandpartnersbringtotheAIinnovationtable?

TheanswerstothesequestionswillprovidearoadmapthatconnectsAIusecasestothecompany’smissionandgoals.

IdentifyingAIRisk

ThepotentialriskassociatedwithAIhasbeenpredom-inantlycharacterizedasafutureconcern.However,

proactivelyaddressingthisriskcanhelptoensurethesafeandresponsibledevelopmentofAItechnologyforuseinthebusiness.

Dr.GeoffreyHinton,commonlyreferredtoasthe“godfa-ther”ofAI,recentlyresignedfromGooglewithaformaladmissionofregretabouthiswork,callingsomeofthe

dangers“quitescary.”17Hisworkonneuralnetworksanddeeplearningprovidedthefoundationforwhatwenow

callAIprogramming;hehasoutlinedwaysfutureAIcapa-bilitiescouldexceedourunderstandingandthereforelimitourabilitytomobilizeorinstituteeffectivesafeguards.

Despitetheimportanceofrecognizingfuturerisk,thepresentstateofAItechnologyandourutilizationpat-ternspresentimmediateriskthatmustbeaddressed.

17Vallance,B.;C.Vallance;“AI‘godfather’GeoffreyHintonwarnsofdangersashequitsGoogle,”BBCNews,

/news/

world-us-canada-65452940

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9THEPROMISEANDPERILOFTHEAIREVOLUTION:MANAGINGRISK

Thisriskcanbebroadlysummedup:AIcanexacerbateanyexistingissues,suchasalackofqualitycontrolor

poordataintegrity,andsystemswillbevulnerableto

cyberattacksandmayintroducenewones.Fromdata

breachestoCEOfraud,AIcanquicklyamplifya“con-

trolled”risktoachaoticlevel,potentiallyderailingan

unpreparedbusiness.SomenotableexamplesofhowAIischangingbusinessfunctionscanbefoundinfigure3.18

HoweverusefulAImightbe,itisnotwithout

inherentrisk.KeyaspectsofAIriskarecoveredinthefollowingsections.

SocietalRisk

AsAIcontinuestoinfluencesociety,wemustremain

criticalofitsaimsandpotentialharm.AIcanbeused

togeneratedisinformationandmanipulatepopulationsandpoliticaldemographicsinaconvincinganddamag-ingway.AIhasalreadybeenusedintheexecutionof

newtypesofcybercrime(e.g.,deepfakes,sophisticatedphishingemails,AIvoicegenerators,etc.).Forexample,afakeimageofanexplosionatthePentagonwaswidelycirculatedonTwitter,causingthestockmarketto

react.19ThisincidentillustrateshowAI-generated

FIGURE3:Disruption,DisplacementandDiscovery—HowMuchWillAIChangeBusiness?

GoldmanSachsestimates

AIcanreplace300million

jobsor28%ofthe

USworkforce

GenerativeAI

Studiesshow:

>SoftwareengineerscancodetwiceasfastusingAItools

>Economistscanbe

10–20%moreproductiveusingLargeLanguageModels

>Callcenteroperatorswere14–30%moreproductive

isthefirst

technology

expectedto

succeed

increativity

andhuman

interactions

GenerativeAI

couldraisethe

globalGDPby7%

18Jones,J.;“AIcouldautomate300millionjobs.Here’swhicharemost(andleast)atrisk,”ZDNET,27May2023,

/article/

ai-could-automate-25-of-all-jobs-heres-which-are-most-and-least-at-risk/;Elder,B.;“SurrenderyourdeskjobtotheAIproductivitymiracle,says

GoldmanSachs,”FinancialTimes,27March2023,

/content/50b15701-855a-4788-9a4b-5a0a9ee10561;

Neil-Baily,M.;E.

Brynjolfsson;A.Korinek;“Machinesofmind:ThecaseforanAI-poweredproductivityboom,”Brookings,10May2023,https://www.brookings.

edu/research/machines-of-mind-the-case-for-an-ai-powered-productivity-boom/;Kalliamvakou,E.;“Research:quantifyingGitHubCopilot’simpactondeveloperproductivityandhappiness,”TheGitHubBlog,7September2022,

https://github.blog/2022-09-07-research-quantifying-github-copi

-lots-impact-on-developer-productivity-and-happiness/;Korinek,A.;“LanguageModelsandCognitiveAutomationforEconomicResearch,”NationalBureauofEconomicResearch,

/10.3386/w30957;

Brynjolfsson,E.;D.Li;L.Raymond;“GenerativeAIatWork,”NationalBureauof

EconomicResearch,

/10.3386/w31161;

Chui,M.;R.Roberts;L.Yee;“GenerativeAIishere:HowtoolslikeChatGPTcouldchangeyourbusiness,”McKinsey,20December2022,

/capabilities/quantumblack/our-insights/generative-ai-is-here-how

-tools-like-chatgpt-could-change-your-business

19Bond,S.;“FakeviralimagesofanexplosionatthePentagonwereprobablycreatedbyAI,”NPR,22May2023,https://www.npr.org/2023/05/22/1177590231/fake-viral-images-of-an-explosion-at-the-pentagon-were-probably-created-by-ai

?2023ISACA.AllRightsReserved.

10THEPROMISEANDPERILOFTHEAIREVOLUTION:MANAGINGRISK

misinformationcanhavefar-reachingconsequences,un-derminingthestabilityoffinancialmarketsanderodingtrustininstitutions.Itisforthisreasonthatmechanismswillneedtobedevelopedforcompaniesandusersto

beabletoweedoutmisinformation.ItisalsouptotheusersofAItoolstoevaluatetheinformationpresentedtotheminordertomitigateitspotentialnegativeimpacts.Furthermore,thepotentialforeconomicupheavalisdi-rectlylinkedtojobdisplacement;itispredictedthatover

300millionjobs20willbeimpactedbyChatGPT

models,withunemploymentaffectingmanyindustriesandprofessions.

IPLeakageandInvalidation

ManyAIusershavethoughtlesslyfedintellectualproper-ty(IP),tradesecrets,competitorcontentandotherdataintoAImodels,whichintroducesarangeofprivacyrisk.Recently,forinstance,Samsungemployeesacciden-

tallyleakedproprietarycompanyinformationbyusingChatGPT.21Anotherexamplecouldinvolveapricingandcommoditiescompanythatwantstokeepitswholesalepricesconfidential.

However,iftheyallowemployeestoutilizeAItools,

thatconfidentialinformationcouldbecomepublicifanemployeecopiesandpastesitintoanAIprogram.Addi-tionally,theaforementionedMicrosoftCopilotwillscourinternalcompanydataonSharePoint,Excelspread-

sheets,Slack,emails,TeamsmessagesandOneDrive,potentiallysharingprivateandsensitivedata.

Forthisreason,somecompanieslikeAmazonhave

warnedemployeesnottosharesensitiveinformationwithChatGPT.22Still,manymorecompanieshavenosuchpoliciesorwarnings,whichshouldincludeaclear

definitionofwhatthecompanydeemssensitivein-

formation.Thepoliciesshouldalsoensurealignment

withemployeeswhomayotherwisebeoblivioustothecopyrights,trademarksandsensitiveinformationtheyaresharingwithanenormousdigitalrepositorythatcanshareitwithothers.

Itshouldalsobementionedthatdisgruntledemployeeswhorealizetheimplicitharmsofsharingthisinforma-tionmaypurposefullyfeedtheAItooldatatopotentiallyharmthecompany’sreputation.Employeesinserting

informationintoAIapplicationscouldinvalidatepatentsandotherIPasIPprotectioniscontrolledbycomplexlaws.Forinstance,ifacompanyfailstoprotectitstradesecretsadequatelybecauseofemployeenegligence,itmayforfeitthelegalprotectionsaffordedtotheconfi-dentialinformation.

InvalidOwnership

AnycompanyusingAItocreateoutput—suchasamar-ketingtagline—mustguaranteeitistrulyoriginalIPandnotaderivativeofanotherperson’swork.23Ifnot,thesebusinessesmaydiscovertheirownershipofthenew

assetsisinvalid.Further,theUSCopyrightOfficehas

rejectedcopyrightsforsomeAI-generatedimages,24de-pendingonwhethertheywerecreatedfromtextpromptsoriftheyreflectthecreator’s“ownmentalconception.”

Invalidownershipcouldalsooccurif,forexample,awritercopyandpastesalinktoanadmirablepieceofcompetitorcontentasinspirationintoanAItool

andisgivenbackhalf-plagiarizedcontent.25Invalid

ownershipclaimsregardingAIcanultimatelyleadtolegaldisputesandadverselyimpactanenterprise’sreputation.

20OpcitJones

21Maddison,L.;“SamsungworkersmadeamajorerrorbyusingChatGPT,”Techradar,4April2023,

/news/samsung-work

-ers-leaked-company-secrets-by-using-chatgpt

22Sengupta,A.;“AmazonwarnsemployeesaboutChatGPT,saysdonotsharesensitiveinfowithchatbot,”IndiaToday,27January2023,https://www.indiatoday.in/technology/news/story/amazon-warns-employees-chatgpt-do-not-share-sensitive-info-with-chatbot-2327014-2023-01-27

23McKendrick,J.;“WhoUltima

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