As attorneys specializing in small business law, we understand the importance of staying up-to-date with the latest technologies and how they can impact you small businesses; and, MAN did ChatGPT shake up (and continues to shake up) the legal world! Let’s explore what Chat GPT and AI are, how they can be used in you small businesses (ethically), and what top legal considerations you MUST keep in mind.
- So, What is Chat GPT and AI?
Chat GPT and AI (Artificial Intelligence) are technologies that use algorithms to process and analyze data, learn from that data, and make predictions or recommendations based on that learning. These technologies have the ability to analyze vast amounts of data much faster and more accurately than humans, which can be incredibly useful for your small business.
- How can Chat GPT and AI be used in my Small Business?
There are SO many ways that Chat GPT and AI can be used in your small businesses. We could designate an entire blog series solely to the ways your small business can use the technologies. This is great for your business on an efficiency and marketing standpoint, but as discussed below, create some real legal concerns. Chat GPT though can be used to create chatbots that can help answer customer questions or provide customer service. AI can also be used to analyze customer data and make predictions about customer behavior, which can help you business make further informed decisions about marketing and product development. Additionally, Chat GPT and AI can be used to automate certain tasks, such as scheduling appointments or sending out email reminders. The ways are endless…
- Top Legal Considerations for Your Small business When using Chat GPT and AI
While Chat GPT and AI can be INCREDIBLY useful for your business, there are many legal considerations that are just now coming to the surface. So, let’s keep ahead of the curve.
To start, if you are using Chat GPT or AI to collect customer data, you need to make sure that you are doing so in compliance with relevant privacy laws, such as the GDPR or CCPA. The GDPR (General Data Protection Regulation) is a European Union regulation for data protection and privacy, which also addresses the transfer of personal data outside the EU and EEA areas. It’s aimed at giving individuals control over their personal data and simplifying the regulatory environment for international business. The CCPA (California Consumer Privacy Act) is a state statute intended to enhance privacy rights and consumer protection for residents of California, USA. It gives California residents the right to know what personal data is being collected about them, to delete that data, and to opt-out of the sale of their personal data. Both set a precedent for data protection laws, focusing on protecting the privacy and rights of consumers.
Additionally, if you are using Chat GPT or AI to make hiring decisions, you need to make sure that you are not discriminating against any protected classes of people. This means that the AI must comply with anti-discrimination laws such as the U.S. Equal Employment Opportunity Commission (EEOC) guidelines, which protect against discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information. It is important to regularly audit AI tools to check for biases and take corrective measures if necessary to prevent discriminatory practices.
It is also important to make sure that you are using Chat GPT and AI in a way that is transparent and ethical. For example, if you are using AI to make decisions about creditworthiness or insurance rates, you need to make sure that the algorithms you are using are fair and not biased against any particular group. This can also be against regulations such as the U.S. Fair Credit Reporting Act (FCRA), which ensures accuracy and privacy of information used in consumer reports, and potentially against anti-discrimination laws if the algorithms result in biased outcomes. Ensuring AI fairness is essential to comply with these laws and to uphold ethical standards.
Chat GPT and AI can be one of the MOST useful tools for your small business. However, it is a tool and, and such, it is important to make sure you use these technologies in a way that is legal, ethical, and transparent. If you have any questions or concerns about using Chat GPT or AI in your small business, it is important to consult with an experienced attorney who can help guide you through the legal considerations. Here at Bounds Law, we do just that. Reach out HERE!
Also, interested in our Founder, Destiny, coming to talk to your group an even more depth about the ever-changing legal landscape of AI and ChatGPT? She commonly talks on this topic. Find more info HERE.
