Gartner, a global leader in research and advisory services on information technology, recently identified six risks associated with chat-based language model, or ChatGPT, tools that legal and compliance leaders must evaluate. According to Ron Friedmann, senior director analyst at the Gartner Legal and Compliance practice, “failure to do so could expose enterprises to legal, reputational and financial consequences.”
The first risk that should be considered is that of fabricated and inaccurate answers being generated by ChatGPT. As this tool is also prone to hallucinations that include fabricated answers, guidance should be issued requiring employees to review the ChatGPT output for accuracy and usefulness before being accepted.
Another concern when using ChatGPT is data privacy and confidentiality. Sensitive, proprietary, and confidential information inputted into the system can be incorporated into responses for users outside the enterprise. To prevent this, organizations should set up a compliance framework for ChatGPT use and prohibit the inputting of any sensitive data into it.
Model and output bias is also a potential issue when using ChatGPT, as existing cases of this have already occurred. Leaders should consider staying up-to-date on laws regarding AI bias and working with experts to ensure the output is reliable.
Intellectual property and copyright risks must also be considered when using ChatGPT, as its output has the potential to violate such protections. Therefore, legal and compliance teams must review any output to ensure it does not infringe on one’s copyright or IP rights.
Cyber fraud risks are also associated with large language model tools like ChatGPT. Bad actors have been known to misuse these tools to generate false information and carry out malicious activities like phishing. To prevent this, organizations must coordinate with cybersecurity personnel to make sure they are informed of this risk.
Lastly, legal and compliance teams must ensure their company properly informs customers that they are interacting with a chatbot when using ChatGPT. Under the California chatbot law, organizations must make clear and obvious disclosures in certain consumer interactions.
EMSNow is a leading online platform for news and information about the enterprise mobility sector and the users who rely on it. The platform covers a broad range of topics, including mobile strategy, enterprise app development, mobile security, and more. EMSNow is owned and operated by ForChannel, LLC, the largest network of digital channels in the world with over 60 brands and over 100 million monthly readers. Ron Friedmann is a senior director analyst at Gartner in the Legal & Compliance Practice, covering topics such as legal operations, legal technology, legal sourcing, and law department management. With over 30 years of experience in legal and technology roles, he provides Gartner clients with advice on structure, strategy, and operational best practices in the law department.
