Artificial Intelligence is rapidly changing the way we live and work, and its applications are wide-ranging and diverse.

Disclaimer: this article was written by ChatGPT in response to the prompt “Please write a 1000 word publication on the cyber risks associated with AI from a legal perspective“. This article has been edited by Lavan.

Artificial Intelligence (AI) is rapidly changing the way we live and work, and its applications are wide-ranging and diverse. While AI offers numerous benefits, it also presents new and complex cyber risks that require careful consideration and management. In this publication, we explore the various cyber risks associated with AI from a legal perspective and discuss the implications for businesses and individuals.

Data Compromise

One of the most significant cyber risks associated with AI is data compromise. AI algorithms are trained on vast amounts of data, which must be stored securely to prevent unauthorized access. However, this data is often highly sensitive and could result in significant harm if it were to fall into the wrong hands. This makes AI systems a target for cyber criminals. If this data is not properly protected, it can be accessed and used for malicious purposes, such as identity theft, fraud, and blackmail. For example, an AI system used in healthcare could contain personal health information that could be used to blackmail individuals or cause financial harm.

In order to mitigate this risk, organizations must take steps to ensure that the data they use to train AI algorithms is kept confidential and secure. This may involve using encryption to protect the data, or using secure data centres to store it. Additionally, organizations must have robust privacy policies in place that clearly outline how the data will be used, who will have access to it, and what measures will be taken to protect it.

The use of AI also creates new avenues for data compromise. For example, AI systems can be manipulated to produce biased or inaccurate results, which can have serious consequences for individuals and organizations. Additionally, AI algorithms can be designed to gather data in ways that are not transparent, making it difficult for individuals to understand how their personal information is being used.

General Risks of AI

In addition to data compromise, there are other general risks associated with AI that require consideration. These include:

  • Lack of transparency: AI systems are often designed to be opaque, making it difficult for individuals to understand how they work and how decisions are made. This can lead to mistrust and a lack of accountability.
  • Bias: AI systems are only as good as the data they are trained on, and if the data is biased, so will be the results produced by the system. This can have serious implications for individuals and organizations, particularly when decisions that affect people's lives are being made.
  • Job displacement: As AI becomes more sophisticated and capable, there is a risk that it will replace human workers, leading to job displacement and potentially exacerbating income inequality.

Illegal or unethical activities

There is the potential for the algorithms of an AI system to be used to perpetuate illegal or unethical activities. For example, AI algorithms could be used to automate financial fraud or to engage in cybercrime.

Organizations must be mindful of this risk and take steps to ensure that their AI systems are not used to perpetuate illegal or unethical activities. This may involve implementing strong security measures to prevent unauthorized access, and conducting regular security audits to detect and prevent any instances of abuse. Additionally, organizations must have clear policies in place that outline the ethical and legal use of their AI systems, and be prepared to take swift action in the event that the policies are violated.

Further, organizations must be aware of the potential for AI to be used to perpetuate human rights abuses. For example, AI algorithms used for surveillance or predictive policing could lead to discrimination against certain communities or result in human rights violations.

To mitigate this risk, organizations must ensure that their AI systems are aligned with international human rights standards and that they are transparent about how the algorithms are used and what data is collected. They must also have strong privacy policies in place that clearly outline how the data will be used, who will have access to it, and what measures will be taken to protect it.

Risks of AI taking over humanity

While the risk of AI taking over humanity may seem like a science fiction scenario, it is a legitimate concern that requires consideration. If AI systems become too advanced and autonomous, they may not be able to be controlled by humans, leading to unintended consequences. Additionally, if AI systems become too powerful, they may be used to control and manipulate human behaviour, leading to a loss of freedom and autonomy.

Implications for the legal landscape

There is a need for clear and effective regulations to manage the risks associated with AI. This includes regulations that ensure data protection and privacy, as well as regulations that address the broader social and ethical implications of AI. Additionally, there is a need for a robust legal framework that provides a clear and consistent framework for the development and use of AI systems.

Lavan Comment (written by Lavan)

This article was prepared in a matter of minutes by AI. It demonstrates the power and potential utility of AI. That will only increase.

While the rapid development of AI has immense potential for application in a wide range of professions and industries, we should exercise caution before doing so. Among other things, it remains to be seen how the use of AI may impact an individual or company’s liability for the accuracy of advice or services provided by an AI. Ultimately, the lack of transparency about how an AI system has been designed, and the information that it relies on, suggests that we cannot blindly rely on its results without careful scrutiny.

It also demonstrates that we cannot ignore the potential benefits its proper use may bring.

If you have any concerns in relation to liability in relation to the use of an AI system or AI generally, please contact Iain Freeman, Partner, Litigation and Dispute Resolution Team.

Disclaimer – the information contained in this publication does not constitute legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matter you may have before relying or acting on this information. The Lavan team are here to assist.