AI’s Growing Influence on the Workplace

September 13, 2024

The Growing Adoption of AI in the Workplace

Since the launch of ChatGPT, AI has seen widespread adoption, becoming accessible to anyone interested in exploring its capabilities. As a tool, ChatGPT, or competitors like Google Gemini and Microsoft Copilot, can produce compelling content on a range of topics. More companies are integrating these resources into their business operations to improve workflow efficacy.

As of this year, the adoption of AI has grown significantly. Estimates show that around 75% of global workers are utilizing the technology. Examples of how employers have implemented AI into their workflow include HR practices, customer service, and software development.

Privacy, Security and Employment Discrimination Risks

As more organizations integrate AI into their operations, concerns about privacy and security have also emerged. Employers worry about the inadvertent sharing of sensitive information with AI systems due to unclear or undefined data usage policies. To mitigate this risk, more proactive organizations have banned certain AI applications to protect their data.

Additional breaches businesses face encompass potential challenges related to trademarks, copyright infringements, and the risk of employment discrimination. When employers use AI for recruitment, hiring, and selection, they may unknowingly expose themselves to liabilities arising from biased outcomes generated by AI filtering systems.

The U.S. Equal Employment Opportunity Commission (EEOC) has recognized AI as a critical area for enforcement. The agency has guidance to help employers using AI and automated systems comply with federal fair employment laws.

Cybersecurity Threats and Vulnerabilities

Beyond these concerns, AI also presents potential threats to cybersecurity. Cybercriminals can exploit AI for malicious purposes, such as distributing malware, cracking passwords, deploying social engineering scams, identifying software vulnerabilities, and analyzing stolen data. Studies have shown that a majority (87%) of organizations are vulnerable to AI-powered attacks, yet only 38% are taking proactive measures to mitigate these risks.

The Path Forward for Employers

As AI continues to revolutionize the workplace, employers must remain cautious. While AI tools offer significant advantages, the potential risks associated with their uncontrolled use cannot be overlooked. Organizations must remain vigilant in defending against generative AI cybersecurity threats from both within and outside their sphere of influence to minimize the likelihood of cyber losses in the future.

Contact us or your Robertson Ryan Insurance Agent for more information on cybersecurity insurance and ways we can help your business minimize exposure.