Building Generative AI Guardrails
Image credit: Author + Midjourney 5
Generative AI is rapidly advancing with immense potential for the business world but also with risks that must be addressed. For executive leaders, having enterprise-wide safeguards in place ensure their companies can explore the opportunities in a responsible way while protecting against misinformation and data security breaches associated with Generative AI (GenAI).
We must ensure that AI is designed and used responsibly, that it is transparent and explainable, and that privacy is protected" - Satya Nadella, CEO of Microsoft
The Importance of Responsible AI
Forward-thinking organizations and their leaders are starting to implement provide safe and responsible usage of Generative AI to leverage its benefits and mitigate risks. With ongoing assessments and the implementation of guardrails, businesses can accelerate productivity and innovation while guarding against unintended negative consequences.
A recent study from KPMG found that executives expect Generative AI to have a significant impact on their business;
72% of are optimistic about Generative AI's potential to increase productivity
65% see GenAI as changing the way their people work
66% it as a driver of innovation
These are all very encouraging business drivers. However, there's a wide gap between the current state of business readiness and the future state for GenAI adoption to realize its potential.
Risks of unregulated Generative AI Usage
The KPMG research also shows that most executives are unprepared to adopt GenAI into their organizations. Of those interviewed;
Only 6% have a dedicated team in place to evaluate and mitigate AI risk
68% of executives have not appointed an individual to serve as the main lead for their company’s exploration of GenAI
90% have “moderate to highly significant” concerns about the risks of using GenAI and are uncertain how to mitigate those risks
In reality, many knowledge workers are already using GenAI in their professional work -- often without proper guidelines or oversight from company leadership.
This lack of visibility raises concerns about the exposure of sensitive company information in open systems that can be trained and repurposed by other language models. Without a clear corporate vision for AI and internal safeguards, the risks associated with GenAI become more pronounced.
Some companies have even decided to block Generative AI because of its potential to release confidential data. These decisions, however, can come back to damage their ability to stay competitive and retain their most ambitious talent.
Empowering the Human Workforce
Embracing GenAI can be uncertain and challenging, not only for executives but also for employees seeking to understand this groundbreaking technology. Finding the right balance between governance and innovation is paramount.
Workforce education and training become critical for responsible usage. Employees should be aware of the limitations of AI and understand how to leverage it successfully. Having a safe sandbox environment allows exploration to discover innovative products, services, and business models. Several emerging companies like Nova and Credo AI, Clara are building tools that provide the safe and responsible use of GenAI.
And while executives acknowledge the risks of using GenAI, only some have implemented a mature AI governance program. This gap highlights the importance of proactive leadership and the need for guardrails to navigate this gray area effectively.
Embracing GenAI can be uncertain and challenging, not only for executives but also for employees seeking to understand this groundbreaking technology. Setting the rules of engagement and creating the boundaries are an important step in establishing these new capabilties for successful adoption.
AI Content Disclaimer: The human author who wrote this augmented the final post with Generative AI tools for ideation (ChatGPT), research (Perplexity AI) and image creation (Midjourney).
