The rapid emergence of consumer-friendly generative AI tools like ChatGPT has raised many concerns for corporate lawyers, including how to protect corporate trade secrets and how to protect confidential and privileged information.
Some companies are trying to stop their employees from using these tools entirely. Earlier this year, JPMorgan Chase, Bank of America and Citigroup imposed restrictions or bans on their employees’ use of tools like ChatGPT. And in early May, Samsung completely banned the use of generative AI tools after an engineer accidentally uploaded internal source code to ChatGPT and leaked it. Other companies such as Amazon, Verizon and Accenture have reportedly imposed similar restrictions.
With AI’s rapid market entry, the narrow focus of banning ChatGPT from employees misses the point. In March and April he released over 2,000 AI applications. To block access to all of them and the avalanche that follows, you would essentially have to block access to the internet.
Additionally, this technology is embedded in ubiquitous applications from Microsoft, Google, Salesforce, Bloomberg, and others. In fact, LLM is being integrated directly into the security and privacy software itself, and you can’t put this genie back in the bottle.
The main governance issue is more about education than law. With this in mind, Ad Idem’s corporate advisory network established the AI Task Force to support companies in managing risk and harnessing the potential of AI.
This challenge is similar to phishing. Email is a fact of commerce and therefore a true data security priority that can never be completely eradicated. The rise of generative AI could be the perfect opportunity to refresh your data governance policies, but it’s an additional impetus to update your training, including how to use tools safely.
In addition to managing the risks posed by the rapid emergence of AI, companies like Ford Motor are looking to leverage AI to improve how they operate their businesses through in-house and outside counsel. These cutting-edge companies, law firms, and bar associations are rapidly developing AI task forces to research the technology explosion and find the right tools to use in their business.
So where should in-house counselors start? No need to reinvent the wheel. Corporate counsel should begin by reviewing and updating existing policies governing the use of technology and corporate information. We must also consider that these generative AI applications are just tools.
The Enterprise Advisory AI Task Force should actively recommend or adopt new tools aligned with the system-level approach to improve the efficiency of their business deliverables. This should be done before large consulting firms and executives push for enterprise-wide modernization without the participation and buy-in of legal departments. Those who initially resist change risk facing inadequate solutions shoved through the doorstep of in-house counsel. A proactive AI task force will create a seat at the table for these high-level discussions. I’d rather be on a train than be run over by a train.
This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., publisher of the Bloomberg Act and Bloomberg Tax, or its owners.
Author information
Canby Wood is the Global Director of Litigation Solutions for LexFusion, a legal tech accelerator and advisory firm. In 2021, Canby co-founded She The Ad Idem Network, a 501(C)(4) legal networking association that serves her 1,400 corporate attorneys worldwide.
Richard Cole is a Senior Counsel for the Washington Metropolitan Transportation Authority, primarily handling complex litigation and employment lawsuits. He co-founded and helped run his Ad Idem Network.
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