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Marketing Viewpoint by Ruth Winett Are You Ready for AI? Edward Herrmann's heirs allowed audio book publishers to sample several of Herrmann's audio book narrations to capture his voice.* In a startling invasion of privacy, the publishers used Artificial Intelligence to record new books in the deceased narrator's voice. What if the new books were inconsistent with Herrmann's beliefs and values? This breach of privacy is just one of the challenges AI presents. To protect themselves from AI incursions, companies should work with their legal departments to protect their proprietary content and proprietary research, as well as their logos and other brand identifiers. At the same time, companies should guard against inadvertently misusing others' intellectual property made available with AI. Generative AI creates new legal and operational challenges for individuals, their organizations, and the creative work they produce. For example, a competitor could more readily access company files or research reports and steal your new product ideas. In addition, by accessing annual reports, company news, company hires, and other information, a competitor's AI could anticipate company moves, including planned acquisitions, product retirements or modifications, or problems with products and product prototypes. While such analyses were possible before, AI makes such analyses faster and more in-depth than previously possible. Strategic Choices for AI Center on Three Pillars AI represents unchartered territory. Despite the obvious benefits of scanning more material than a human could scan, as well as the ability to summarize mounds of text or data, AI has limits, too. AI sometimes generates fake news or produces unanticipated, but dangerous or damaging consequences. Because of these potential problems, CEOs must make choices about AI strategy based on "three pillars," according to the Boston Consulting Group**: 1. "Potential"—Find "golden use cases" for AI that will differentiate your organization. 2. "People"—Change your operating model to educate employees about AI, and then support the employees. 3. "Policies"—Establish "ethical guardrails and legal protections," and protect sensitive company information. [This is the most important of the three pillars.] We are now at a technological inflection point, much like when PCs, cell phones, and social media first became widely available. Business practices are changing. Organizations must be prepared legally, operationally, and technically for these changes. Content of all types and the work of scientists and creative people, such as Herrmann, must be protected. Sources: * From a Wall Street Journal article **https://www.BCG.CPM/Publications/2023/CEO-Guide-To-AI-REVOLUTION Capitain, Sean, “25 Questions To Ask Yourself About AI,” Wall Street Journal, 4/17/23, p. R2.
Actionable Business Insights Copyright ©5/23 Ruth Winett. All rights reserved.
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