5 Steps to Prepare for a Future With AI

Artificial intelligence (AI) has made its way into many workplaces and is rapidly changing how organizations operate and make decisions. With its advancement, AI’s ability to enhance processes, streamline operations, and improve customer experiences has become evident, but its risks are not yet fully understood. As this technology enters workplaces nationwide, organizations must scrutinize its limitations to protect themselves from legal and reputational harm and foster trust among customers and stakeholders.

The article discusses some of the risks associated with AI use and the steps organizations can take to prepare for a future with AI.

The Risks of AI Use

The speed of AI advancement has caught many organizations off guard. As this technology develops, employers should take time to understand the associated risks and implement AI solutions carefully. Risks that stem from organizations’ use of AI include:

• Worker unrest—The media interest surrounding AI may have sparked employee concerns, particularly regarding job security. Specifically, AI has been hailed for its ability to automate routine tasks and achieve efficiencies. Naturally, some employees might worry that this could lead to job displacements. They could also feel overwhelmed by the need to upskill and understand new working methods. Consequently, workforce morale could suffer.
• Regulatory concerns—Without strict policies on data use, organizations could use AI in ways that result in biased or inaccurate outputs, causing discrimination concerns. Additionally, the vast datasets AI systems typically use could create privacy concerns under the Personal Information Protection and Electronic Documents Act. Failure to comply with regulations poses legal risks and undermines public trust.
• Cybersecurity risks—Integrating AI into business processes could heighten cyberthreats, particularly data poisoning, in which threat actors can “poison” the data used to train AI tools to influence the tool’s decision-making. Corrupt training data may cause AI models to learn incorrect or biased information, which threat actors can exploit for malicious gains. Moreover, data poisoning could lead to a rise in stealth attacks—where manipulated training data creates vulnerabilities that are difficult to detect during testing but can be exploited later.
• Distributing harmful content—AI systems can create content automatically based on text prompts. However, mistakes in the prompts, whether accidental or intentional, could result in harmful text outputs. For instance, an AI-generated email sent to employees could contain offensive language or issue guidance that does not align with company policies.

Steps to Prepare for a Future With AI

To navigate the AI evolution and mitigate risks, employers should consider these five strategies for preparing for widespread AI adoption:

1. Implement comprehensive policies. Conducting robust risk assessments can help employers understand the opportunities and risks presented by AI adoption. A SWOT (strengths, weaknesses, opportunities, threats) analysis could be leveraged for this purpose. Then, employers must develop clear and comprehensive policies encompassing ethical guidelines, security measures and regulatory compliance. Stakeholders may be involved in the policy development process so employers can gain a broader perspective. Organizations should stay abreast of AI trends and adjust policies accordingly.
2. Foster psychological safety. To reduce employee apprehension, nurturing psychological safety—by creating an environment where employees aren’t reprimanded for speaking up with ideas, questions, concerns or mistakes—may be essential for improving workforce morale and employee engagement during AI implementation. Additionally, when workers feel comfortable reporting issues with AI systems, organizations can learn from mistakes early in the AI adoption process and avoid more significant problems in the future.
3. Train employees. Employers should take steps to upskill workers’ AI literacy to prevent risk exposures. Training topics should include considering the ethical implications of AI-driven decisions, identifying harmful AI content and implementing robust cybersecurity best practices.
4. Introduce AI solutions gradually. Although it may be exciting to embrace this emerging technology, AI tools should be adopted gradually to allow time for testing and refinement as each system is rolled out. Rushed implementation could result in algorithm biases or unintended consequences in decision-making. It may also result in employee mistakes should workforce upskilling lag behind AI deployment.
5. Consider collaborating with an AI partner. Organizations could consider enlisting the help of specialized AI service providers to recommend suitable technologies and provide implementation assistance.

Although AI adoption can help organizations automate processes, increase efficiency and bolster productivity, it can also lead to significant risk. With the AI market set to grow significantly in the coming years, organizations must take proactive steps to reduce exposures.

For comprehensive risk management guidance and insurance solutions that evolve with your business, contact CMB at 780.424.2727 or click here to get a quote.