Artificial Intelligence (AI) is being incorporated steadily into business operations worldwide, as things evolve with time. Businesses are constantly on the lookout for innovative ways of improving their products and services for efficiency and customer/client satisfaction. AI technologies can provide innovative solutions for businesses. AI is a technology tool that imitates human intelligence. AI presents a unique set of its own legal challenges. There are no laws currently that specifically deal with AI in South Africa. However, in the use of AI in business operations, certain laws can be applied to manage the legal risks that come with the same. At a product development stage, laws on data protection become paramount and can provide a protective safeguard for the use of AI technologies.
Here are some of the legal considerations to take into account when dealing with AI technologies
Information Security
Ensure that your AI service/product suppliers adhere to laws in so far as the collection, storage and processing of information is concerned. AI supplier should disclose how they encrypt, anonymise, or secure your data/information to prevent unauthorised access. Your information is confidential and sensitive and should thus be treated with high level protection by your AI suppliers.
Data Protection
Ensure that your AI suppliers comply with data protection laws such as the Protection of Personal Information Act No 4 of 2013, Electronic Communications and Transactions Act 25 of 2002, and other data protection laws. Understand who will be viewing your information and what protective measures they have in place to manage any unauthorised access by others.
Contracts
Your AI suppliers should provide clear details in terms of the AI technologies they will use.
Staff Training
Train your employees on the responsible use of AI in their work tasks. There needs to be understanding in terms of what is allowed and what is prohibited. A policy would manage such risks.
Policy Formulation
An AI use policy needs to be developed. The terms of the policy should be clear. Employees need to know, amongst others, what is acceptable, prohibited, consequences of using AI technologies on their personal phones for work matters (whether permitted or not), especially where AI is blocked by a company’s system, which technologies they are allowed to use (e.g. those authorised by the company). This is to manage instances where sensitive business information is used on a free AI tool outside work, on a personal computer/mobile phone, which can potentially expose the business’s information to legal risks.
This article is for information purposes only and does not constitute professional legal advice. Please consult an attorney for your own unique circumstances. Should you require contract review services for contracts with AI technologies, please feel free to reach out to us at info@mhmattorneys.co.za or call us on 082 408 8884.
