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Elevate Magazine
November 1, 2024

NZ Businesses Urged to Address AI Risks in Wake of Australian Ban

nz businesses urged to address ai risks in wake of australian ban

Photo source: FMT

New Zealand finds itself at a critical moment, with the recent ban on ChatGPT in Australia having sparked a broader conversation about the implications and risks of AI technologies. Kiwi organisations have adopted AI tools, but they are confronted with a dual challenge—leveraging the transformative power of these technologies while protecting against their inherent risks.

With nearly half of New Zealand businesses already utilising AI, the stakes have never been higher. As concerns about data privacy, misinformation, and ethical use intensify, the call for robust governance and regulation becomes crucial.

The Increasing Integration of AI Across Sectors

New Zealand is at a crossroads with AI adoption, as nearly half of its organisations have integrated some form of AI into their operations. According to a Datacom survey, 48% of businesses currently use AI, while 49% have yet to adopt any AI technology. Despite this split, 81% of business leaders still believe that AI will significantly impact workplace structures and operations in the near future.

The government has been actively encouraging the use of AI across various sectors, including education and public services. However, this push has raised concerns about outsourcing risks and societal costs associated with AI technologies. New Zealand could be embracing AI’s potential, but it is largely transferring the environmental and social burdens to other countries, particularly those hosting data centres that support AI operations.

Addressing AI Risks

Organisations utilising generative AI tools like ChatGPT face several risks:

Confidentiality Breaches

There is a significant risk of sensitive data being leaked when employees use generative AI without proper oversight. A study indicated that 25% of users had leaked data while interacting with such tools.

Misinformation and Bias

The outputs generated by AI can sometimes be misleading or biassed, which poses concerns, especially in sensitive applications like criminal justice. Research shows that AI-generated misinformation can be particularly persuasive, often mimicking credible sources and enhancing details to create an illusion of accuracy, which can worsen existing societal biases.

Additionally, AI systems trained on biassed datasets can inadvertently reinforce stereotypes and discriminatory practices, which then leads to unfair treatment in various contexts.

Operational Risks

Many organisations lack clear policies regarding AI usage. A substantial number of business leaders expressed uncertainty about the security implications of AI technologies, indicating a gap in understanding how to manage these risks effectively.

To mitigate these challenges, experts suggest implementing robust guardrails for AI use. This includes developing clear policies for data management and privacy protection, as well as furthering discussions around AI practices.

The Need for Governance and Regulation

In light of these challenges, there is a growing consensus among business leaders that government intervention is necessary to establish specific legislation governing AI use within both public and private sectors. Approximately 82% of respondents from the Datacom survey believe that such regulations should be introduced to ensure safe and responsible AI deployment.

Furthermore, organisations are encouraged to engage local experts to build their own AI capabilities rather than relying on multinational corporations. This would promote local expertise and ensure that data sovereignty is maintained—protecting individuals’ rights over their personal information.

New Zealand can position itself as a leader in responsible AI usage by building a culture of awareness around the potential risks associated with AI while embracing its advantages. The dialogue surrounding these issues will be crucial as the nation prepares for future challenges related to technology adoption and its impacts on society.