10 Surprising Reasons NOT to use ChatGPT in Your Business

Introduction

In today’s fast-paced business world, it’s hard to ignore the hype surrounding Generative AI (GenAI) tools like ChatGPT, Bard/Gemini, Claude, Pi, Co-pilot, Grok, and other AI language models. The potential rewards are real; including increased efficiency, improved customer service, and gaining a competitive edge to name a few. However, there are numerous risks that are just as real. If you are a small business owner, manager, or operator considering jumping on the GenAI bandwagon, it’s crucial to first take the time to understand the various reasons why you shouldn’t be using these tools in your business, so that you can find the appropriate balance for you and be well-prepared and better able to protect yourself, your business, and your loved ones from the risks when you do.

Reason 1: Data Security Concerns

Data security is paramount in today’s digital landscape. Small businesses often handle sensitive customer information, and the consequences of a data breach can be devastating. ChatGPT, as a powerful new AI model, raises legitimate concerns about data security.

With everything being online these days, it’s often difficult to tell the difference between what type of information should be protected and what shouldn’t. Knowing the difference is now more important than ever with the development of various AI tools that can manipulate this information in new ways. Information that should be protected, often referred to as “sensitive information,” is generally considered to be any information that could lead to misuse or harm to an individual or an organization, if disclosed. This includes personal, health, financial, or biometric data, and confidential information from businesses or other organizations, to name a few.

We don’t need to look very hard to find examples of real-life concerns regarding data breaches using ChatGPT. Companies like Samsung and Amazon experienced significant data security concerns when their employees began using ChatGPT and have subsequently banned their employees from using it and developed their own AI tools instead. Small businesses that want to reap the benefits of using GenAI don’t have the luxury of creating their own AI tools, but we can take appropriate risk mitigation steps.

Reason 2: Inaccuracy and Misinterpretation

While ChatGPT and the various GenAI tools that have popped up are impressive, they are not infallible. Their inaccuracies have become so widespread in fact that the industry has hijacked a word to refer to them, “hallucinations.” As an avid user of GenAI tools, I’ve come to a point where I just assume everything is wrong and so I spend a considerable amount of time fact-checking, proofreading, and re-writing content. I still believe the benefits far outweigh the time it takes me to do so, and in some cases (like in the three-arm issue found in our featured image for this article), I’ve enjoyed embracing the hallucinations, however, relying solely on AI-generated content can lead to embarrassing or costly mistakes which can have serious impacts on your business.

Michael Cohen, for example, is a great case study. He’s just the latest lawyer to have to apologize to a judge for submitting documents with fake information to the courts because he relied on Google’s Bard without double-checking the output. Another lawyer, Zachariah Crabill, also had to apologize and was fined $5,000 and lost his job after a similar incident. Interestingly enough, that hasn’t turned him off from using GenAI but he said he’s now relying on tools other than ChatGPT that have specific guardrails for lawyers.

Reason 3: Ethical Implications

Unintended Bias and Discrimination

AI models can inadvertently perpetuate biases present in the data they’re trained on. This can lead to discriminatory or biased outputs, potentially harming your business’s reputation and customer relationships. Failing to catch these can result in a tarnished reputation or even worse. Avoiding such scenarios should be a top priority.

A recent study found that GenAI tools are entrenched in bias and gender discrimination, as evidenced when asked to write letters of recommendation for men and women. The study advises that GenAI “should only be used with careful scrutiny—because its output discriminates against women.”

Reason 4: Loss of IP Protection

There’s Concern in the Industry

The AI industry is still grappling with the complex issue of intellectual property (IP) protection surrounding AI-generated content. Creators are suing GenAI tools left and right for potentially infringing on their copyright claims; including the New York Times which recently sued OpenAI and Microsoft. They’re vowing to bring down ChatGPT after it allegedly used millions of articles from The New York Times to train its chatbots to compete with it. This will surely be a massive case drawing attention from all parts of the world, however, other IP-related concerns are more pressing to smaller businesses, and that is the risk of losing control over their creations.

Reason 5: Legal Concerns

Navigating the legal landscape of AI in business can be treacherous. Compliance with regulations like GDPR, CCPA, and industry-specific standards is vital. Preparing for potential legal challenges and ensuring your business has a contingency plan and can recover if legal decisions don’t go in your favor, is essential. No one has a crystal ball and it’s too early to tell what legal decisions will come down the road, but these are real concerns that small businesses should protect against when using GenAI tools.

Reason 6: The Learning Curve

Most people are being led to believe that using GenAI tools is as simple as opening a web browser and asking your question. That may technically be true, however, implementing ChatGPT in your business comes with a learning curve. Training your team and ensuring they understand the technology and how to use it safely takes time and resources. Cutting corners to save costs can lead to security breaches and other issues. Invest in training and risk management to avoid hidden expenses in the long run.

Reason 7: Employee Resistance

It’s important to realize that employees may fear that AI will replace them, or that AI will threaten their safety in some way, so it’s crucial to address these concerns openly and honestly. The use of AI was at the center of the writers and actors strikes, for example, that crippled the entertainment industry for months. It’s a perfect example of what could happen when employees feel threatened, even if you haven’t done anything yet.

Engage your employees in the process of implementing GenAI in your business. Show them how it can enhance their roles rather than replace them. Implement strategies to foster employee buy-in and make them feel like valuable contributors to the AI integration process. Allow them to show how they can be a part of the AI-driven future we are all now a part of creating, whether we like it or not. Failing to do so can lead to an exodus of employees as they seek employment at organizations they feel more comfortable working with, or even worse, it could lead to employee sabotage as they try to prevent you from taking advantage of these new tools.

Reason 8: Customer Resistance

Customers are increasingly concerned about their privacy. Using ChatGPT without transparency can erode their trust, which can lead to a loss of revenue or of losing your customers altogether. For many small businesses, losing even a few key customers can mean an end to the business altogether. Communicate openly about your use of AI and assure customers that their data and privacy are a top priority.

Reason 9: Stakeholder Resistance

Stakeholders may have concerns about the risks associated with ChatGPT and given their influence in your business, disregarding these could have major consequences. It’s crucial to understand their perspective. Stakeholder concerns could include any of the reasons we’ve discussed already, be it legal, ethical, privacy, or IP-related concerns to name a few. Engage with stakeholders and involve them in the decision-making process. Transparency and communication are key. Most, if not all, of their concerns, could easily be addressed with a few simple risk mitigation strategies.

Reason 10: Lack of Expertise

This reason always gets me. It reminds me of going to the bank and asking for a small business loan when you first start your business. Anyone who has tried knows that they’ll typically let you they can’t lend you any money until they see that you already have money or are making money. Well, if that were the case I wouldn’t be at the bank asking for money. Something similar is happening with GenAI. People who lack certain knowledge or expertise are flocking to these tools to get low-cost help without having to pay real experts. The problem is that if you don’t know anything about a subject, how can you be sure the output you’ve received is good, bad, or worse, dangerous?

Quality control is critical to ensure the output meets your business standards and objectives. Learning how to QC GenAI output, even if you aren’t a subject matter expert, will become a highly desirable skill in our future workforce.

Conclusion

There should be no doubt that AI is the future. Businesses that fail to adopt it in one form or another will find themselves left behind, but it’s essential to tread carefully.