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May 24, 2024
Lyceum Insurance Services

Regulating the Use of AI by Your Employees 

person holding green paper symbolizing the use of AI by employeesAs your business grows, innovates and pursues goals, new technology, like the use of AI, may create exciting opportunities.

However, these advancements may also create new risks or exacerbate existing exposures.

Diligent organizations and their leaders must be prepared to educate themselves on changing technology and methods and implement appropriate strategies.

This is the challenge currently facing many businesses, regardless of size or sector, as artificial intelligence (AI) solutions emerge.

The Importance of Having a Plan for the Use of AI

Like any new implementation in your business’s operations, the use of AI must be planned and regulated. While these programs and platforms may cultivate many opportunities to streamline daily operations or pursue innovations, improper or excessive use could have significant ramifications down the road.

For example, some AI chatbots may not have formal restrictions regarding the privacy of data or information they receive. So your business and its employees should be cautious about providing any confidential or sensitive information while using AI.

Key Considerations When Regulating AI in Your Workplace

While AI may come with risks, using these tools can provide significant benefits for your workplace when adequately implemented. Decision-makers should be mindful of the following factors while creating AI-related plans and practices:

  • Understand limitations. Before your company begins implementing formal plans for AI, it should establish realistic expectations. Although certain applications of this technology may be powerful, these programs should not be expected to replace human employees. Instead, consider scenarios where AI can empower and enable your staff.
  • Consider the legal implications. Laws and regulatory standards regarding the use of AI in the workplace may vary significantly depending on your location and the industry in which you operate. Furthermore, both federal and state governments should be expected to establish or modify legislation as AI becomes fully engrained in the United States. So your company must stay current on any relevant laws or regulations.
  • Prioritize education. Your business should host detailed training sessions to ensure employees are well-informed about the capabilities and limitations of the platforms and tools you’ve deemed appropriate for use in the workplace. If there are any limitations regarding AI use for specific, these should also be clearly communicated.
  • Plan to reevaluate. As your business, AI capabilities, and standards and requirements change over time, your company should be prepared to adjust accordingly. Monitor the impact of AI in your workplace and establish and commit to a schedule where you revisit company practices.

We’re Here to Help

At Lyceum Insurance Services, we pride ourselves on helping businesses optimize their workplaces by utilizing the best available tools and opportunities while still limiting risks and exposures. Contact us today to learn more about the safe and responsible use of AI, as well as for other resources to help cultivate an ideal work environment.


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 


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