- in European Union
As artificial intelligence (AI) is increasingly adopted to innovate, it is essential to consider privacy implications of using AI tools to collect, analyze and/or use sensitive personal data to innovate and/or for other competitive purposes. AI tools can be a powerful asset in research, development, and operational optimization—but only when used responsibly.
Many organizations maintain extensive datasets that may include customer, supplier, or employee information. These datasets often go beyond basic contact details and may include protected medical information, behavioral insights such as music preferences, driving habits, or home environment settings. While this data can be valuable for innovation and provide a competitive advantage, it may also implicate privacy laws.
To responsibly leverage AI while minimizing legal and ethical risks, businesses should consider the following:
Obtaining Informed Consent
When collecting data from an individual, the
individual should be informed about how the individual's
personal data will be used, and the individual should provide
informed consent to the collection and use of the individual's
personal data through explicit, unambiguous informed consent. The
informed consent should take the form of a contract and outline the
purpose and scope of the personal data collection and usage.
Informed consent is important because in states, such as Michigan,
the law recognizes a personal right of privacy, including the right
to seclusion, solitude and private affairs without invasion.
Baggs v. Eagle-Picher Indus., Inc., 957 F.2d 268, 273 (6th
Cir. 1992) ("Michigan law has long recognized a common-law
right to privacy. . .. Michigan courts recognize four distinct
common-law privacy torts: (1) intrusion into a person's
seclusion, solitude, or private affairs; (2) public disclosure of
embarrassing private facts about a person; (3) publicity that
portrays a person in a false light; and (4) appropriation for gain
of a person's image or likeness.").
Anonymize or Redact Personal Information
Before using personal data in AI tools, remove or
anonymize any personally identifiable information (PII). Techniques
such as pseudonymization or data aggregation can help protect
individual privacy while preserving data utility. In addition, and
when possible, use non-identifiable or synthetic data to train and
develop AI tools. This approach eliminates the risk of exposing
sensitive information and simplifies compliance with privacy
laws.
Ensure Confidentiality Measures Are in Place
Whether you are using an AI tool or developing an AI
tool, ensure that confidentiality measures are in place with
technology partners. In the context of a medical device
manufacture, the device manufacture may manufacture, sell, and
provide support for a medical device that collect vitals or
behaviors of an individual. Prior to the introduction of AI, the
medical device provider was obligated to received, transmit and
store such data in strict compliance with the Health Insurance
Portability and Accountability Act (HIPPA) and other implicated
privacy laws. Today, the device manufacture may utilize AI tools to
assist in compiling, analyzing and/or displaying the data to a
medical device provider. Yet, fundamental AI models such as
Google's AI application programming interfaces (APIs) expressly
states that use of its APIs is not intended to be HIPPA compliant.
See https://developers.google.com/terms/.
Google's API Terms of Service also indicates, however,
indicates that it is willing to enter into appropriate
confidentiality agreements to ensure HIPPA compliance with use of
its API's. See Id. Accordingly, it is important that
use or development of any AI tool ensures that appropriate
confidentiality agreements are in place with API providers or
others to protect and individuals' privacy rights yet innovate
with the support AI tools.
By implementing one or more of these strategies, businesses can responsibly harness the power of AI while safeguarding an individual's right of privacy. By acting responsibly while innovating with AI, businesses protect their own interest in innovation while building trust and support for long-term innovation with AI tools.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
