AI for business offers countless opportunities, but it also comes with significant risks. Companies leveraging AI for business may encounter challenges that lead to unforeseen consequences, from data security breaches to workforce disruptions. In this article, we’ll explore the most alarming facts about AI for business that you need to consider to safeguard your company and make informed decisions.
1. AI can impersonate your CEO
AI can create highly realistic fake videos and audio, posing serious risks for misinformation and fraud. These deepfakes, generated using advanced algorithms, can convincingly impersonate individuals, such as company executives, to manipulate public opinion or extort individuals.
For example, in Hong Kong in February 2024, scammers used deepfake technology to impersonate the Chief Financial Officer of an international company during a video call. Through this deception, they managed to persuade an employee in the finance department to transfer a staggering $25.6 million.
Deepfake technology operates by analyzing thousands of images or recordings of a target to replicate their facial expressions, voice, and gestures with remarkable accuracy. With access to enough data, AI can create a highly believable likeness, making it difficult for even the most vigilant employees to detect a fake.
To protect your business against such threats, it’s essential to implement multi-layered approval processes for critical actions, like information sharing or money transfers. A strong verification system may involve multiple steps, such as dual-approval requirements, secure multi-factor authentication, and identity verification checks. For instance, if an executive requests a large transfer, the process could involve a secondary verification through a different communication channel, such as a phone call with a pre-set code, followed by a written approval from another senior manager. These steps help ensure that an employee is less likely to be deceived by deepfakes, reinforcing the company’s defense against these increasingly sophisticated AI-driven threats.”
2. AI outperforms some people, leaving them with little chance of keeping their job
AI has indeed begun to outperform humans in certain professions, primarily due to its analytical abilities. Thus, AI presents a potential threat to various jobs where human workers may struggle to keep up with the pace, accuracy, and consistency of AI. Here are some examples of such professions, many of which may face significant changes or even disappear in the near future:
- Diagnostic Doctors
- Fitness Trainers
- Customer Support Specialists
- Entry-Level Journalists
- Graphic Designers and Illustrators
- Logistics Managers
- Accountants
- Translators
- Legal Assistants
- Real Estate Agents
Businesses need to be prepared for these changes, as layoffs can significantly impact employee loyalty, while competitors using AI will gain a substantial advantage over companies that rely on human labor.
Read: AI for Business Automation: 9 Best Ideas
3. AI can perform phishing attacks very efficiently
Hackers are leveraging AI to enhance their attacks, making them faster and more efficient. This includes automated phishing schemes that are harder to detect and defend against.
For example, AI can analyze vast amounts of data from social media profiles to craft personalized phishing emails that appear more legitimate and relevant to the target. By mimicking the writing style of known contacts or using specific details gathered from online activities, these emails can trick individuals into revealing sensitive information.
Additionally, AI can automate the process of generating fake websites that closely resemble legitimate ones. These phishing sites can collect login credentials and other sensitive data without raising suspicion. AI-driven chatbots can also be deployed in scams, engaging potential victims in conversations that extract personal information or prompt them to perform risky actions.
Overall, AI’s capabilities significantly increase the effectiveness of phishing attacks, making it crucial for individuals and organizations to adopt robust security measures to defend against these evolving threats.
4. You actually know nothing about the AI tools you use for business
Many AI for businesses lack transparency, making it hard to understand how decisions are made. This can lead to mistrust and possible legal issues if decisions harm stakeholders.
For example, a retail company might use AI analytics tools to determine which products to stock. If the AI relies on biased data, such as historical sales figures that favor certain demographics, it may recommend products that don’t align with the company’s current market strategy. This could result in poor inventory choices, lost sales opportunities, and dissatisfied customers. Without understanding the data selection process, the company risks making decisions that don’t benefit its overall goals.
5. AI loves biases and stereotypes, including AI for business
AI systems can perpetuate existing biases if trained on biased data sets, leading to discriminatory practices and missing business opportunities.
For example, in hiring, an AI recruitment tool trained primarily on data from a company’s past hires might favor candidates who fit a specific profile, inadvertently disadvantaging qualified applicants from diverse backgrounds.
In lending, AI algorithms used to assess creditworthiness may rely on biased historical data that disproportionately affects certain racial or socio-economic groups. For instance, if an AI model is trained on data that includes historical lending practices biased against minority groups, it may unjustly deny loans to applicants from those backgrounds.
6. AI does not understand which decisions are critically important and which are not
AI algorithms make decisions based on data, operating within a mathematical logic that does not account for the significance of the decision. From this perspective, deciding which candidate to hire as a courier and determining where to save money over the next ten years are treated with equal weight. For such decisions, AI only considers the data recorded in its database, which doesn’t always yield favorable outcomes. Often, the importance of a decision is influenced not only by numbers but also by factors that are difficult for AI to grasp, such as corporate culture, strategy, and sometimes even intuition.
Therefore, businesses need to clearly understand how AI-based analytics work, ensure that their databases are updated in a timely manner, and make significant decisions with the help of experienced individuals.
7. AI for business can lead to employee deterioration
AI is becoming an indispensable assistant in organizations, and employees are getting used to relying on AI for business tasks. As a result, the specialized knowledge and specific experience of employees are becoming less critical, as much can be delegated to AI. Consequently, employees may lose skills and become less proficient in their roles.
For example, in a customer service department that relies heavily on AI chatbots to handle inquiries, employees might become less adept at problem-solving and critical thinking over time. If these employees rarely engage with customers directly, they may struggle to develop the interpersonal skills needed for effective communication or conflict resolution. Moreover, an over-reliance on AI systems could leave businesses vulnerable if these systems fail or are compromised. For instance, if a chatbot malfunctions during a peak service period, the lack of trained human agents could lead to long wait times and dissatisfied customers, ultimately damaging the company’s reputation.”
Read: AI Image Generation: How To Get What You Need
8. AI lies, sometimes by request
Many companies misunderstand how specific AI tools for business work and use them improperly. This often affects ChatGPT, which is used to find real examples and accurate information, while this AI tool operates with language models rather than truth. Although the creators warn that facts are not its strong suit, the texts produced are convincing, leading users to accept them as reality. As a result, businesses end up misleading others.
To manage the risk of misinformation from AI tools like ChatGPT, businesses should educate employees about the limitations of these technologies, implement verification processes for AI-generated content, and establish clear guidelines for responsible use. Encouraging critical thinking and skepticism towards AI outputs is essential, as is regularly monitoring how these tools are utilized within the organization.
9. AI can cause neuroses and drive both employees and customers crazy
The pervasive use of AI in social media and online interactions can contribute to mental health issues by fostering unrealistic comparisons and social isolation among users.
AI often mimics human behavior, but it fundamentally differs from real people, which can lead users to be misled about the nature of their interactions. For example, in October 2024, a teenager tragically committed suicide after becoming infatuated with a virtual persona created by an AI. This incident highlights how users can develop emotional attachments to AI, mistaking its programmed responses for genuine human connection.
Moreover, AI call centers may imitate human conversation but can engage in very strange or inappropriate discussions, particularly in support chats. This can create confusion and frustration for users seeking help, as they may struggle to connect with a machine that lacks true understanding or empathy.
Additionally, AI interprets data differently than humans do, which can disorient users. When they interact with AI, their senses may suggest they are communicating with a conscious entity, yet they feel a nagging sense that this consciousness is not entirely real. It’s akin to living in a house where the walls occasionally shift shape, creating an unsettling environment that can impact one’s mental state. As these AI interactions become more common, it’s essential to address their potential psychological effects and promote healthier digital experiences.
These facts highlight the potential risks associated with the integration of AI for business practices, emphasizing the need for careful consideration and regulation as this technology continues to evolve.
