July 10, 2026
Year of AI 2026 · Updated July 2026
SAUDI COMPUTE
The Kingdom's Compute Buildout, Tracked.
Sovereign AI Infrastructure · Capital Flows · Geopolitical Intelligence

Generative Ai Models the Risks and Potential Rewards in Business · Table (p.10)

From generative-ai-models-the-risks-and-potential-rewards-in-business.pdf · page 10

78 rows × 2 cols pdfs_from_pdf_links

01
You’ve now seen how generative AI models may helpto protect its intellectual property while still being able to enjoy
consumers, streamline organizational processes and freethe benefits of generative AI applications.
up time for employees to take on higher-value organizational
tasks. That said, the use of generative AI has many limits and
Employee misuse and inaccuracies
potential pitfalls.
Even legitimate use of generative AI comes with risk. The
As we mention in part 4, GPT-3.5, ChatGPT’s initial underlying
models generate responses based on input received,
LLM, was trained on material up to September 2021 and wasn’t
meaning there’s a risk they may provide false or malicious
connected to the internet. And though OpenAI has made it
content. As your employees use it, they need to be cautious
possible for ChatGPT to browse the internet in certain cases,
and review AI-generated content with a critical eye and
it’s still crucial to ensure human review and expertise is built
emphasis on quality assurance.
into the generative AI use process. Generative AI models can
If generative AI content contains inaccuracies that are not
be the core of an AI application but require additional analytics,
caught, this could impact your business’ outcomes or create
technology and human process around them to solve problems.
liability issues. For instance, Meta’s generative AI bot Galactica
In this section, we discuss the risks of using generative AI
was created to condense scientific information to help
models and applications and how to manage them, including
academics and researchers quickly find papers and studies.
around client and company confidentiality, employee misuse
Instead, it produced vast amounts of misinformation that
and phishing.
incorrectly cited reputable scientists.15 Another Meta bot,
BlenderBot3, was caught making false and biased claims16
Large multimodal models like ChatGPT generate human-like
shortly after its release in August 2022. As well, Google’s
responses. However, they lack human-like reasoning skills.
chatbot Bard caused parent company Alphabet to lose US$100
For them to be considered trusted, users are responsible
billion in market value after it shared incorrect information
for applying their AI capabilities to suitable use cases, and
during its first demo.17 ChatGPT hallucinating facts is also well
your organization should educate employees on using such
documented,18, 19 with developer OpenAI acknowledging its
programs. Equally important, developers should use reliable
ongoing shortcomings.20
data sets to train the AI models and apply relevant bias and
content filters.
Other risks around generative AI include the possibility that
the technology could generate sensitive information, such as
Risk managementpersonal data, that could be used for identity theft or to invade
one’s privacy. Even a disgruntled employee or angry customer
Generative AI’s growing popularity is another reason we
could create fake material to harm your company’s reputation
recommend developing and deploying AI in a responsible way
or that of one of your employees or executives.
if your organization wants to protect itself against misuse.
The following are some of the risk management challenges of
generative AI models.Generative AI evolves
As the world’s understanding of AI continues to evolve, we
Internal risks and considerationsare already seeing a rising number of global regulations. It’s
important to stay abreast of these, even if you don’t plan on
Breaking confidentiality and intellectual property
using generative AI intentionally.
Many generative AI models are built to absorb user-inputted
We expect that generative AI will continue to be integrated into
data to improve the underlying models over time, in essence
many common applications, systems and processes, ranging
helping them learn and build knowledge. That data, in turn,
from internet browsers to AI-connected technology that your
could be used to answer a prompt from someone else,
organization may license. Thus, it’s key to be vigilant and make
possibly exposing private or proprietary information to the
sure you don’t use AI professionally in a way that contravenes
public. The more your business uses this technology, the more
applicable laws (including privacy laws), client agreements or
likely it is others could access your sensitive or confidential
professional standards.
information. Thus, your organization needs to figure out how
Source
generative-ai-models-the-risks-and-potential-rewards-in-business.pdf
Domain
pdfs_from_pdf_links
Type
pdf
Method
camelot_stream
Dimensions
78 × 2
Page
10