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Technology
14 August 2024

Companies Tackle Data Privacy And AI Risks

Organizations pivot toward hybrid and on-prem solutions amid growing concerns over control and security

A seismic shift is occurring within the realms of technology and business as organizations adjust their strategies amid rising concerns over data privacy and security. Many businesses are increasingly turning to hybrid and on-premises IT infrastructures to regain control over their data.

This move marks a significant turn from the cloud-dominance of recent years, prompted significantly by fears related to artificial intelligence's (AI) influence on data security. Organizations are beginning to recognize the importance of managing their own IT data networks, instead of merely relying on third-party cloud services.

One of the key voices behind this trend is Hang Tan, the hybrid cloud chief operating officer at Hewlett Packard Enterprise. He notes, "We're seeing more demand for on-prem," emphasizing the necessity for customers to create more hybrid environments.

Despite the growing interest in on-premises solutions, it's important to clarify this doesn’t mark the end of cloud solutions. Rather, many organizations are blending both approaches to balance the control they desire with the benefits of cloud services.

The challenges surrounding data management are multifaceted, including security concerns and new regulations manding higher accountability from organizations about their data handling practices. Peter Wang, co-founder of data management software Anaconda, states, "It's more about the governance of infrastructure, including data, networking, and servers. Who manages it? Who gets to say, 'No, absolutely, you can't do this?'"

There are extensive variations in these perspectives based on the size and industry of organizations. For example, sectors like education and healthcare are exploring on-premises solutions primarily due to economic concerns.

Hinton, famously dubbed the “godfather of AI,” has been vocal about the potential risks of AI technologies. He recently quit his position at Google to advocate for greater awareness of these dangers and highlighted various scenarios where AI systems could disrupt numerous aspects of society.

According to Hinton, these risks aren’t simply hypothetical; he believes increased automation through AI could cause widespread job losses, similar to past industrial revolutions. He argues, "There’s going to be massive job losses, just as the Industrial Revolution made machines stronger than us," which positions AI as both innovative and potentially destructive.

Despite some experts doubting the extent of job losses from AI, many are already witnessing shifts within their industries. The rise of AI tools is allowing organizations to automate tasks previously performed by humans, leading to reduced demand for roles like copywriters and paralegals.

Hinton also voices apprehensions about the role of AI in spreading misinformation. He suggests creating intentional fake videos stating their fabrications as preventive measures against AI-generated misinformation, particularly during elections.

Adding to the risks associated with AI technologies are concerns over cybersecurity. Hinton opposes the trend of releasing AI model weights publicly—calling it potentially dangerous as it could empower cybercriminals to exploit these systems.

The current regulatory framework tends to overlook military applications of AI, leading Hinton to advocate for stringent controls and bans on AI-enhanced weapons technology. His broader vision includes designing AI systems to coexist with humans rather than allowing them to become uncontrollable entities.

Alongside what Hinton flags, the emergence of startups like Profound shows the business world’s adaptation to the AI wave. Launched this year, the New York-based company focuses on helping brands navigate their presence within AI search environments.

Profound aims to capitalize on the changing dynamics of online search, particularly as consumers lean more toward AI-driven channels. By tracking common search queries and providing insights on how brands can optimize their visibility within AI systems, the platform seeks to fill this gap left by traditional search engine optimization (SEO).

Profound’s founders, James Cadwallader and Dylan Babbs, are leveraging their experiences to support brands like Nike, which spends billions annually on marketing. Cadwallader noted, "If I’m asking ChatGPT for a running sneaker, it will give me four or five suggestions," demonstrating the urgency for brands to establish their digital identities position.

Hinton's insights and the emergence of platforms like Profound reflect broader trends within both technology innovation and corporate strategy. Companies are not only grappling with how to effectively use AI but also how to manage its inherent risks adequately.

The global conversation around the use of AI ecosystems is intensifying. Governments and businesses alike are reassessing their data strategies to balance innovation with the security and ethical challenges AI presents.

Striking this balance is becoming increasingly critical. For industries shifting back to on-prem infrastructures, ensuring they possess control over data management remains at the forefront of their agendas.

Overall, as businesses forge new paths amid increasing technological advancements, the combined perspectives of AI experts and practitioners will significantly shape our future digital landscapes. Navigators of this technological revolution will need to remain vigilant and adaptable to unattended risks as they emerge.

What remains clear is the pressing demand for thoughtful dialogue surrounding AI, data privacy, and the ethical governance of technology both from the private sector and regulatory bodies. The ultimate aim is to cultivate systems where AI not only enhances efficiencies but also safeguards individual rights and societal norms.

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