This article examines several concepts that management should consider prior to exposing your corporate data to Artificial Intelligence (AI)
AI is finally mainstream in 2023, and protecting your company and customer's data is paramount. This article provides a high-level overview of concepts and risks that management should consider prior to implementing AI including security, compliance, data privacy, and cost.
Security: Cloud-based AI is generally considered to be more secure than internally hosted AI. Cloud providers have the resources to invest in advanced security measures, such as encryption, firewalls, and intrusion detection systems. They also have teams of security experts who monitor their systems around the clock. In contrast, internally hosted AI may be more vulnerable to cyberattacks if the organization lacks the resources to invest in robust security measures.
Compliance: Cloud-based AI can help organizations comply with regulations such as HIPAA and GDPR by providing built-in security features and compliance certifications. However, organizations must still ensure that they are using the cloud provider’s services in a compliant manner. Internally hosted AI may be subject to the same regulations, but organizations have more control over how they implement security and compliance measures.
Data privacy: Cloud-based AI can raise concerns about data privacy because data is stored on servers owned by third-party providers. However, cloud providers are required to comply with data privacy regulations such as GDPR and CCPA. Additionally, cloud providers often have more resources to invest in data privacy measures than individual organizations. Internally hosted AI may be subject to the same regulations, but organizations have more control over how they store and manage their data.
Cost: Cloud-based AI can be more cost-effective than internally hosted AI because it eliminates the need for organizations to purchase and maintain their own hardware and software. Additionally, cloud providers often offer flexible pricing models that allow organizations to pay only for what they use. However, costs can vary depending on factors such as the size of the organization and the complexity of the AI system.
Overall, both cloud-based and internally hosted AI have their advantages and disadvantages when it comes to security, compliance, data privacy, and cost. Organizations should carefully consider their needs and resources before deciding which approach is best for them.