Technology is advancing and becoming more creative at a rapid pace. Artificial intelligence (AI) is one such technology. The technology known as "generative AI" is a type of machine learning that combines text, graphics, and other content. Businesses must act sensibly to prevent any negative effects from trade secret exposure. Prohibiting the use of generative AI may be one way to solve the problem, but there are other steps a business may take to keep its trade secrets hidden.
Trade secrets are proprietary firm details that aren't widely used in the market to unfairly advantage competitors. It shouldn't be conspicuously obvious. Trade secrets now enjoy more protection in the intellectual property domain than they do under patents. Trade secrets are assets of great value that provide businesses with a competitive edge.
Trade secret protection law is governed by treaties such as the North Atlantic Free Trade Agreement (NAFTA) and the Agreement on Trade-Related Aspects of Intellectual Property (TRIP).
AI may pose a risk to a company's trade secrets if one of its employees uses generative AI apps and mistakenly divulges critical information. AI can record and keep the information that people provide, and they are unable to remove the information from AI. The program may make use of the information gathered or examine the information about the AI program. AI's capabilities are always evolving and expanding as technology progresses. The capabilities of the AI system are unknown, not even to its creators.
To safeguard any knowledge as a trade secret, the receiving party must expressly promise confidentiality before the revelation of the trade secret. Utilizing generative AI systems prevents this from happening since the recipient is not a single person.
If the receiving party is a generative artificial intelligence system, the same outcome will occur if a specific piece of information is provided to them in a situation where they knew or had reasonable suspicion that the information was meant to be kept private. The receiving party is not a person; hence, there is no protection. Rather, the unprotected revelation of the knowledge to a third party tarnishes its position as a trade secret.
Trade secrets are valuable but brittle resources. Once lost, a trade secret cannot be recovered. Trade secrets about input and output will be destroyed when generative artificial intelligence is used, as a person and a computer cannot have a confidential connection. Trade secrets could only be safeguarded by an outright prohibition on the use of generative artificial intelligence systems.
Although generative AI might put a company's trade secrets in danger, it also has a huge amount of potential to boost creativity and productivity. Because of these potential advantages, businesses that outright forbid generative AI may find themselves at a severe competitive disadvantage when compared to businesses that permit or promote its use. Thus, companies need to carefully consider the advantages and disadvantages of generative AI for their operations.
Several technologies can further guard against the disclosure of trade secrets with generative AI, in addition to a company's regular practices for trade secret protection. When utilizing generative AI, businesses need to have appropriate data protection policies and procedures in place, and they also need to make sure that their contractors and staff are aware of these policies. Businesses must also investigate the adoption of strong encryption methods, such as zero-knowledge proof technology, to stop illegal access to data kept by them in generative AI systems.
Trade secrets can be further protected against disclosure through generative AI with several solutions, in addition to a company's standard rules. Employers who use generative AI must make sure that their contractors and staff are aware of the appropriate data protection policies and procedures. To avoid illegal access to firm data contained in generative AI systems, businesses must also investigate the use of strong encryption approaches, such as zero-knowledge-proof technology.
It is essential to educate staff members on the value of trade secret protection and the dangers of generative AI. Employers need to train staff members on the proper ways to use generative AI apps, as well as the possible dangers and repercussions of entering sensitive data into these programs.
There is currently more that can be done to prevent employees from disclosing firm trade secrets. According to reports, 70% of workers who utilize generative AI technologies don't tell their employers about them. This issue shows that, in the wake of the generative AI explosion, many companies have not yet implemented strict restrictions. Businesses can get ready for the increasing usage of generative AI applications by updating their trade secret protection procedures.
The emergence of generative AI presents tremendous potential, but it also presents certain challenges for maintaining trade secrets and private firm data. Companies should adopt strong security measures, set clear regulations, and promote an awareness-based culture to reduce the risks associated with using generative AI, regardless of whether they decide to outright forbid, restrict, or permit its usage. Businesses can protect their priceless intellectual property assets and keep their competitive edge in the rapidly changing AI market by proactively tackling these issues. Additionally, businesses need to make sure that all subcontractors and outside parties abide by their generative AI rules.
