ChatGPT and Risk Management

Learn about the potential risks associated with ChatGPT and discover strategies to manage and mitigate these risks effectively.

As one of the most promising AI tools, ChatGPT offers immense potential for businesses across various industries. However, it also presents risks such as providing factually inaccurate information, misleading content, insufficient responses, cyber threats, and data leaks. By remaining vigilant and employing effective strategies, you can mitigate these risks and harness the power of AI to elevate your business. This article offers tips and best practices for incorporating ChatGPT-type machine learning into your business.

Collect and Store Only Necessary Data

The first strategy for data privacy readiness should simplify your business’s data processing aspect. It might sound tempting to own a vast pool of data you can access anytime and for any purpose, whether marketing, understanding consumer needs, creating business strategies, or simply selling to second or third parties for monetary benefits. But, the more data you collect, the more it becomes difficult to map, sort, and protect. Plus, some data privacy laws, such as GDPR, mandate that businesses must collect and store only the absolutely necessary data.

For example, if you are collecting data for creating sales leads or email marketing and the source of data collection is a downloadable PDF, you only need a person’s full name and email address. You don’t need to collect other personal information such as religious beliefs, past shopping history, browsing history, biometric data, etc. When you collect data you don’t need, you violate privacy laws. Further, you also make yourself prone to severe penalties and legal actions if the data gets leaked and/or misused.

Data Protection Officers

Its ability to provide human-like responses has helped ChatGPT gain worldwide acceptance in automating customer services. It is multilingual, and it can handle a tremendous volume of traffic. It can respond to repetitive questions and even continue a conversation in a way that could be hard for users to figure out if they are chatting with a bot. And that’s an outstanding achievement because people love the personal attention and human interactions.

However, when talking about the risks, ChatGPT can sometimes behave like your uncle, responding in a highly affirmative and convincing tone without fact-checking things. Such responses could confuse or mislead your users or annoy them. It might even offer monetary compensation to annoyed users or promise them something you wouldn’t want to provide otherwise.

What to do to mitigate these types of risks?

Provide adequate training to the model on handling specific queries. To do this, gather as much customer service data as you can. Use your data, i.e., the records of how your human customer service representatives have responded to queries. Use data from chat logs, email exchanges, videos, phone transcripts, etc. This information will help the model learn how your company interacts with people.

Train the model to learn specific language or terminology used in your business, company, etc. This will help it generate better responses.

Train the chatbot not to respond to certain types of queries (those asking for monetary compensation, refunds, etc.) and warn the customer service representatives to look into the matter urgently instead.

Once you have trained the model, test it thoroughly. Evaluate its performance by asking as many types of queries as possible. You can use past data to see what questions people ask.

Keep monitoring its performance and improving it whenever necessary.

You may mention to the users that they are chatting with a bot, so they would know what to expect.

Ensure Data Privacy and Cybersecurity

While responding to customer queries, ChatGPT may have to collect, process, and store your users’ personal data, such as their name, email, contact number, purchase history, medical information, etc. If not protected adequately, this data could leak pretty easily. Plus, spammers could steal this data and send phishing/spam/derogatory emails to your customers using your identity. They could send malware or steal personal data such as credit card details and passwords.

To prevent the risk of data leaks and cyber attacks, you must implement robust data security measures such as ISO/IEC 27001. You must also comply with CCPA, GDPR, or other relevant laws and regulations. Compliance with these laws and standards will prevent unauthorized access to those data. Suppose you are already complying with these standards. In that case, you need to audit your preparedness again and include the ChatGPT data too.

If you are a small-size business that isn’t required to comply with these laws, you can still do many things to ensure data protection. Some suggestions include using a two-factor authentication process, strong passwords, a highly reliable antivirus, cybersecurity monitoring, etc. Do not hesitate to seek professional help.

ChatGPT can generate inaccurate, misleading content

Since Google has stated that it is not against ChatGPT-generated content, provided it meets its EEAT standards, ChatGPT has gained tremendous popularity as a content creation tool. However, OpenAI, the company that developed ChatGPT, has admitted that it may generate factually inaccurate, misleading, and biased output. If that happens, the content will not meet Google’s quality standards and may get your website penalized.

Not just accuracy, millions of users have concluded that the ChatGPT content needs more perception, i.e., it doesn’t provide a clear context to the readers. The content is often fluffy with very little value. It lacks a human touch. The content is often dry, with no emotions and no unbiased opinion.

To mitigate these risks, here are a few things that you can do:

Learn how to use the right prompts to generate the best-quality content. Prompts are the inputs you give, and needless to say, the better the prompts are, the better the output will be.

Do not use content generated by ChatGPT without using human editing.

Instead of using ChatGPT as a writing tool, use it as a writing assistant. Use it to generate article outlines, research data, and stats, find quotes, and create a rough draft. You can then use the draft and your research to write an article that makes sense to the readers and meets Google’s guidelines. ChatGPT can create catchy headlines and titles. It can proofread your content. This way, it can help save your time and brainstorming.


The risks discussed in this article are not exclusive to ChatGPT but apply to AI language models in general. By understanding these potential issues and implementing the strategies outlined, you can effectively manage and mitigate risks associated with using AI tools in your business. Remember, it is crucial to not rely solely on AI like ChatGPT but instead combine its capabilities with human supervision and intervention to achieve the best results. By doing so, you can maximize the potential of AI while minimizing potential problems and ensuring your business thrives in today’s technology-driven world.