AI tools and SMEs: legal challenges

AI tools and SMEs: legal challenges

30 August 2024

The use of AI tools promises new opportunities and increased efficiency for SMEs, but there are also a number of legal challenges that must be considered.

AI tools and SMEs: legal challenges

The use of AI tools promises new opportunities and increased efficiency for SMEs, but there are also a number of legal challenges that must be considered.

The use of artificial intelligence (AI) also promises numerous benefits for SMEs, including the automation of tasks, the analysis of large amounts of data and the implementation of marketing campaigns. However, in addition to these advantages, SMEs must also address the legal issues related to the utilisation of AI tools.

The use of AI tools can have an impact on a number of legal areas. In the event that personal data is processed, the provisions of the Swiss Data Protection Act (DPA) and, where applicable, international regulations such as the EU General Data Protection Regulation (GDPR) must be adhered to. It is important to be aware of potential copyright issues, particularly in relation to training data and its use. Additionally, it is important to consider the potential risks of unfair competition, such as the possibility of a chatbot 'getting out of hand'. Furthermore, confidentiality and non-disclosure obligations must be respected in order to minimise the risk of confidential information being leaked.

SMEs should develop a clear strategy for the use of AI tools. This strategy should be based on the principles of transparency, purpose limitation, proportionality, confidentiality and legality. It is important to provide guidance to employees to ensure that AI tools are used in accordance with the law and the company's own ethical standards. Employees must be trained to understand the limitations of AI and to ensure that confidential or privacy-sensitive information is not processed inappropriately.

The EU's AI Act, one of the first comprehensive regulations on AI, may also be relevant for Swiss SMEs, especially if they offer AI tools in the EU or if the AI output is used in the EU. It is advisable for companies to familiarise themselves with the requirements of the AI Act at the earliest opportunity in order to avoid legal conflicts.

The use of AI tools offers significant opportunities for SMEs, but also poses legal risks. It is therefore essential to have in place a sound framework for the legal and ethical use of AI tools. This should include the formulation of policies, the implementation of risk assessment and approval processes for AI tools, and the regular review of applications in use.

With a well-thought-out strategy and clear guidance, SMEs can make the most of the opportunities offered by AI tools while avoiding legal pitfalls.