August 2022
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Considering AI - Read This

 

The applications of Artificial Intelligence (AI) are a prevalent topic in the design industry with firms exploring a wide range of uses. A recent industry survey revealed; 

 

  • 40% intriguing but no practical applications
  • 29% investigating potential uses
  • 17% no useful applications currently
  • 5% already using AI in daily operations

However - 90% are expect increased AI usage over the next three years with anticipated applications in design options, marketing, zoning compliance, and material selection. 

 

As design firms embrace AI, it is crucial to define the scope of its use and establish operational procedures. From a professional liability standpoint, firms must maintain standards consistent with other professionals in similar circumstances. While there have been no notable lawsuits involving AI use, experts predict that such cases may arise in the future, touching on professional practice and intellectual property issues. As professional ethics rules related to AI have yet to be formalized, firms must navigate existing regulations on competent practice and quality control. 

 

Establishing written AI practice standards is essential, outlining intended uses, oversight processes, and appropriate applications in conjunction with other technologies. Quality management techniques, such as research and vetting of AI content, are necessary to ensure accuracy and validity. 

 

Maintaining professional responsibility when using AI means exercising human oversight, responsible control, and upholding the standard of care. Caution against excessive reliance on technology without considering foundational expertise and experience is crucial. Continuous training on advanced technology and fostering a culture of learning within the organization can promote quality and efficiency. Understanding legal, regulatory, compliance, and ethical requirements is essential when developing AI policies, including data privacy and security obligations. 

 

The growing interest in AI among design firms has led to varied approaches, from outright prohibitions to dedicated AI development teams. While professional liability insurers have not limited coverage based on utilization, the impact AI has on the standard of care is a open item. Written AI policies are becoming more common, addressing usage guidelines, documentation of datasets, and continuing education for employees. Prohibitions on the input of confidential information without authorization and review of end-user agreements regarding output ownership are important considerations. 

 

AI is viewed as a tool that can aid in data collection and analysis but should not replace professional judgment. Understanding limitations, biases, and accuracy of AI datasets is crucial for evaluating outcomes. Policies should outline permissible uses, training requirements, and adherence to ethical guidelines. Intellectual property and confidentiality provisions should address input restrictions, ownership of output, and potential liability issues related to IP infringement. 

 

Recommendations

 

  • Establishing written AI practice standards is essential, outlining intended uses, oversight processes, and appropriate applications in conjunction with other technologies
  • Quality management techniques, such as research and vetting of AI content, are necessary to ensure accuracy and validity
  • Maintaining professional responsibility when using AI means exercising human oversight, responsible control, and upholding the standard of care
  • Understanding legal, regulatory, compliance, and ethical requirements is essential when developing AI policies, including data privacy and security obligations
  • Written AI policies, addressing usage guidelines, documentation of datasets, and continuing education for employees
  • Policies should outline permissible uses, training requirements, and adherence to ethical guidelines
  • Intellectual property and confidentiality provisions should address input restrictions, ownership of output, and potential liability issues related to IP infringement
  • Prohibitions on the input of confidential information without authorization and review of end-user agreements regarding output ownership are important considerations
  • AI is viewed as a tool that can aid in data collection and analysis but should not replace professional judgment
  • Understanding limitations, biases, and accuracy of AI datasets is crucial for evaluating outcomes

Conclusion

As design firms navigate the integration of AI into their practices, establishing clear policies and guidelines is essential to ensure ethical and compliant AI usage while upholding professional standards and responsibilities. By proactively addressing legal, regulatory, and quality control considerations, firms can harness the potential of AI while mitigating potential risks. 

 

You are welcome to forward this newsletter to others who may be interested. 
 
For more information on SmartRisk, risk assessments, an the services offered, please contact us. 
 
https://www.smartrisk.biz/contact-us/
 
NOTICE: This article is for informational purposes only and should not be construed as legal or professional advice. Please consult with a legal or professional in your area for advice regarding your firms individuals circumstances. 
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Rancho Mirage, CA 92270


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