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<v Instructor>In this lesson,</v>

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we will learn about AI usage risks.

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Artificial intelligence, or AI, usage risks

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are the potential dangers and unintended consequences

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that arise from the implementation and reliance

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on artificial intelligence systems.

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Risks of AI usage include overreliance,

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sensitive information disclosure to the model,

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sensitive information disclosure from the model,

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and excessive agency of the AI.

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Overreliance on AI can lead to situations

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where human judgment is undervalued,

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potentially resulting in decisions

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that overlook important contextual factors

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that AI cannot calculate for.

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Sensitive information disclosure to the model

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occurs when private or confidential data

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is input into AI systems without adequate safeguards.

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Sensitive information disclosure from the model

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involves the unintentional release of private data

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that the AI has learned during its training.

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Finally, excessive agency of the AI refers to situations

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where AI systems are given too much control or autonomy.

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Let's learn more about overreliance,

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sensitive information disclosure to the model,

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sensitive information disclosure from the model,

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and excessive agency of the AI.

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First, we have overreliance.

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Overreliance on AI happens when users place too much trust

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in the model's output without verifying the accuracy

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or considering other factors,

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such as contextual understanding, ethical considerations,

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limitations of training data,

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and unexpected environmental or external influences.

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This risk becomes significant

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when human oversight is minimized

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and AI predictions or suggestions

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are accepted without question.

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In fields like finance, for instance,

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an analyst may overly depend on an AI algorithm

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to generate investment recommendations,

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overlooking broader economic contexts

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or unusual market anomalies

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that the model may not factor in.

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This kind of unquestioned reliance

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can lead to decisions misaligned with real-world conditions,

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increasing the potential for financial loss

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or missed opportunities.

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In technical environments, overreliance on AI

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can also exacerbate preexisting data biases

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or structural gaps within the model.

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This is because many AI systems

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are trained on historical data,

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which can reflect past biases,

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limitations, or specific environments.

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So, if an AI model is trained

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on this type of historical data

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and is trusted over human judgment,

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particularly in complex or ambiguous situations,

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critical nuances may be overlooked.

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So instead, combining AI insights with human expertise

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ensures that decisions are both data-informed

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and contextually grounded.

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Second, we have sensitive information disclosure

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to the model refers to the risk of feeding private,

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confidential, or proprietary data into the AI

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without robust privacy controls.

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This is done by inputting data into the system

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without applying adequate encryption, anonymization,

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or role-based access controls,

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leaving the data vulnerable within the model.

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When sensitive data is entered into an AI system,

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it becomes part of the model's accessible data pool,

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which can lead to potential misuse

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if privacy safeguards are lacking or weak.

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Without stringent data protection protocols,

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this information is at risk of improper storage,

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unauthorized access, or unintended use

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within other processes relying on the model.

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For example, consider a customer service department

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that uses AI to analyze customer feedback

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and behavior patterns.

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If this system also receives sensitive customer details,

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such as financial information, health records,

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or personally identifiable data,

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without sufficient security mechanisms,

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the data could be vulnerable.

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This vulnerability may expose the organization

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to compliance risks or data breaches,

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especially in sectors governed by regulations

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like the General Data Protection Regulation

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and the Health Insurance Portability and Accountability Act.

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Without granular data access controls,

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information might be retained beyond intended uses,

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shared across unrelated processes,

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or susceptible to unintended model behaviors

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where sensitive insights might inadvertently be disclosed

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in generated outputs.

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So, to mitigate this risk,

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organizations should employ strict data anonymization,

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secure access controls,

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and clearly defined data usage guidelines.

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These safeguards not only protect privacy,

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but also ensure that sensitive data is handled in alignment

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with regulatory standards and organizational policies,

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reducing the likelihood of unintended disclosures

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and preserving data integrity within AI processes.

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Third, we have sensitive information disclosure

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from the model.

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Sensitive information disclosure from an AI model can occur

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when the model unintentionally releases private data

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it encountered during its training or operational use.

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This risk is particularly relevant

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for AI models trained on large datasets

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that include sensitive information,

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as the model could inadvertently reveal specific details

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about individuals, companies,

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or situations it learned from this data.

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For example, in a customer service setting,

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an AI assistant trained on historical chat data

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might draw from specific customer interactions

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to answer new inquiries.

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If the model recalls and reveals past details,

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such as an individual's account balance,

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recent transactions, or other private information,

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this could breach confidentiality,

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exposing sensitive data to unintended parties.

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Such incidents can arise in healthcare

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or legal applications where an AI trained

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on confidential case notes or medical records

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might unintentionally incorporate and reveal

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personal health information or legal details

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in responses to new users.

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This is particularly concerning in sectors

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with strict confidentiality standards and regulations,

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like the Health Insurance Portability

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and Accountability Act, or attorney-client privilege.

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So, to prevent such disclosures,

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AI models need robust mechanisms,

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such as differential privacy

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and strict data handling protocols, that can obscure

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or anonymize sensitive details from responses.

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Effective safeguards not only protect individuals' privacy,

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but also uphold the integrity and confidentiality

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required in professional and regulated environments.

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Fourth and last, we have excessive agency of AI

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occurs when a system is given too much autonomy,

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allowing it to make decisions or take actions

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without human supervision or intervention.

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This can be problematic

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if the AI operates beyond its intended scope,

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as it may make choices that are misaligned

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with organizational values or user expectations.

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An example of this can be seen in self-driving cars

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that are allowed to make all driving decisions.

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If the car encounters an unusual situation

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it wasn't trained for, it could make a decision

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with potentially dangerous consequences,

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underscoring the need for controlled autonomy.

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Similarly, in professional environments,

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AI should operate with limits on its decision-making power,

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enabling human oversight to guide, intervene,

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and align with the AI's actions

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with broader ethical and practical considerations.

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Balancing AI autonomy with human supervision

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ensures that the AI's agency is both effective and safe,

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reducing the risk of unintended or harmful actions

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and promoting outcomes that align

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with human goals and values.

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So, to prevent the excessive agency of AI,

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organizations should implement oversight mechanisms

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that restrict AI's autonomy through structured workflows,

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human-in-the-loop systems, and decision auditing processes.

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These well-defined supervised contexts

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ensure human review in critical decision-making processes.

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So, remember, artificial intelligence, or AI, usage risks

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are potential dangers that arise from relying on AI systems

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without proper controls or understanding.

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Key risks include overreliance,

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sensitive information disclosure to the model,

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sensitive information disclosure from the model,

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and excessive agency of the AI.

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Overreliance occurs when users trust the AI output too much,

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overlooking critical human judgment.

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Next, sensitive information disclosure to the model

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happens when private data is shared with AI

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without proper or adequate safeguards, risking misuse.

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Next, sensitive information disclosure from the model

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involves the unintentional release of private data

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that AI has encountered in training,

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potentially breaching confidentiality.

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Finally, excessive agency of the AI

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occurs when systems are given too much autonomy,

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potentially leading to unsafe or unaligned decisions.

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So, to address these risks,

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organizations should combine AI insights

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with human expertise, enforce strict data privacy protocols,

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and limit AI's decision-making power.

