5 Risks of Generative AI & How to Mitigate Them

Generative AI like DALL-E, GPT-3 and ChatGPT promises to revolutionize how we create and consume content. However, as with any rapidly evolving technology, there are risks involved that need responsible management.

In this comprehensive guide, we will outline the top 5 risks posed by generative AI systems, and actionable strategies to mitigate each one:

1. Accuracy – Generating false or misleading outputs

2. Bias – Propagating harmful stereotypes and representations

3. Data Privacy – Leaking sensitive user information

4. Intellectual Property – Copyright and plagiarism challenges

5. Ethics – Deepfakes, job loss and other concerns

Broadly, these risks arise from generative AI‘s lack of real world knowledge, amplifying biases in data, opacity around training data and methods, and unprecedented creation capabilities.

Read on as we dive into each risk category in detail, with data, examples and expert insights. We also provide concrete recommendations to guide responsible development and deployment of this powerful technology.

How Do Generative AI Models Work?

Before we analyze the risks, let‘s understand what makes generative AI so revolutionary.

Unlike traditional AI used for analyzing data or making predictions, generative AI can create completely new content like text, code, images, audio or video.

Leading examples include:

  • GPT-3 and ChatGPT: Language models trained on vast amounts of text data to generate human-like writing. ChatGPT can even converse naturally.
  • DALL-E: Generates images from text captions and descriptions.
  • Jukebox: Creates musical compositions and vocals based on genres, lyrics etc.

Under the hood, these systems use deep neural networks trained on massive datasets through a process called machine learning. They identify complex patterns in the training data and learn to produce similar outputs.

For example, an image generator would be trained on millions of captioned images to understand relationships between images and text descriptions. When given a new caption, it tries to generate a matching image.

The scale and quality of training data is key to generative AI‘s capabilities. Models like GPT-3 are trained on hundreds of billions of parameters!

But this immense power also opens up risks, which we‘ll analyze next.

Risk 1 – Inaccurate or Misleading Outputs

The first risk posed by generative models is generating plausible sounding but incorrect or misleading outputs. Since these systems don‘t truly comprehend semantic meanings, they can hallucinate answers that seem coherent but are false.

For example, ChatGPT has been known to respond confidently but inaccurately to various questions in domains like law, medicine and current affairs. A recent study found the model hallucinated answers for over 40% of difficult questions posed by lawyers.

According to anthropic, an AI safety startup, ChatGPT has an accuracy rate of just 72% to 76% on complex questions based on their internal testing. That‘s a high error rate for a system capable of generating vast amounts of content.

Generative AI‘s potential for inaccuracy arises from:

  • No grasp of semantics – Models mimic patterns without meaning.
  • Generalization vs specificity – Struggle with niche cases.
  • No fact checking – No inherent concept of truth.

This risk increases as models are scaled up in pursuit of ever-increasing capabilities. The Stanford AI Index report showed toxicity in model outputs rose 29% when model size increased from 117 million to 280 billion parameters:

Generative model toxicity trends

Toxicity in model outputs rises sharply with increase in parameters | Source: Stanford AI Index Report 2022

Another study published in Nature Machine Intelligence also found similar toxicity increases correlated to scale.

Without mitigation, inaccuracy and toxicity in outputs could have far-reaching societal consequences by spreading misinformation, harmful advice, and more.

Mitigating Inaccuracy Risks

There are a few strategies organizations can employ:

  • Curate training data carefully – Ensure datasets are high-quality, diverse and inclusive. Models trained on limited data amplify inaccuracies.
  • Perform regular incremental training – Continuously fine-tune models on new training data to improve accuracy, especially for newer topics.
  • Explain model capabilities and limitations clearly to users so they don‘t blindly rely on outputs.
  • Employ rigorous fact-checking pipelines – Validate all high-stakes model outputs through external subject matter experts prior to publication. For example, Anthropic employs a manual review process.
  • Develop techniques to indicate low confidence responses, so users are aware the system is hallucinating or unsure of the answer.

With the right data curation, training and safety protocols, generative models can produce outputs that are mostly accurate, safe and useful for millions of consumers and enterprises.

Risk 2 – Perpetuating Biases and Harmful Stereotypes

Since generative models derive patterns solely from their training data, another fundamental risk is propagating biases present in the original datasets.

Unchecked, generative AI could amplify:

  • Gender and racial biases
  • Harmful cultural stereotypes
  • Offensive portrayals of minority groups
  • Abelist assumptions

And more, leading to real-world discrimination and marginalization. Studies have already documented such harmful biases in systems like GPT-3.

For example, research from Stanford University found GPT-3 generates toxic, racist outputs when prompted with certain phrases:

Racist GPT-3 Outputs

GPT-3 generated racist content warning when prompted | Source: Stanford HAI

The root causes of bias include:

  • Low representation of minority groups in training data. Models interpret patterns based on what data is fed.
  • Unchecked amplification of statistical biases present in broader society. Even if certain biases exist at low levels in training data, models tend to amplify patterns disproportionately.

For example, one study found GPT-3 generated harmful Muslim stereotypes more than twice as often as positive statements.

The impacts of such biased systems can be deeply damaging:

  • Alienation of under-represented groups who see AI perpetuating toxic assumptions.
  • Reinforcing discrimination that marginalizes segments of society.
  • Eroding trust and adoption in AI as a beneficial technology.

Mitigating Bias Risks

Eliminating biases requires continuous rigour across the model development lifecycle:

  • Ensure diverse and inclusive training data: Actively source content created by minority groups and under-represented communities. Weights and Biases and Google Dataset Search are tools that can help.
  • Pre-screening datasets: Use techniques like sentiment analysis to flag potentially insensitive content for removal before training begins.
  • Ongoing bias testing: Continuously sample model outputs across use cases to detect the emergence of biases. Tuning prompts and seed content can help surface biases.
  • Enable feedback loops: Allow users and community representatives to flag model biases and have pathways to quickly remove toxic outputs and retrain models.
  • Independent audits: In addition to internal testing, enable external bias audits by third parties to gain new perspectives. Partnerships with civil rights groups and academic institutions can help.
  • Increase transparency: Release regular reports detailing efforts and metrics related to safety, accuracy and bias to build public trust.

With rigorous processes, generative AI can create value for all stakeholders in a socially responsible manner. But progress requires acknowledging and continuously mitigating risks.

Risk 3 – Data Privacy and Security Threats

Generative models are also prone to unintended memorization and reproduction of the massive datasets they‘re trained on, posing data privacy and security risks.

For example, researchers demonstrated that GPT-3 can memorize and reproduce parts of its training data verbatim:

"The researchers showed that they could get GPT-3 to reproduce specific lines from its training data, including news articles and lines from Wikipedia, by prompting it with relevant text."

Similarly, synthesized faces generated by AI inadvertently contained bits of celebrity faces used in training data:

"Kaliouby pointed out several examples where the AI had incubated identifiable elements of the original faces of Selena Gomez, Taylor Swift, and others in output images."

These data leaks happen because generative models attempt to reconstruct training examples based on input prompts and cues. Key risks include:

  • Exposure of personal data used in training like customer profiles or transactional data.
  • Copyright or legal violations by reproducing proprietary training content.
  • Reputational damage if organizations lose control of sensitive data.

Data leaks can occur in unexpected edge cases despite precautions taken during training. To consumers and enterprises trusting AI systems with their data, these risks represent deal-breakers for adoption.

Mitigating Data Privacy Risks

Some ways to safeguard data:

  • Anonymize datasets by removing personally identifiable information before use in AI training.
  • Employ differential privacy techniques that add controlled noise during training to prevent memorization of unique examples.
  • Train on synthetic data – Use AI to generate simulated training datasets.
  • Perform audits by prompting models with fragments of training data to detect potential memorization issues before launch.
  • Enable user feedback so consumers can report instances of personal data reproduction.
  • Clearly communicate how training data is managed and obtain appropriate permissions.

With growing reliance on AI, organizations must invest in data privacy and take every precaution to build trust.

Risk 4 – Intellectual Property Challenges

The unprecedented generative capabilities of AI systems also pose complex challenges around intellectual property (IP) rights and ownership.

For example, who owns the IP for:

  • A song composed by an AI system trained on existing songs?
  • A painting generated by an AI model analyzing the works of great artists?
  • A drug molecule designed by an AI that screened molecular data?

Since these outputs are not wholly original human creations, do traditional copyright laws even apply?

Even if copyright can be granted, issues around licensing and liability persist:

  • If an AI model is trained on copyrighted works, do the outputs automatically bear the same rights?
  • Could AI-generated works infringe IP rights by replicating protected elements?

To illustrate, an AI system created a new Rembrandt painting derived from analyzing the Dutch artist‘s works and techniques. But who can claim IP rights to this artistic output?

The Next Rembrandt

The Next Rembrandt – an AI generated painting based on Rembrandt‘s works | Source: Guardian

The explosion of AI-generated content also creates enforcement challenges:

  • Plagiarism: Human vs AI generated content may get blurred, leading to disputes.
  • Royalties and licensing: Complex to implement for dynamically generated outputs.

Mitigating IP Challenges

Technical and legal solutions are required to address these open questions:

  • Develop clear IP policies and laws for AI-generated works based on consensus among experts. WIPO, an agency of the UN, has already started this process.
  • Employ blockchain solutions to establish digital rights management and promote traceability. For example, AI authorship and licensing terms can be immutably recorded on blockchain.
  • Explain AI contributions by watermarking AI-generated content and noting data sources. This enhances transparency.
  • Obtain licenses for copyrighted data used in training models to comply with laws.
  • Actively participate in industry and government discussions around policies for IP and AI. The interests of AI practitioners must be represented.

With care and planning, policies will evolve to spur innovation while protecting rights.

Risk 5 – Ethical Concerns Around Deepfakes and Bias

The profound societal change potential of generative AI also gives rise to ethical concerns that demand deliberation:

Propagation of Deepfakes

Realistic fake media generated by AI poses risks like:

  • Disinformation via manipulated videos and images.
  • Reputational harm from synthesized inappropriate content featuring people.
  • Inauthentic influence through AI voice cloning etc.

Left unchecked, deepfakes can have corrosive impacts spanning fraud, harassment, and eroded trust online.

While there are malicious use cases, benign creativity would also get suppressed by outright bans.

The onus is on tech leaders to develop ethical solutions that allow AI creativity while curbing harms. Ongoing research into deepfake detection also offers hope.

Dehumanizing Creativity

Generative AI promises to augment human creativity with tools like visual AI assistants for artists.

However, excessive dependency on AI for creative tasks could:

  • Erode human ingenuity if we stop flexing creative muscles.
  • Cause job losses in creative fields if humans are displaced.
  • Homogenize culture and art if human elements get minimized.

Rather than handing creativity wholly over to AI systems, the goal should be complementary human-AI collaboration. Academic, policy and industry leaders are exploring solutions like training creators to leverage AI responsibly.

Environmental Impact

Training complex generative models consumes massive computing resources for thousands of hours.

For example, it‘s estimated that training GPT-3 emitted over 550,000 pounds of CO2, equal to the lifetime emissions of 5 average US cars!

The environment impacts of AI must be measured and managed, such as by transitioning to cleaner energy sources. Efficiency improvements in AI chips and systems can also help curb this risk.

With careful foresight and planning, the risks posed by generative AI are not insurmountable, and can be managed responsibly. But achieving this requires technology leaders to prioritize transparency, ethics and accountability across the AI development lifecycle.

The recommendations we have outlined will help mitigate the 5 key risk areas through continuous research, rigorous testing, system design choices, policies and user education.

Ultimately, generative AI offers immense opportunities to augment human ingenuity, creativity and progress. But we must proactively address the emerging risks, engage diverse voices and steer this transformation towards empowering all stakeholders.


The meteoric rise of generative AI brings with it novel capabilities and risks that society must responsibly address. We have outlined constructive strategies to mitigate key risks relating to accuracy, bias, privacy, intellectual property and ethics. But risk management must involve an ever-evolving, collaborative approach between policymakers, researchers, companies and communities.

With care, foresight and compassion, generative models can help create an abundant future, while mitigating risks that could erode trust and cause harm. We must acknowledge that this technology is still nascent, and solutions will involve continuous learning and progress. But the rewards of using AI for creativity and progress far outweigh the risks if stewarded diligently.

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