• Samsung bans the use of artificial intelligence tools for most of its employees due to security concerns after confidential source code was leaked to ChatGPT.
  • Other companies have also banned the use of generative AI over similar concerns, including JPMorgan Chase, Bank of America, and Citigroup.
  • Chegg shares fell as its AI chatbot service hit its finances.

Samsung Electronics decided to ban the use of artificial intelligence (AI) tools for most of its employees after it was discovered that a group of workers uploaded confidential source code to ChatGPT.

The Korean company communicated the news to the employees this Monday, May 1, in an email seen by Bloomberg News.

A Samsung you are concerned that data copied and pasted on AI platforms such as ChatGPT, Google Bard and Bing will be stored for these services on external servers that third parties can access to analyze, disclose or find security flaws.

Everything was triggered after that at the beginning of last month, April, Samsung engineers accidentally leaked the internal source code when uploading it to ChatGPT.

In this context, the firm decided to send the memorandum prohibiting the use of generative artificial intelligence services.

In the text, Samsung acknowledges “the usefulness and efficiency of these platforms”, but also talks about “a growing concern about the security risk posed by generative artificial intelligence.”

Samsung isn’t the only company worrying about artificial intelligence and data breaches.

In early 2023, the OpenAI chatbot service triggered a similar decision at JPMorgan Chase, Bank of America, and Citigroup. These sides banned the use by their employees, who had started using AI for investment recommendations.

Italy also banned the use of ChatGPT over privacy concerns, although on Friday, April 29, it reversed the measure.

Samsung’s new decision prohibits the use of generative AI platforms on company PCs, notebooks, tablets and smartphones, as well as on its internal networks.

However, does not affect devices made by the company that are sold to consumers, like Android phones and Windows notebooks.

Beyond Samsung, problems with artificial intelligence at Chegg

This Tuesday, May 2, it was also known that the shares of the online learning service Chegg fell almost 40 percent after that company recognized that artificial intelligence chatbots were impacting its finances.

Indeed, in the financial report published by Chegg, the Los Angeles-based company said that its subscribers fell 5.1% in the first quarter of 2023 and that its revenues fell almost 8%.

Chegg is an on-demand question answering system widely used by schoolchildren and college students that costs $20 a month.

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