5 Major Reasons Companies Are Banning The Use Of ChatGPT

Written by Senoria Khursheed ·  2 min read >

Despite having so many capabilities, many companies have banned chatGPT and restricted their employees from using chatGPT. Since its launch, it has taken the world to the next level. Companies are incorporating chatGPT for daily tasks and to boost employees’ productivity. But certain risks are associated with chatGPT. After realizing the facts and risks associated with the technology, several companies have prohibited using this chatbot in the workplace.

ChatGPT has proven itself to be highly beneficial for individuals facing time constraints. Software engineers find chatGPT valuable for tasks such as testing, writing, or debugging code despite the technology’s error propensity.

Recently, Samsung has prohibited using chatGPT and other generative AI tools at the workplace. In addition, Amazon, JPMorgan Chase & Co, and Apple have followed Samsung’s footsteps and banned the use of chatGPT. However, law firms, hospitals, and government agencies have also prohibited employees from using all generative AI tools


Here we are bringing the major reasons why companies have banned the use of chatGPT

Data Safety

ChatGPT works on the data derived from the internet. OpenAI’s help page states that “every piece of data, including confidential customer details, trade secret, and sensitive business information, you feed the chatbot is liable to be reviewed by its trainers, who may use your data to improve their systems.”

Many companies are very concerned and strict about their data protection. As a result, they are very cautious while sharing files and leaking personal information to third parties.

OpenAI doesn’t offer any foolproof data protection. In March 2023, OpenAI confirmed a bug that allowed some users to see the chat titles in the histories of other OpenAI users. However, the company fixed the bug, but it became very cautious. In contrast, the company has a guarantee of data safety and privacy.

Many companies have stopped their employees from using chatGPT to avoid data leaks. This automatically damages the company’s reputation and puts its employees and customers at risk.

Cybersecurity Risks

It is still unclear whether chatGPT is prone to cybersecurity risks. Its execution within a company may introduce potential vulnerabilities that cyber attackers can exploit.

When a company incorporates chatGPT in its operations, there are weaknesses in the chatbot’s security system; attackers may be able to exploit the vulnerabilities and inject malware codes.

ChatGPT’s ability to generate human-like responses is an overwhelming opportunity for hackers to take over an account to device company employees into sharing sensitive data.

Creation Of a Personalised Chatbot

ChatGPT is full of innovative features, and chatGPT may produce false and incorrect information. Many companies have created their chatbots for multiple purposes. For instance, the Commonwealth Bank of Australia instructed its employees to use instead of a chatbot using Commbank’s information to provide answers.

Companies, including Samsung and Amazon, have created their chatbots to prevent the data and reputational consequences associated with mishandling data.

Lack Of Regulation

Regulatory guidance is very much essential to avoid any risk. Companies suing chatbots can face several issues related to data leaks.

On the other hand, a lack of regulation can destroy a company’s accountability and transparency of data. Companies are very concerned about their data and, on that basis restricting chatGPT, fearing Potential violations of company-specific regulations and privacy laws.

Irresponsible Use By Employees

Employees feel freedom while using chatGPT and don’t care about giving the company’s sensitive information to chatGPT. Being dependent on AI will lead to laziness in the work environment.

Being too dependent on chatGPT can hinder employees’ ability to think critically, as chatGPT can not give 100% accurate results. Undeniably, ChatGPT is a powerful tool that helps solve complex queries that require domain-specific expertise that can destroy a company’s efficiency and performance.

Employees become dependent on chatGPT and may need to remember to check and verify answers provided by the chatbot.

To mitigate the abovementioned issues, companies don’t want to rely on chatbots and place bans so that employees can focus on their tasks and provide error-free work.

Better To Be On The Safe Side

Companies banning chatGPT indicate cybersecurity risks, employee productivity, and regulatory compliance challenges. Therefore, many companies prohibited the use of chatGPT. On the other hand, companies are making their secured chatbots to avoid potential data breaches.

Read more:

OpenAI Brings ‘Bing Search’ To ChatGPT:To Get The Latest Information

ChatGPT Can Replace IT Network Engineers:Here’s How?