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  • Writer's pictureRobert Strauss

Understanding the Privacy Implications of Open AI Systems vs. Closed Systems Like Proforce Ledger

In the rapidly evolving landscape of artificial intelligence (AI), understanding how different systems handle user data, especially confidential information, is crucial. Open AI systems such as ChatGPT or CoPilot by Microsoft, and closed systems like Proforce Ledger, offer contrasting approaches to data management and privacy.



Open AI Systems

Open AI systems, including popular ones like ChatGPT and Microsoft's new CoPilot, are designed to learn continuously from user interactions. This learning process is essential for improving the accuracy and relevance of their responses. However, this raises important privacy concerns.


Data Learning and Sharing

These systems process and analyze the data provided during interactions. While this data helps in refining the AI's performance, there is a potential risk that the AI could learn and inadvertently share sensitive information. If a user shares confidential data such as a unique or proprietary financial process, the AI might incorporate this information into its learning model, potentially leading to unintended sharing in future interactions with other users.


Privacy Agreements and User Awareness

Most users engage with these platforms without fully reading the privacy agreements. This oversight can lead to misunderstandings about how their data is used. These agreements typically outline the scope of data usage, including how it's stored, processed, and potentially shared. Users should be aware that their interactions could contribute to the AI's learning database, which may be accessed by a wide range of users.


Closed Systems: Proforce Ledger

In contrast, closed systems like Proforce Ledger operate differently. And this is particularly important in the context of life insurance and investments.


Data Containment

The key attribute of Proforce Ledger's closed system is that the data never leaves the server. This means that any confidential information input into the system remains within the confines of that specific environment. It is not used to train the AI in a way that would expose the data to other users or applications. Moreover, Proforce Ledger goes one step further by agreeing in its privacy policy not to share such information with any third parties such as marketing organizations.


Focus on Mathematical Predictions

Proforce Ledger's primary function is to enhance mathematical predictions for its current users, specifically in the Financial Services industry. The closed nature of the system ensures that all learning and data processing are dedicated solely to improving predictions for its users, without the risk of external data exposure.


Recommendations for Users

  1. Read Privacy Policies: Understand how your data will be used. This is crucial in open AI systems where your data could contribute to a broader learning database.

  2. Be Mindful of Shared Information: Especially in open AI systems, avoid sharing sensitive or confidential information.

  3. Understand the System's Nature: Recognize the difference between open and closed systems. For instance, a closed system like Proforce Ledger provides a more secure environment for sensitive data.

  4. Stay Informed: As AI technology evolves, so do its implications for privacy. Regularly update your knowledge about these systems.

Conclusion

In summary, while open AI systems offer extensive learning capabilities, they pose potential risks for data privacy. Closed systems like Proforce Ledger offer more security for confidential information but may have limited learning scope compared to their open counterparts. Users must navigate these systems with an informed understanding of their data privacy implications.

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