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AI in B2B Software? Risks and Liability*
The use of AI in B2B software, such as operating systems for airfields, flight schools, and fleet operator, seems very practical and helpful. Suddenly, fast and comprehensive analyses of existing business data are made possible by AI analysis assistants. Via database interfaces such as MCP, an AI like OpenAI ChatGPT or Anthropic Claude, customer databases are accessed directly, usage analyses are performed, and charts or reports are generated. Convenient.
But wait: Business data is inherently sensitive, but above all, it also contains customer data. This customer data is protected by law. The company which uses this data is legally responsible for its protection. In particular, the European General Data Protection Regulation (GDPR) and the Swiss Data Protection Act (FADP) impose strict requirements on the use of AI technologies.
Most modern AI services rely on cloud infrastructures from US-based providers. If personal data is transferred to third countries without an adequate level of protection, strict requirements apply. In particular, certain sensitive data may not be transferred without the unrestricted consent of the persons.
Data usage has to be limited to a specific purpose. Furthermore, just the data absolutely required to perform the task is permitted to be used. AI models (especially LLMs) require vast amounts of data for training and operation. When B2B software processes sensitive business or customer data, there is a risk that this data and even more data than required will be used contrary to the original purpose of collection, for instance, to further develop the software vendor’s AI model.
B2B software vendors often rely on third-party providers for their AI components, as mentioned above. Customers must thoroughly verify whether this is legally compliant and who else (which third-party-companies) have access to the data.
Due to these multifaceted risks, Redcrest Solutions GmbH has decided for the time being not to implement AI in its products - especially not from US-based providers. Furthermore, our server locations are situated exclusively on the European continent.
Does this mean you have to forgo convenient evaluations and queries? Not at all. In Flying Fleet, we provide this convenience through our exclusively developed Data Explorer. This allows for arbitrary queries and analyses of your own data using semantic expressions, which can also be saved for future reuse. We are continuously enhancing this analysis tool to make it even easier to use. Naturally, no data is ever transferred to foreign AI systems when using it.
Click here to learn more about our Data Explorer.
*This explicitly does not constitute legal advice.