Spooked by data leak, Samsung bans use of ChatGPT, other AI tools

Alarmed by a recent accidental data leak, Samsung Electronics Co. has banned one of its biggest business divisions from using ChatGPT and other generative artificial intelligence tools.

Samsung, the world’s largest manufacturer of memory chips and smartphones, last Friday notified its employees at the Device eXperience (DX) division of the ban put in place on concerns that internal data, often confidential, used by Samsung employees on the AI platforms could end up in the wrong hands.

The DX division oversees Samsung’s smartphone and home appliance businesses.

“Interest in generative AI platforms such as ChatGPT has been growing internally and externally. While this interest focuses on the usefulness and efficiency of these platforms, there are also rising concerns about security risks presented by generative AI,” Samsung said in a memo sent to DX employees on April 28.

“We’re reviewing security measures to create a secure environment for safely using generative AI to enhance employees' productivity and efficiency. Until these measures are prepared, we are temporarily restricting the use of generative AI.”

Under the new policy, Samsung executives and other employees at its DX division won’t be allowed to use ChatGPT, Google Bard and Bing AI chatbot on their desktop computers, tablets and smartphones at their workplace.

Outside the company, they are also banned from typing in company and personal information related to their work when using generative AI tools.

ACCIDENTAL DATA LEAK AT SAMSUNG

The new policy comes after a Samsung engineer earlier this year accidentally leaked internal source code, a business secret, by uploading it on ChatGPT to check it for technical errors.

Previously, the Suwon, South Korea-based company allowed its engineers to use ChatGPT to help fix problems with source code.

Samsung’s Device Solutions (DS) division, which includes its semiconductor business, does not entirely ban its employees from using generative AI tools, but is now significantly curtailing the use of such platforms, company officials said.

According to a Samsung survey conducted last month, 65% of the respondents said they believe generative AI tools pose a security risk.

Samsung said it is working to develop its own AI tools for internal use.

The company is also working on such tools for translation, document summary and software development, it said.

Samsung is the latest big Korean company to publicly express concerns about the use of generative AI tools and privacy fears.

In Korea, SK Hynix Inc., the world’s second-largest memory chipmaker, and POSCO Holdings Inc., Korea’s top steelmaker, have already banned their employees from using generative AI chatbots at work.

Some Wall Street banks, including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc., have either banned or restricted the use of ChatGPT and other generative AI platforms.

Write to Ik-Hwan Kim at lovepen@hankyung.com

In-Soo Nam edited this article.