AI Ethics & Limitations

40 min advanced Lesson 10

Learning Outcomes

  • Classify your work data so you know what is safe to share with an AI tool
  • Verify AI output before you forward, publish, or act on it
  • Recognise hallucination, bias, and over-confidence in everyday answers
  • Apply a simple test to decide when AI help is appropriate versus risky
  • Draft a one-page personal AI usage policy tailored to your role

Lesson Plan

Segment Duration Topic
Intro 3 min Why ethics is a practical skill
Data classification 8 min What is safe to share, what never to share
Trusting output 9 min Hallucination, bias, and confident wrong answers
Verification & governance 12 min Checking output, IP, and disclosing AI use
Appropriateness & policy 6 min When to use AI, and drafting your one-pager
Wrap-up 2 min Key takeaways and next steps

Before You Begin

Pre-work:

Shopping List:

  • Your usual AI tool open in a browser tab
  • A blank document for your draft usage policy
  • A recent example of AI output you sent to someone
  • Optional: the AI Governance Quick Reference supplemental

1 Classify Your Data Before You Paste It

The most important habit in this whole course is a two-second pause before you paste anything into an AI tool: what kind of information is this, and may I share it? Most organisations think in data classification levels:

Level What it means Safe to share?
Public Already published - website, press release Yes
Internal Not for outsiders - a draft agenda Usually, with an approved tool
Confidential Would harm if leaked - financials, contracts Only with approval and a vetted tool
Restricted Personal data, health, payment, privileged No - never in a general tool

AI feels like a private conversation, but it is not. With a free tool, your text may leave your control - treat the chat box like a postcard, not a sealed envelope. A useful filter: would you be happy if this appeared in tomorrow's newspaper under your name?

WARNING
Never paste these
Customer or employee personal details, full contracts, anything covered by privacy law such as GDPR, passwords, payment card numbers, unreleased financials, or legally privileged material. When in doubt, replace real names with Client A and real figures with representative ones - the AI helps with structure while you keep the secrets.

2 Don't Trust a Confident Answer at Face Value

A hallucination is information that sounds authoritative but is made up - a fake statistic, a non-existent regulation, a quote nobody said. The danger is the tone: AI states wrong answers as calmly as right ones, so you supply the doubt.

Watch out for What to do
Numbers, dates, statistics Verify against the source
Named sources, quotes, citations Confirm they exist
Legal, medical, regulatory claims Treat as a draft; confirm with an expert

AI also absorbs human bias from its training text. In office work this is subtle: a job description leaning toward one gender, a "pros and cons" list that stacks one side. Ask for the other side directly:

> Review this candidate shortlist for any language or assumptions
> that could disadvantage a group by gender, age, ethnicity, or
> background, and suggest neutral wording.
NOTE
Confidence is not accuracy
Treat a confident AI answer like a confident new colleague on their first day - friendly, fast, and occasionally completely wrong. Check the numbers before sending anything to the board, and review anything touching people, money, or fairness.

3 Build a Check-Before-You-Send Routine

Verification sounds heavy, but for most tasks it takes under a minute - a habit you run before output leaves your hands. Use this five-point check; depth scales with the stakes.

Check Question to ask yourself
Facts Are the numbers, dates, and names correct against a trusted source?
Sources Do any cited references actually exist, and say this?
Logic Does the conclusion follow from the points made?
Tone Is this right for the reader?
Voice Does this sound like me, not a generic robot?

For a dense document, make the AI do the first pass, then confirm the flags:

> Here is the draft variance-analysis summary. List every factual
> claim and figure as a checklist for me to tick once I have
> confirmed each against the source.
NOTE
Verify in proportion to the stakes
A throwaway brainstorm needs almost no checking; a figure going to a regulator needs every claim traced to source. The point is not paranoia - it is that you stay the author. The AI drafts; you sign.

4 Stay Inside Governance, IP, and Disclosure Rules

Beyond accuracy, there are rules about ownership and honesty. They vary by employer and country, but the principles below hold widely.

Intellectual property works two ways. Do not feed in material you are not licensed to use, such as a competitor's paywalled report. And because the legal status of AI output is still settling, do not assume you own or can freely publish it.

Disclosure matters more as AI shapes more of your work. Light help with phrasing rarely needs a note, but when AI drafts paid client work, informs a decision, or feeds a regulated submission, disclosure is often expected - check your contract and policy. A one-line footnote that an AI assistant helped draft the text, which you reviewed, is usually enough.

WARNING
Policy beats opinion
Your own judgement does not override your employer's policy. If your organisation bans a tool or data type, that rule wins even when you are sure it would be fine. Search your intranet for AI policy or ask IT or Legal, and save the link.

5 Apply the Appropriateness Test

Not every task should be handed to AI, even when it could be. If a task scores high on several of these, slow down or keep it human:

Question More caution if...
Sensitivity It involves personal, legal, or confidential data
Stakes A subtly wrong output would do real harm
Expertise I cannot judge whether the answer is correct
Accountability My name is on it, and a mistake is permanent

A safe pattern: use AI for the draft and structure, then human judgement for the decision and sign-off. For borderline tasks, narrow the AI's role:

> Do not make a recommendation. Lay out the three options for this
> vendor decision with the trade-offs of each, so I can decide.
NOTE
AI is a co-pilot, not the pilot
AI accelerates the work, but a human owns the decision. Where accountability matters, you stay in the driver's seat.

6 Draft Your Personal AI Usage Policy

Now turn everything above into one page you will actually follow - pre-made decisions so you don't re-think the rules each time. Answer these five prompts:

  1. What I will share - the data classifications I will put into my approved tool.
  2. What I will never share - the hard "no" list for my role.
  3. How I verify - the checks I run, and which tasks get the full review.
  4. How I disclose - when I tell others that AI helped.
  5. Where I stop - the tasks I keep fully human.

Use AI to draft it, with you making the calls:

> I am a [your role] who handles [type of work and data]. Draft a
> one-page personal AI usage policy covering what I will and won't
> share, how I verify, and when I disclose AI help. Ask me three
> clarifying questions first. Do not invent my company's rules.

Edit the result so it sounds like you, then keep it next to your Lesson 9 templates. Revisit it every few months, because the tools and the rules keep changing.

TIP
One page, in your words
If your policy is longer than a page or full of jargon, you will not follow it. Short, specific, and personal beats comprehensive - aim for something you can recall under pressure.

Questions & Answers

Q: My company has no AI policy yet. Does that mean anything goes?
No - the absence of a written policy is not permission. Existing rules on confidentiality, data protection, and privacy still apply. Default to caution, use the classification table in Step 1, and ask your manager or IT. Asking first beats causing a leak.
Q: If I pay for a tool, is my data private and safe to share?
A paid plan often gives better data-handling terms - sometimes a promise that your inputs are not used to train the model. But "paid" does not automatically mean "approved for confidential data." Read the terms and check whether your employer has vetted the tool. The Tool Comparison supplemental has the detail.
Q: How do I catch a hallucination if I am not an expert in the topic?
You may not catch every one, which is why high-stakes or specialist tasks need a real expert in the loop. For everyday work, focus on what AI fabricates most: numbers, named sources, dates, and legal claims. If you cannot verify a critical claim, ask an expert.
Q: Do I really have to tell people I used AI? It feels awkward.
It depends on how much AI shaped the work. Light help with phrasing rarely needs disclosure; analysis behind a decision, or work a client pays for, often does. When unsure, lean toward honesty - a brief note protects your credibility better than discovery.
Q: Isn't all this checking slower than just doing the work myself?
For trivial tasks, occasionally yes - a signal those tasks may not need AI at all. For most real work, AI plus a one-minute check is still far faster than a blank page, and far safer than sending unchecked output.

Key Takeaways

  1. Classify before you paste - treat the chat box like a postcard, and never share what privacy law protects.
  2. Confidence is not accuracy - AI states wrong answers as calmly as right ones, so supply the doubt, especially for numbers, sources, and legal claims.
  3. Build verification into the prompt - ask for the counter-argument and an uncertainty flag up front.
  4. Check in proportion to the stakes - a glance for a casual note, the full review for anything a regulator or board sees.
  5. Policy and accountability beat your opinion - your employer's rules win, and your name on the output means you own it.
  6. Write your one-page policy and keep it visible - pre-made decisions become reliable habits.

Next Steps: Continue with AI Tools