VanopdurpP-BUSN600-Part3Final.docx

1 Analysis of AI Implications in Canva's Business Operations Peter Vanopdurp American Public University COURSE: BUSN600: Artificial Intelligence (AI) Practices in Business Dr. Linda Ashar June 23 th , 2024

2 Analysis of AI Implications in Canva's Business Operations Canva is an online graphic design tool that leverages various AI tools to assist users in creating presentations, logos, social media posts, and more efficiently. The simplicity and high quality output of Canvas products have made the platform a staple for all types of clients, from individual users to large companies like Starbucks, PayPal, and SnapChat (Kitschke, 2023). With Canva's ability to create stunning professional designs in a matter of minutes, it's no wonder the business has become a favorite in the design industry. The reliance of AI on Canva’s business model makes the company a perfect study of the implications of AI in business. In this paper I will analyze issues concerning Canva’s use of AI, similarities of these issues within business as a whole, and some possible solutions for Canva in relation to these issues. Major Issues for Canva’s Use of AI Quality and Originality of Content. Canva uses many generative AI tools such as DALL- E, Magic Media, and Imagen to create content by analyzing existing online content. As a result of using existing content, this approach may result in creating content that lacks originality and raises concerns about potential copyright infringement issues. The platform’s reliance on these different AI tools and their reliance on pre-existing design elements can result in content that is too similar to what is already available, hindering users from creating unique brand identities. Data Privacy and Security . Canva collects user information and design content through cookies on the user's system, making its user data a target for cyberattacks. The 2019 data breach exposing the data of approximately 137 million users highlights the need for increased data security protocols to protect user data (Twingate Team, 2024). This isn’t the only issue of data privacy facing the platform; since Canva’s AI tools are developed by other companies, an

3 additional layer of needed security measures are required for safeguarding user data from unethical use. Bias and Ethical Concerns . The generative AI that Canva uses has the potential to inadvertently perpetuate biased content, and the risk of generating biased content increases daily. Additionally, there are ethical concerns regarding plagiarism and the potential misuse of AI generated content, which could harm Canva’s reputation and user trust. If Canva’s users rely on the AI without verifying its products, inaccuracy or plagiarism could occur, exposing the user to any associated consequences (Tiwari, 2023). Comparison of AI Use in a Business Quality and originality concerns are prevalent across all businesses utilizing AI, emphasizing the challenges of successfully integrating AI into business operations. Creative industries like graphic design and advertising might face challenges related to content originality, where the originality of their contents is critical to their success. The integration of AI in these businesses can either enhance the creativity of their employees by streamlining workflow and providing innovative solutions, or it can compromise it by creating repetitive, uninspiring content. While data privacy and security are relevant concerns for businesses collecting and storing user data, like Canva, the concern is not just about protecting user data from outside threats, but also from internal misuse. Under the Fair Trade Commission (FTC) model-as-a- service companies are especially at risk; these are companies that develop and sell products, such as large language models for use in chatbots, or image generating AI programs. Under the FTC, even though these model-as-a-service companies are not using the developed AI programs, they are still legally responsible for how the AI collects and uses collected data. If the AI takes user

4 data and sells it to marketing companies without the explicit consent of the user (those individuals using the program, not the company), the model-as-a-service companies can be held liable (Staff in the Office of Technology, 2024). Bias and ethical concerns are significant issues for all businesses. For instance, AI systems can inadvertently perpetuate existing biases found in their training data, leading to discriminatory outcomes in applications ranging from hiring processes to loan approvals and advertisements. In the healthcare industry, biased AI could result in the unfair treatment of patients. When it comes to creative businesses like Canva, biased AI can result in stereotyped, culturally insensitive content, potentially alienating audiences and damaging a brand's reputation. Potential for Corruption in Business Applications The issues mentioned above could corrupt business applications if not adequately addressed. Biases in AI outputs can undermine user trust and lead to discriminatory practices that harm not only the business but also the user. Bias in creative companies like Canva can alienate audiences, damage brand reputations, and create public backlash. Security breaches have the potential to cause significant financial and reputational damage, reducing user trust. Regarding ethics, AI tools that generate content with no oversight may produce offensive, harmful, or inappropriate content. Causing loss of user trust as well as brand damage. It is essential to establish effective mechanisms to identify and resolve these issues to uphold the integrity and trustworthiness of AI applications in business. Business Proposal for AI Applications at Canva The following are some business proposals for Canva to not only resolve the potential issues we have discussed, but enhance user satisfaction allowing Canva expand within the creative industry.

5 Personalized Design. Implementing predictive analytics for personalized design suggestions can significantly enhance Canva’s user experience by tailoring recommendations to individual preferences. Predictive analytics can analyze user behaviors and design preferences to simplify the design process and offer templates that closely match individual user requirements closely. This personalized approach not only improves user satisfaction but also boosts conversion rates by encouraging users to stay with Canva instead of seeking alternative platforms (Engati Team, 2023). Predictive analytics use advanced algorithms to create user profiles based on their interactions with the platform. If a user frequently uses vibrant colors and modern fonts, the AI can predict and suggest templates incorporating these elements, saving time and enhancing efficiency. This approach mirrors how Netflix uses predictive analytics to recommend shows and movies based on viewing histories, which has significantly improved user engagement and retention (Engati Team, 2023). AI Generated Mechandise. Expanding AI tools to include automated brand merchandise creation using natural language processing (NLP) and image recognition would transform Canva into a comprehensive one stop shop for brand creation. This enhancement will allow users to design and visualize branded merchandise, such as T-shirts, mugs, and bags, directly on the platform. By ensuring consistency and professional appearance across all marketing materials, this approach can provide a seamless user experience. Current competitors in AI merchandising, like Covver, require pre-existing logo designs in order to start the process of taking that logo and augmenting it for different merchandising options (Swag Solution, n.d.). Canva’s fully integrated solution would save users time and money by eliminating the need to switch between platforms for different tasks. Users will be able

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help