Free vs paid AI tools – What are the benefits and the risks?
When something’s free, who’s really paying?
We all love free things, but what does it mean when these ‘free’ services come with a catch? Many AI tools these days draw people in with their free offerings, but are they truly free, or are they getting their value elsewhere?
Below is a quick summary of when it might be worth questioning whether a free AI tool is appropriate for your organisation.
Understanding Free AI Tools
It is worth being aware of the difference between free and paid versions of AI software. If a piece of software is free, it is likely that the AI vendors are getting value out of you – or your organisation – in other ways. This can potentially be by utilising your data in ways that you and your clients may not be comfortable. The following table is a basic overview of the common differences that may exist between free and paid tiers of software.
Note: All AI software will have different terms and conditions, so please check with each piece of software you’re using for specifics.
|
Tier |
Data Practices |
Recommended For |
|
Free Tiers
|
Data may be used for training. Consumer terms only, no business agreements. |
Personal experimentation only and general information requests. Public information only. NOT for any client info or strategic documents. |
|
Paid Individual (~$30/month) |
Often opt-out of training by default. Better privacy controls but still consumer terms. |
Individual productivity, public communications. NOT for client personal info or company data. |
|
Business/Team (~$40+/user/month) |
No training on your data. Business data processing agreements. Often compliant with privacy laws. Admin controls. |
Most organisational use cases. Operational data. |
Budget tip for not-for-profits: Team subscriptions with NFP discounts may cost less than multiple individual subscriptions for 3+ users. Check Connecting Up Australia.
Nonprofits from across Asia may seek assistance from TechSoup or its regional partners for support.
Recommendations for using Free AI Tools
NEVER put any of the following information into these tools.
- Names, contact details, or personal information about clients/service users
- Health information, mental health notes, or crisis support detail
- Information about children or vulnerable people
- Financial information about projects or individuals
- Confidential strategic plans or other sensitive documents
What is generally safe to work with
- Public information from your website or annual report
- De-identified statistics or sector research
- Drafting communications based on public information
- General research or brainstorming
Interested in setting up AI for your organisation?
We have just released our Not-for-profit guide to AI procurement, where we detail the four pathways to AI procurement, each with increasing opportunity, complexity and risk.
Read this article and discover your own pathway here.
Need a helping hand down the path? You can also reach out to our AI experts today to set up a consultation, and we can help you through your AI procurement needs! Find out more and book a consult here.
Find out more and book a consult here.