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There's a third kind, which is when unscrupulous business managers or politicians use it to make decisions that they would not be capable of auditing for a rationale when otherwise required to know why such a decision was made.

It's more of an ethics and compliance issue with the cost of BS and plausible deniability going to zero. As usual, it's what humans do with technology that has good or bad consequences. The tech itself is fairly close to neutral as long as training data wasn't chosen specifically to contain illegal substance or by way of copyright infringement (which isn't even the tech, it's the product).