AI in the Modern Business LandscapeAI in the Modern Business Landscape

Organizations implementing AI must balance innovation with ethics and foster transparency

Damien Duff, principal machine learning consultant, Daemon

October 4, 2024

5 Min Read
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Businesses today cannot escape the hype surrounding artificial intelligence (AI). Daemon’s research, “Is AI a craze or crucial: What are businesses really doing about AI?” found that 99% of organizations are looking to use AI and machine learning (ML) to seize new opportunities.

While these figures highlight a strong commitment to AI, they also underscore the pressure many businesses feel to adopt this technology, often driven by the fear of being left behind. Rather than hastily adopting the latest AI advancements and retrofitting them to your business’s needs, you as a leader must resist the urge to implement AI simply because it’s trending. Instead, you should ensure that AI is a fit for your organization’s unique needs - this is the most important first step in any AI project. AI may offer tremendous potential but it’s not a universal solution for every business problem.

As well as understanding whether AI will solve a need, it’s also important to ensure any AI that is implemented is done so responsibly. Our research also shows that 80% of organizations plan to dedicate 10% or more of their total AI budget to meeting regulatory requirements by the end of 2024 – an encouraging sign of the growing commitment to ethical AI.

In this article, we will explore if implementing AI is the right approach, how people are fostering transparency in AI systems and practical considerations to navigate ethical AI implementation.

Related:Take It Steady: Getting the Most out of Generative AI

To Adopt or Not to Adopt

Widespread adoption of AI often comes with a sense of urgency, fuelled by the fear of falling behind competitors. However, this can lead to decisions that may not align with a company’s core values or the needs of its stakeholders.

To avoid this, take a step back and ask yourself whether implementing AI is truly ethical, not just from a technological standpoint but from a broader organizational and societal perspective.

Just because AI has the potential to revolutionize operations does not mean it is the ethical or appropriate choice for every situation. The ethical approach requires you to carefully evaluate the potential benefits to business, as well as the implications of AI on employees, customers and the wider community.

To ensure AI is the best tool for the job, it should be deployed in ways that align with your company’s mission and contribute meaningfully to your business goals. Implementing AI without a clear, strategic purpose or without strong stakeholder approval can lead to wasted resources, employee displacement and even damage to the company’s reputation if the technology is perceived as being misused or applied inappropriately.

Related:More Than Words: How to Build Human Expertise into Generative AI Models

Fostering Transparency With AI Systems

If you decide to press ahead with AI implementation, fostering transparency within AI systems is essential for ensuring ethical use and reducing potential risks. Without clear visibility into how AI systems operate, trust can erode, leading to negative outcomes both for the organization and its stakeholders.

To achieve this, you must work with relevant stakeholders, to put robust data governance frameworks in place. These frameworks are the backbone of transparency, ensuring that data is handled responsibly at every stage of the AI lifecycle. This includes practices such as data minimization – only collecting the data that is absolutely necessary – anonymization to protect individual identities and consent management to ensure that data is used in ways that are fully agreed upon by those it concerns. By adhering to these principles, you can build trust with their users and demonstrate that their AI systems operate with integrity.

Transparency goes beyond just the technical aspects of data governance; it must also involve those who are directly impacted by AI systems. End users should have a voice in shaping transparency measures, as their perspectives and concerns are vital to ensuring that AI systems are designed and implemented in a way that serves their interests. This means giving users a clear understanding of what data is being collected, how it is being used and what the AI systems are doing with that data. 

Considerations for ethical AI implementation

Businesses bear a significant responsibility in shaping the ethical development of AI and it’s imperative that key elements are considered ahead of implementation. This includes:

  • Stringent data governance to ensure algorithms are fair and unbiased and that transparency is built into how AI systems make decisions that impact people's lives.

  • Input from key stakeholders. For AI to truly serve human interests, all applicable stakeholders must be involved from the outset. This includes the inception of strategy, ideation and design of AI-based solutions and products.

  • Fairness and bias mitigation should be addressed throughout the AI lifecycle. This involves identifying biases present in training data, algorithms and outcomes and then taking proactive measures to address them.

  • Conducting fairness impact assessments, which involves having a diverse team, consulting stakeholders, examining training data for biases and ensuring the model and system are designed and function fairly to mitigate biases.

  • Mitigating against job loss. As AI becomes ingrained in the everyday, businesses will need to reassess performance at work, ensure equitable access to resources and ensure a greater digital divide isn’t produced.

What Does the Future Hold?

The importance of businesses in contributing towards an ethical AI ecosystem cannot be overstated. Whether actively deploying AI within their operations or integrating AI-driven products and services, companies must prioritize ethical considerations to ensure that their actions align with both organizational values and take societal expectations into consideration.

Even for those not directly implementing AI, it's crucial to assess the broader impact of AI-driven products on their business, customers and community. Ethical AI isn’t just about what we create today but about the responsibility we hold in shaping a future that benefits everyone.

About the Author

Damien Duff

principal machine learning consultant, Daemon, Daemon

Damien Duff works as part of Daemon's machine learning and artificial intelligence practice to find ways to use technology to help people work better in the world. He has been working with Daemon for over five years and has a PhD in Artificial Intelligence, which he obtained from the University of Birmingham. Prior to his role at Daemon, he was a lecturer and researcher at Istanbul Technical University where he led a number of government funded research projects around AI.

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