Artificial intelligence (AI) has both good and bad implications. The importance of understanding what that means is higher in this case than in other technologies.
This article’s purpose is to describe some common consequences. Associated with the integration of AI and to ensure executives that the pitfalls can be tackled. Protecting the integrity of your firm is of utmost importance and innovation can’t be compromised either.
AI clearly generates strong market and consumer benefits and business value. It also has proven to provide unsuspecting consequences. Some of the most obvious and tangible consequences include privacy violations, political effects, and discrimination. Possibly the most uncomfortable consequences AI potentially produces are those that are unknown. What if AI caused a loss of human life, or medical capabilities were affected? What if the security of the US was at risk because of military implications? Public trust has yet to be established by the majority because of these possibilities.
Financial performance can be affected. For example, trading code could make a mistake in an attempt to adapt to a new variable. Pricing decisions could be gauged wrong as to not match competitive pricing. Legal and compliance could be affected and accidental discrimination could occur while offering a lending product in marketing efforts. Consumer protection disclaimers and rights could be delivered wrong.
Executives have key considerations at hand regarding risk mitigation. As a leader, you hope to eliminate unintended errors if leveraging AI. Building pattern seeking technologies is a must. Looking for and controlling risks requires a higher scale of resources than normal efforts. This requires the leadership team, and cross departmentally. Your security team, IT, analytics and data, and marketing should all be involved in AI efforts.
These examples are meant to be helpful, in that you can get a healthy gauge on what to expect when leveraging AI. We find that AI is no more or less unsafe than any other technological advance in your business, though the steps needed to overcome and mitigate may require slightly more resources.
Best practices require that your firm have a well-established effort across the entire firm to identify and eliminate risks and consequences. With power comes great responsibility. Organizations can decrease the risks of applying artificial intelligence and advanced analytics by embracing these principles.