Building ethical AI: Key challenges for businesses

Driven by key performance indicators like clicks, conversions, and revenue, business leaders often prioritize rapid AI implementation. However, pursuing speed and efficiency can overshadow critical considerations related to ethical AI. Unlike humans, AI operates on data, and it often lacks the wealth of context humans can ingest and analyze. Most AI goes through a learning phase, where it absorbs patterns, but this phase cannot account for every scenario. As a result, we face the risk of “artificial stupidity”, which can have tangible business consequences.

Ignoring ethical AI challenges can trigger regulatory headaches (like the Goldman Sachs Apple Card scandal), erode brand value (as seen with IBM’s Weather Channel app), cause employee attrition, and spark social movements (reminiscent of the Cambridge Analytica scandal), all ultimately impacting profits and growth.

This reality forces businesses to grapple with the complex ethical decisions surrounding AI, a task that is far from simple. How do you strike a balance between developing AI that protects customers, upholds ethical standards, and mitigates social friction, and creating AI that delivers tangible value to shareholders? Is this an either/or proposition, or can these objectives coexist?

This article will delve into the critical ethical considerations businesses must address to navigate the AI landscape responsibly and sustainably.

 

Table of Contents

What does ethical AI mean?

Ethical AI can be defined as AI that incorporates ethical guidelines, including promoting individual rights, anti-discrimination, non-manipulation, bias reduction, and privacy into its core design (and ongoing maintenance).

In other words, ethical AI is AI that’s built and maintained (via policies, processes, and teams) to adhere to the human and brand values your company exudes. It’s important to separate the term “ethical AI” from AI built around laws and regulatory guidelines. The goal of ethical AI is to deliver value far beyond regulatory guidelines or laws. In fact, ethical AI is built around human values — not regulatory ones. So, it’s much denser, a little trickier to deliver, and filled with ambiguity that can be challenging to tackle.

As an example, leaked Facebook research revealed its AI’s harmful impact on teen mental health, highlighting a gap between legal compliance and ethical AI.

There are plenty of examples of unethical AI degrading company values and causing financial and social havoc. But what about the carrot? As Bart Willemsen — VP of research at Gartner — puts it: “Even where regulations do not yet exist, customers are actively choosing to engage with organizations that respect their privacy.”

Why ethical AI matters to your business?

Ethical AI isn’t just about doing the right thing; it’s a strategic move. Ethical AI is capable of:

  • Attracting top talent: Top talent is willing to bolt if they feel technology is being used in destructive ways. A recent BCG survey also suggested that one in six AI workers have quit their jobs to avoid developing potentially harmful products. In a world where companies are struggling to attract and retain tech talent, developing ethical AI can be a strong barrier against attrition.
  • Improving your bottom line: People want to interact, engage, and purchase from companies that are honest, trustworthy, and engage in ethical business practices. And these companies tend to outperform their competitors across financial metrics.
  • Reducing your risk vectors: Ethical AI reduces legal and social risk vectors that can cause harm to your brand and bottom line.

The many ethical dilemmas of AI

Nearly every industry on the planet is digging around in the AI toolbox, looking to revolutionize the way they do business. But, as companies chase their so-called “white whale” of AI business value, it’s important to take a step back. AI does pose ethical dilemmas. The sooner you grapple with these dilemmas, the sooner you can take full advantage of the chest of AI gold.

Let’s quickly look at a few of the most common ethical dilemmas surrounding AI. But it’s important to note that there are many more — some of which only exist in specific industries.

Racial bias

What happens when a bank lending AI model indiscriminately rejects people based on their race? Or, what if an HR AI system creates a stale and stereotypical work environment due to inherent bias? Even worse, what if an AI discriminately provides medical care based on race or ethnicity? These things have all happened.

Social bias

This AI ethics issue is actually relatively common. What if an AI takes your social media connections into account during a medical, lending, or application process? Suddenly, your AI is discriminating against people based on their social affluence.

The trolley problem

A classic ethical conundrum. The trolley problem questions whether the moral value of a decision is determined by its outcome. In the problem, a train is traveling towards 5 people who are tied up on a railroad track. You can turn the train towards a single human tied to a second track or keep the train on the same track. Or you can not take action and let the five people die. It’s a challenging question. So… how does AI solve that problem? Let’s take this to the real world. What choice should a self-driving car make if a pedestrian steps in front of your car? The answer isn’t simple. It requires science and engineering students to receive training in ethics to better grasp the social implications of the technologies they will very likely be developing.

Privacy

We’ve all seen this one in play. AI needs to use, consume, and store data with customer privacy top of mind.

Manipulation

AI impacts millions, if not billions, of lives. If AI can be manipulated, it has the very real potential to cause physical, political, and societal harm.

These dilemmas matter. And businesses must consider them as equals to bottom-line KPIs during the development process. But how does that work exactly?

How to measure outcomes associated with ethics

Let’s cut to the chase: how do you actually measure “ethics.” At the end of the day, businesses will use AI. If they don’t, they will get left behind and swallowed by their competitors. So, we need to figure out a way to measure the outcomes associated with ethics and pair those measures with the AI development process. For this post, we want to bullet point a list of processes to bake into the AI development cycle. These are ethic-centric processes that help develop more ethical AI solutions. However, there are several existing “frameworks” (such as United States Intelligence Community and The IEE  Global Initiative on Ethics of Autonomous and Intelligent Systems) you can use if you require more concrete, certification-centric guidelines.

When developing AI, you should consider implementing the following outcome-associated controls:

  • Use enterprise-wide definitions of values to guide AI creation.
  • Build feedback loops into the development and post-development lifecycle to help uncover ethical dilemmas and guide ethical decision-making.
  • Create data quality requirements that put users front and center — not just CCPA or GDPR.
  • Go on the offensive; build AI around ethics instead of waiting for ethical problems to present themselves.
  • Describe your “ethical nightmares” and create metrics to circumvent those worst outcomes.
  • Identify ongoing ethical risk vectors to continuously improve your AI.

Large-scale enterprises can afford to build teams around AI ethics. But, some mid-sized or small businesses can’t afford these large-scale investments. In these cases, it’s important to work with a team that understands these responsibilities. For larger companies who outsource some of their development processes, partnering with a development company that understands the intricacies associated with ethical AI development should be the first step in the ethical AI journey.

Building a more holistic, responsible, and ethical AI

AI is a profoundly powerful technology that unlocks trillions of dollars in value for companies in industries across the globe. But that power brings tangible threats to your business. As you scale your technology, you scale the threats to your business. AI can create significant ethical issues for your company. To prevent these issues, it’s important to be proactive during your AI development and post-development process.

At Sigma AI, we specialize in building turn-key and customized AI solutions for enterprises looking to generate significant value without creating ethical headaches. Our team is dedicated to bridging the gaps between ethics and profitability. Are you ready to build a world-class AI ecosystem that’s honest, trustworthy, and engaging?Contact us to learn more about our AI solutions. From healthcare to call centers, we’re ready to help you tackle your biggest problems — in the most ethical way possible.

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