| | JULY 2021 8OPINIONIN MYHOW AI CAN REVAMP A BUSINESSBy Matt Kuperholz, Partner and Chief Data Scientist, PwC"business processes and vendor-supplied solutions"`With great power comes great responsibility'.First stated over 200 years ago and restated famously by Winston Churchill and more recently Ben Parker (Spiderman's Uncle), this quote is relevant when considering Artificial Intelligence (AI).I have been using AI to solve my clients' problems for over twenty years. I've seen the evidence of how it frequently and increasingly empowers businesses in all industries. But what about the increased responsibility that comes with this increased power?When businesses use AI to improve productivity, reduce risk and operating costs, and when promoting rapid innovation, do they adequately consider the risks associated with AI implementation?Risk mitigation requires AI is developed, deployed, governed, operated, and maintained in a responsible fashion. This article discusses what we mean when we talk about Responsible AI. AI is changing the world at exponential rates. Enabled by the same exponential trends in data collection and computing power, AI is the technology on every business's radar. AI applications are already pervasive as we move towards increasingly AI-enabled businesses.I am extremely optimistic about the net positive value to society that AI will provide. However, a new level of attention will be needed for the development and deployment of AI-powered solutions. Their pervasive successes makes them a potential point of failure. We surveyed executives and found 85 percent believe their companies are taking sufficient measures to protect against AI's risks. However, when our research probed deeper, the findings suggest an underappreciation of the true challenges and level of effort needed to responsibly capitalize on AI. When it comes to implementing controls around AI, there's still a long way to go.AI introduces novel risks--not only technology risks in relation to its performance or security and control; but also non-technical risks including misalignment with organizational ethical principles, as well as social and economic risks (reputation, liability profiles, and job displacement).Our research found only one-third of respondents have fully engaged with risks related to data, AI models, outputs, and reporting. In the face of growing public concern over issues such as bias in algorithms, this is cause for concern. AI is not just increasingly prevalent, it's often invisible. It can be hidden in everyday business processes and vendor-supplied solutions. Businesses are developing machine-based decision-making and learning systems virtually unencumbered by AI-specific laws, legislation or regulation--particularly in the APAC region. Rigorous AI risk management is increasingly critical.The key role of the Chief information officer (CIO) is to set and lead an organization's information technology (IT) strategy, to ensure the enterprise-level IT roadmap and infrastructure and resources are in alignment. They must provide an executive-level interface Matt Kuperholz
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