By DTX Europe’sDavid Parker, Co-Founder and Director of Parker Neal
The concept of artificial intelligence (AI) and the different ways it can be implemented are developing quickly as more businesses incorporate AI into their products, services, and decision-making.
Initially used to evaluate loans, identify new recruits, and enhance chatbots, algorithms are now deeply ingrained in almost every business. Indeed, there have been great uses of AI in conjunction with open banking principles in recent years. However, the question is no longer whether an organisation should implement AI – but where it will provide the greatest competitive advantage.
The global market for AI is growing rapidly and is expected to reach $15.7 trillion by 2030. Those who are still involved in the experimentation and risk assessment of AI, run the risk of falling behind. Nevertheless, there are still many obstacles that AI must overcome, such as privacy and ethical boundaries, in order to succeed.
Ethical Implications of AI
Many organisations use AI responsibly through an effective data governance strategy. By connecting the people to the technology, businesses create the standards, processes, and documentation for how they will collect and manage data, altogether ensuring data is used ethically.
Moreover, the use of AI has significant ethical repercussions and these might not be completely clear until AI is in place, as the learnings only come into play once up and running. With the use of certain AI regarded as negative by the media – with a number of court cases and governmental ethics being challenged – having a strong digital moral code is essential.
Determining and reducing ethical concerns is a necessity both during the design and development phase, as well as after it’s deployed. Businesses should therefore have accountability when using a customer’s data.
A recent study has shown that there are more growing concerns over the use of AI in business with almost 60% of organisations having attracted legal scrutiny and 22% having faced a customer backlash because of decisions made by their AI systems. Using another person’s data without their permission crosses ethical boundaries and highlights the growing need for data to be viewed as intellectual property. These ethics have not only got to be visually present, but they also have to be embedded within an organisation.
Gaining a Competitive Advantage
There’s a preconception among business owners that having strong digital ethics damages business profitability. However, true long term competitive advantage from AI can only come when strong digital ethics are at the heart of the strategy.
Through using an individual’s data ethically and responsibly, customers view your businesses as trustworthy and are more likely to return for future purchases increasing brand loyalty. Overall, good quality data governance around data is a basis for business growth and profitability.
The use of AI shouldn’t be viewed in a negative manner. Instead, there are significant implications for its use for businesses which can increase efficiency and productivity. Whilst every business collects data, it’s the businesses which have AI which are able to utilise this data effectively. By analysing data, businesses are able to collect valuable information, such as market trends and predictions, which allows them to make better informed, quicker, decisions.
Within the current economic climate and inflation rising, businesses who are utilising AI will be able to manage and respond better to economic pressures. With this technology in place, companies are able to quickly adapt and respond to changes, being more prepared to manage unforeseen supply chain pressures or getting products to market quickly.
The Future of AI
The use of AI has great potential for any organisation in the modern day. From finance to healthcare, businesses are waking up to the potential and possibilities of AI, especially around analytics. It is expected to drive major innovation and even tackle some of the big challenges facing the planet today – namely how we move forward as a society in a more sustainable, environmentally-friendly way.
With the market for AI growing exponentially in recent years and it not expecting to slow down anytime soon, businesses should begin to look at implementing this technology to improve business output and efficiency.
While some businesses will continue to misuse AI, the majority are expected to look at an ethics-first digital strategy to maintain trust with those impacted by AI-enabled changes and take everyone on the journey in a positive way. If that happens, there is no limit to the potential for AI which promises a bright, innovative future for all who engage with it.
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