Artificial intelligence (AI) offers businesses a range of efficient ways of working, but it’s not entirely risk free.
When used correctly and responsibly, AI can boost your business growth by improving communication, data management, analytics, and customer service. But like with any new technology, you must understand the risks and also consider whether your customers are receptive to the technology.
Here, we explore the range of ethical and moral questions AI poses. We provide tips on how to use AI tools and apps safely and responsibly to protect your business. Whether you need to adhere to GDPR regulations or avoid unfair algorithm-based models, we’ll help you navigate this new world.
Let’s start with some of the concerns.
Google consistently fights back against misinformation, but it still pollutes social media and has a powerful impact on people, especially when incorrect information is repeatedly put in front of our eyes.
The Central Statistics Office finds that six in 10 people see content online that is doubtful or untrue. This shows most of the information on the internet is incorrect, which is concerning since most AI tools get their information from the internet. Machine learning, which enables AI to develop understanding, can skew the information it returns if it learns misinformation at the source.
On top of that, the owners of TikTok, X, and Meta can tweak their algorithms to suit any point of view or bias. In short, they can easily choose which posts and articles to boost and which to hide. This creates a breeding ground for the spread of misinformation, especially when facts go unchecked.
AI handles a lot of data, and it’s still a relatively new technology. While AI doesn’t hold the data itself, it’s the tech firms and AI app developers who store our data.
The 2024 Cyber Security Breaches Survey reveals that over 50% of UK businesses experienced a cyber security breach or attack last year, highlighting how serious the issue of cybercrime has become.
Real-world incidents involving AI have already occurred. In May 2023, Samsung employees leaked internal code and documents by asking ChatGPT to review them. In February 2023, Google’s chatbot Bard wiped $100 billion off Alphabet's company value after quoting incorrect information about the James Webb Telescope. These are just two examples that highlight the risks of getting it wrong.
Replacing humans with machines might sound like science fiction, but it’s a common concern among the public. Research by Gartner shows that 64% of customers prefer companies not to use AI for customer service. That’s a significant portion of your customer base. Job displacement and the path to economic inequality it creates concerns many individuals, but it’s not only that. It can influence people through more precise ad targeting, amplify biases and reduce transparency.
Aside from these general concerns, businesses face real-life issues when they use AI irresponsibly. Let’s break a few down:
Privacy violations – AI handles a lot of personal data, and if businesses don’t handle that data properly, they can quickly violate GDPR. This can result in significant fines and reputational damage.
Lack of transparency – If a business relies on AI but cannot explain its rationale, it can quickly lose customer trust. This also makes it harder to spot errors or biases in the system, and suffer a loss of control as a result.
Security risks – Like any online technology, AI is vulnerable to security breaches and hackers. This creates a risk of fraud or data theft when using it, which may significantly interrupt business operations.
Job displacement – If businesses use AI and dismiss employees who perform certain tasks, they could face operational issues when the technology fails along with poor employee morale and a potential public backlash.
Misinterpreted data – Since AI can misinterpret information or amplify biases, businesses risk making bad decisions if they don’t conduct the necessary due diligence, which can harm the business.
Now you know the risks, how can your business safely integrate and use AI to maximise the benefits?
Here are five tips:
When training AI models for your business, ensure the data is free from historical biases and is diverse and representative. Regularly audit any datasets you use, especially those related to gender, age, race, or sexuality. Test the data and AI outcomes before implementation - for example, do different demographic groups receive different results?
It’s also important to establish your business’s ethical framework for using AI. These guidelines should outline how you intend to use AI fairly, transparently, and ethically.
Always comply with GDPR, just as you would with any technology. Use your customers’ personal data only for the intended purposes and ensure you have their consent. Maintain transparency with your customers and offer them the option to opt in or out to preserve trust.
Protect data further by using strong encryption and secure storage practices. But don’t stop there - threats evolve quickly, so regularly review and update your security processes.
It’s your business - you’re the boss. So implement AI systems that compliment your decision-making rather than replacing it. This is especially important for big decisions that impact you and your employees.
Regularly monitor and review AI performance in your business. Watch for unexpected changes or behaviours, and detect issues in real-time. This task can be a big one, so you may need to hire new employees to implement and maintain the safe use of AI, especially in the early days.
AI is a powerful tool that requires investment, particularly in education. This isn’t just for the data scientists and engineers in your team - anyone who interacts with AI systems should receive regular training to understand both the benefits and risks.
Update your AI models regularly to ensure they adapt to new regulations and data. AI is a fast-paced, ever-changing field, and new standards and regulations emerge frequently. Engage with AI research and regulatory developments to remain informed.
AI can impact the environment in several ways. It relies on rare elements and minerals that people often mine unsustainably, and requires large amounts of electricity to operate, both of which harm the environment. To protect your business’s reputation, assess the environmental footprint of your AI operations.
Choose cloud providers that use renewable energy sources. Avoid over-engineering models that demand excessive power for relatively small improvements. Instead, optimise AI algorithms to be more energy-efficient, using techniques like model compression to reduce their resource consumption.
By implementing these tips and taking it one step at a time, you can enjoy the benefits of AI while mitigating the risks associated with it.
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Kyle is a finance editor specialising in all things related to small and medium enterprises (SMEs). He has over ten years' experience working in financial services and as a writer.