A recent YouGov poll revealed that a significant portion of Americans harbor concerns about Artificial Intelligence (AI), with many supporting a temporary pause on its development. The apprehensions range from potential job loss to the end of the human race on Earth.
At the same time, many investors are excited about the technology’s vast promise, such as increased efficiency, productivity, and innovation –– and as a result, are pouring dollars into businesses that embrace generative AI.
So –– in the absence of any universal standard for “responsible AI” –– how can today’s business leaders balance Society’s concerns with the Capital Markets’ enthusiasm? Here are a few steps that business leaders can take to begin to establish a trusted and transparent AI strategy of their own:
- Evaluate AI’s potential impact –– without emotion: Dispassionately analyze the risks and opportunities associated with AI development and use, outside of today’s hype cycle (both on the upside and downside).
- Engage with stakeholders: Establish open channels of communication with key stakeholders, including customers, employees, investors, and communities –– and most importantly: Listen. Only by understanding their concerns and expectations regarding AI can you work to ensure your own AI strategy mitigates against them.
- Establish responsible AI practices (but don’t reinvent the wheel): First, consider the range of responsible AI practices and policies that have already been articulated. Then, informed by your stakeholders’ concerns, you can begin to create and implement your own ethical guidelines for AI development and use.
- Set quantitative goals for AI products: Establish clear and defined targets for your company’s AI applications that support your broader business objectives. These targets should be specific, measurable, and achievable within a specified timeframe while staying aligned with your larger financial goals.
- Integrate AI in financial reporting: To hold yourself to those targets, incorporate AI-related metrics in your public disclosures, such as AI system efficiency, social impacts on employees and communities, and governance factors like data privacy, accountability, transparency, and risk management. In this way, many companies can borrow from the same playbook they’ve used for ESG tracking and reporting.
- Ensure continuous transparency: Utilize various communication channels to provide clear explanations of how your AI systems work and their impact. Enable both internal and external stakeholders to understand the rationale behind AI-driven decisions and their consequences.
The path to an AI-driven future lies in striking a delicate balance between Society’s concerns and the Capital Market’s enthusiasm. In the absence of consistent regulations to define responsible AI practices, business leaders can take proactive steps to address public concerns (whether perceived or real) and maximize social benefits.
While it’s premature to prescribe an approach that would, in the words of Goldilocks, get it “just right”🥣, companies can help cut through the hype –– and as a result, begin to write a more balanced next chapter in the human-AI narrative.