Now that the novelty of artificial intelligence has worn off, people are focusing on its responsible use. Ethical algorithms have become a chief concern for many businesses and regulatory agencies. However, you may be unaware of its influence because it’s largely unexplored.
“Across all industries, ethical AI has quickly become the focus of attention.”
The Role of Ethical AI in Business
Ethical AI is unbiased, fair and transparent. Its output is easily explainable and traceable, meaning you can hold it accountable and verify its conclusions. Naturally, this ideal should be your goal when using an algorithm for business-related endeavors.
Across all industries, ethical AI has quickly become the focus of attention. The potential downsides of this technology have become evident as it has evolved, prompting many to take action. Most businesses have realized they must use their algorithms responsibly to ensure stable, sustainable growth.
Many companies have little faith they can ensure ethical AI use. According to a survey of developers and industry leaders, around 68% of respondents believe most won’t achieve it by 2030. Since this technology went mainstream so quickly, few standardized practices are in place to address the most common concerns.
“84% of business executives believe ethical AI should be their top concern.”
Common Ethical Concerns of AI Use
The ethical concerns surrounding AI become more pressing as it evolves. You’re probably already aware of the most common ones — accountability, bias, job security, privacy and transparency. Every aspect of an algorithm carries moral considerations, from training data to output.
Although the general awareness of these issues has increased, there’s still no standard way to resolve them. However, addressing them as soon as possible is crucial, considering AI usage will accelerate as the technology evolves. As its adoption rate increases, so will regulatory oversight and general scrutiny.
Still, most organizations have yet to prioritize responsible AI practices. Although 84% of business executives believe it should be their top concern, just 25% have taken action. For the most part, they don’t act because the consequences are likely years away. However, ethical algorithms will influence growth whether they adopt or ignore them.
“Around 98% of AI leaders said they’d prioritize ethical algorithms in 2022.”
How Ethical AI Will Impact Business Growth
Ethical AI will heavily influence every aspect of business growth, from resume reviewing to customer service. If you take the initiative and remain responsible, most impacts will be relatively positive.
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Sourcing and Hiring
One of the top ways ethical AI will influence future growth is through hiring. Minimizing bias and improving transparency during applicant sourcing and reviewing will provide a better chance of finding your ideal candidate. Your risk of facing legal action due to discriminatory practices will also be much lower.
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Decision-Making
The black box problem hides an algorithm’s reasoning, preventing scrutiny or validation. Heightened transparency and accountability would boost your decision accuracy, safeguard against regulatory action and improve business outcomes.
Already, most businesses have made plans to ensure responsible decision-making is clear. Around 98% of AI leaders said they’d prioritize ethical algorithms in 2022, with 52% focusing on output transparency. If you want to adopt responsible practices, now is the time.
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Customer Retention
Now that the novelty of AI has worn off, people are growing frustrated with unethical practices. Already, 47% of the global consumer population has had unpleasant experiences because of this technology. Most have complained of non-transparency, opaque data collection and apparent bias.
Since nearly half of all consumers prefer algorithms to act transparently, ethical AI could substantially influence future growth. In all likelihood, it would improve your retention rates. Since existing customers spend nearly 70% more than newcomers on average, you could achieve a stable, resilient revenue stream.
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Regulatory Compliance
Compliance has become a massive talking point as regulatory agencies and governments have become increasingly concerned about responsible use. You’ve probably seen reports from the White House discussing ethical AI in industries like health care and finance.
When it comes to business growth, ethical AI will heavily influence compliance-related operations. You face a much lower risk of fines or regulatory action if your model is transparent and you can easily trace its reasoning.
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Employee Retention
In the long term, industries heavily automated by AI will likely experience labor scarcity. Experts already project it will replace 44% of workers by 2035. As people realize their education and skills might become obsolete, they will seek careers elsewhere. As a result, you could see widespread shortages in your sector.
Using ethical AI practices to improve workers’ job security could make your sector resilient against labor scarcity. Attracting skilled employees while supplementing everyday duties with responsible algorithms could put you ahead of the competition.
The Importance of Ethical AI Use
Whether you rely on algorithms to perform everyday duties, connect with customers, manage systems or support workers, you would benefit tremendously from ethical AI. It will intensify regulations and shape consumer viewpoints whether or not you leverage it. Truthfully, it’s best to be proactive.
