AI Governance: The Key to Unlocking the Full Potential of Artificial Intelligence

Introduction

AI is transforming the way businesses operate, innovate, and compete. But with great opportunities come great challenges.

There was a lot of excitement when OpenAI released ChatGPT on November 30th 2022. However, businesses quickly began to create policies on how to use AI for work, or not use it at all, due to concerns about information and data leakage, as well as lost intellectual property and sensitive customer information. Some companies even went so far as to shut down or block AI websites altogether.

I’ll review the latest research about how can you ensure that your AI systems are ethical, reliable, and secure? How can you avoid the pitfalls of bias, privacy breaches, and cyber fraud? How can you align your AI strategy with your business goals and values?

In this article, I will share some insights and resources I have found in my research and in my? experience working with customers, and other experts on how to manage AI risks and governance in your business.

I’ll cover the following topics:

• Where to start when governing AI
• What AI risks to manage
• How to design ethically responsible and culturally considerate data systems
• How Microsoft implements its own Responsible AI Standard

Where to start when governing AI

One of the first steps to govern AI in your business is to establish a clear policy for AI usage. This policy should define the scope, purpose, and principles of your AI initiatives, as well as the roles and responsibilities of your AI stakeholders. It should also include the dos and don'ts for your employees and the business when using AI.

A good resource to help you write a policy for AI is the AI Usage Policy Checklist from Kordia , a leading provider of digital solutions in New Zealand and Australia. This checklist covers the key elements of an AI policy, such as data quality, accountability, transparency, fairness, privacy, security, and inclusiveness. You can download the checklist for free by providing your email address and agreeing to receive marketing emails from Kordia.

What are the AI risks to manage

AI can bring many benefits to your business, but it can also pose many risks. Some of the common AI risks that you need to manage as described by Gartner are below, and would be good first cut to have on your company risk register:

1.????? Fabricated and inaccurate answers: AI systems may generate false or misleading information that can harm your reputation, credibility, and trust.

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2.????? Data privacy and confidentiality: AI systems may collect, store, or share sensitive or personal data without proper consent, protection, or compliance.

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3.????? Model and output bias: AI systems may produce unfair or discriminatory outcomes that can affect your customers, employees, or society.

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4.????? Intellectual property and copyright risks: AI systems may infringe or violate the rights of others when using or creating content, data, or algorithms.

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5.????? Cyber fraud risks: AI systems may be exploited or manipulated by malicious actors to commit fraud, theft, or sabotage.

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6.????? Consumer protection risks: AI systems may cause harm or dissatisfaction to your customers by providing poor quality, unsafe, or unethical products or services.

To help you identify and evaluate these risks, you can refer to the Gartner report on Six ChatGPT Risks Legal and Compliance Must Evaluate. This report provides a comprehensive overview of the legal and compliance implications of using AI systems, especially chatbots, in your business. Y

How to design ethically responsible and culturally considerate data systems

Another key aspect of governing AI in your business is to ensure that your data systems are ethically responsible and culturally considerate. This means that your data systems should respect the values, preferences, and expectations of your users, customers, and stakeholders, as well as the norms and practices of the communities and societies where you operate.

A useful tool to help you design ethically responsible and culturally considerate data systems is the AI Ethics Cards from IDEO , a global design and innovation company.

These cards are a set of collaborative activities for designers, developers, and researchers to explore the ethical implications of their AI projects. The cards cover four themes: data collection, data analysis, data use, and data impact. You can download the cards for free by providing your name and email address.

How Microsoft implements its own Responsible AI Standard

If you are looking for an example of how a leading technology company governs AI in its own business, you can learn from Microsoft's Responsible AI Standard .

This is a set of internal guidelines and requirements that Microsoft follows to ensure that its AI systems align with its six Responsible AI goals: accountability, transparency, fairness, reliability and safety, privacy and security, and inclusiveness.

微软 has released its Responsible AI Standard to the public to share its learnings, invite feedback, and contribute to the discussion about building better norms and practices around AI.

The standard is broken down into goals which are then translated into tools and practices.

If you are looking for an AI Management Framework then this is a pretty good start.

How does Biden's AI Executive Order Help?

President Biden issues and executive order on artifical intelligence (AI) in October 2023. The order establishes new standards for AI stafey and security.

The order directs the following actions:

1. Require that developers of the most powerful AI systems share their safety test results and other critical information with the U.S. government.
2. Develop standards, tools, and tests to help ensure that AI systems are safe, secure, and trustworthy.
3. Protect against the risks of using AI to engineer dangerous biological materials by developing strong new standards for biological synthesis screening.
4. Ensure that AI is developed in a manner that is consistent with American values and interests.

How to apply this information to your business

AI systems are transforming the world in amazing ways, creating new possibilities and opportunities for society. But how can we make sure that AI is aligned with our values, ethical principles, and legal frameworks? How can we foster trust, transparency, and accountability in AI? How can we mitigate the risks and maximize the benefits of AI for everyone?

The good news is there is a growing number of places organisations can look for how.

If you are a business leader, developer, or user of AI, you may be wondering how you can implement the Responsible AI Standard in your own organisation. Here are some steps you can take to get started:

• Review the AI risks and the Microsoft standard and familiarise yourself with its goals, tools, and practices. You can find the standard on Microsoft's website, along with other resources and examples of how Microsoft applies it internally and externally.
• Assess your current AI projects and identify any gaps or risks that may need to be addressed. Use the tools and practices suggested by the standard as a reference, and consider the context and impact of your AI systems on different stakeholders and scenarios.
• Adopt or adapt the standard to suit your specific needs and objectives. You may want to customise the standard to reflect your own values, priorities, and challenges. You may also want to align the standard with other relevant frameworks and standards that you follow, such as industry-specific guidelines or regulations.
• Integrate the standard into your AI lifecycle, from design to deployment to monitoring. Make sure that you have clear processes and roles for ensuring the responsible development and use of AI throughout your organization. Train and educate your staff on the principles and practices of the standard, and create a culture of accountability and collaboration.
• Communicate and engage with your stakeholders, including your customers, partners, regulators, and the public. Explain how and why you use AI, and how you ensure its ethical and trustworthy behavior. Seek feedback and input from diverse perspectives, and be open to learning and improving your AI systems over time.

"Write a short story about a company that develops an AI system that is designed to be transparent, explainable, and accountable. The story should describe how the company ensures that the AI system is developed and deployed in a responsible manner, and how it manages the risks associated with the system"

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