Avoiding Risk Isn't Enough

As Peter Parker might put it, with great AI power comes—yes—great AI responsibility. Companies are well aware. Past AI failures, which have led to biased hiring, unfair lending practices, and incorrect medical diagnoses, have pressured business leaders to find ways to ensure that they use the increasingly potent technology appropriately.??

So far, most of the discussion on the topic of responsible AI (RAI) has revolved around risk mitigation. A new study by BCG and the MIT Sloan Management Review, however, shows that the organizations leading in this area take a different approach. They treat RAI as an enabler that can bring tangible benefits to the business, support broader long-term goals such as corporate social responsibility, and help derive even more value from AI investments.?

RISKY BUSINESS??

It’s easy to see why risk mitigation has been the raison d’être of RAI. The thinking: a technology like AI—with so much potential influence on operations, customer interactions, and product functionality—requires special precautions.??

And there’s plenty to mitigate. Nearly one-quarter of the 1,000 executives surveyed for the new report cited AI failures that range from technical glitches to bias in decision making and actions that raise privacy or safety concerns. Given that just 16% of companies have fully mature RAI programs, according to the survey, some may not even know whether they’ve had an AI failure. In other words, the actual number of such incidents is likely even higher.??

But RAI leaders have demonstrated that they can reduce risk and gain other important benefits by approaching RAI in a more strategic way.?

These leaders share certain characteristics. They prioritize RAI, include a wide array of stakeholders (within and outside the organization) in its implementation, and make a firm material and philosophical commitment to it.??

Moreover, RAI is itself a source of business value for these organizations:??

Overall, leaders are two times as likely as nonleaders to realize business benefits from their responsible AI efforts.?

GETTING AI PRIORITIES RIGHT?

Our research suggests that timing—specifically, the sequence in which companies increase their RAI and AI maturity—counts, too. For many companies, AI maturity comes first: 42% of respondents say that AI is a top strategic priority, but among this group, only 19% say that their organization has a fully implemented responsible AI program. This, it turns out, is the wrong order.?

As AI maturity grows, a company will deploy more AI applications, and those applications will be more complex, increasing the risk that something may go wrong. Companies that prioritize scaling their RAI program over scaling their AI capabilities experience nearly 30% fewer AI failures. And the failures that happen tend to crop up sooner and have significantly less impact on the business and the stakeholders it serves. Focusing first on responsible AI enables companies to create and make use of a powerful synergy between AI and RAI.?

The alignment between RAI and CSR is also important. Most leading RAI companies (73%) view the effort as part of their broader CSR work, compared with 35% of nonleaders. And the survey found that as their responsible AI maturity increases, organizations become more interested in aligning their AI with their values. Once again, responsible AI is not just about reducing risk. It’s also about creating value, for company and community alike.?

As the power of AI increases and companies’ investments in it grow, it’s important to balance those commitments with RAI. Otherwise, there’s risk on the horizon and value left on the table. By embracing a strategic approach, companies can more easily and less perilously scale their AI efforts—realizing important benefits for their business and the world around it.?

For Further Reading:?

Responsible AI Is About More than Avoiding Risk ?

Four Lessons for Aspiring Responsible AI Leaders ?

Me, Myself, and AI: A Podcast on Artificial Intelligence in Business ?