Responsible AI and the Future of Digital Acceleration

Artificial intelligence (AI) is driving significant strides in digital acceleration and business operations. To maximize the benefits of AI, the focus must shift to responsible AI, that is, businesses must prioritize ethical considerations in their AI strategy.

New buzzwords often capture the attention of the corporate world, with many investors eager to get in on the action. A good example is the metaverse whose premature demise was expected. However, artificial intelligence (AI) is in a class by itself. AI is no longer just a buzzword; it is an essential technology rapidly transforming the business landscape and radically defining the future of modern business. What sets AI apart is that it is not merely an experimental technology surrounded by the mystique of an alternate reality. It has been around for some time, quietly powering digital transformation in the background. However, the transition from the bedrock of business operations to mass adoption has catapulted AI into a disruptive force revolutionizing business and society.???

Businesses seeking to enhance their operations and transition from digital transformation to digital acceleration rely on AI to achieve corporate objectives and competitive advantage. With AI, they have the potential to automate routine tasks, unlock valuable insights from data, and improve decision-making processes. AI enables businesses to reach a larger audience, improve customer experience, and establish long-term customer relationships. The possibilities for AI are endless, and its impact on business operations is only expected to expand as more organizations leverage the technology.?

Nascent technology such as AI can be threatened by the unknown, particularly vulnerabilities lurking in the dark corridors of AI development, deployment, and use. As such, it is expedient for businesses to understand the importance of using AI responsibly to propel growth and innovation.

The new business normal is not even the maturity of digital transformation adoption; it is the speed at which businesses can deliver products, services, and experience to market.

The Need for Responsible AI in Digital Acceleration?

Digital transformation played a significant role in sustaining business operations during the COVID-19 pandemic. Organizations slow to adopt digital transformation struggled to survive while some went out of business. The new business normal is not even the maturity of digital transformation adoption; it is the speed at which businesses can deliver products, services, and experience to market. According to a PwC report, nearly 80% of consumers listed speed as an indicator of positive customer experience. The shift from digital transformation to digital acceleration has enormous consequences for businesses. Understanding digital acceleration is as crucial as making the shift.

It is not uncommon to interchange or confuse digital transformation with digital acceleration. This is so because both concepts are part of a digital strategy spectrum available to organizations using technology to innovate business operations. Digital acceleration is the rapid adoption and integration of digital technologies to drive innovation, improve business operations, and gain a competitive advantage. It is a business strategy that guides how quickly organizations adopt and utilize technology to transform traditional business models, processes, and customer experiences. As a result, organizations become more agile and responsive in a rapidly evolving business landscape.?

The global AI market is predicted to reach nearly $2 trillion by 2030, a CAGR of 32.9% from 2022 to 2030. This projected growth relates to the mass adoption of digital strategies by many organizations. According to a recent report by Deloitte, 94% of business leaders believed AI is critical to achieving enterprise success over the next 5 years. Organizations with mature AI strategies considered AI implementation very profitable as 86% of high-outcome organizations tracked their return on AI investment.??

AI plays a critical role in digital acceleration. It enables businesses to maximize their digital strategy by providing them with capabilities to automate processes, analyze large data, and gain real-time insights. By leveraging AI technologies, organizations can streamline and optimize their operations, reduce costs and time, and improve their customer experiences. Conversely, AI has been used to cause harm, discriminate against certain groups and lead to wrong decisions. This can be attributed to the absence of ethical considerations during AI development and deployment. To address unintended adverse effects of AI, the consensus is shifting towards responsible AI (RAI).

The idea behind RAI is that organizations are adopting AI ethically and in a way that aligns with their culture, principles, and objectives.??

A study conducted by MIT Sloan Management Review and Boston Consulting Group defines responsible AI as “a framework with principles, policies, tools, and processes to ensure that AI systems are developed and operated in the service of good for individuals and society while still achieving transformative business impact”. According to the study, 84% of respondents believed that RAI should be a top business priority, while 73% considered it to be part of their social corporate responsibility. The idea behind RAI is that organizations are adopting AI ethically and in a way that aligns with their culture, principles, and objectives.????

Having an RAI strategy is a necessity that business leaders must prioritize. It promotes ethical development of AI models and transparent use of training data, thereby enabling organizations to advance their digital acceleration safely and responsibly. When organizations incorporate ethical AI practices, they avoid bias, reduce the potential for their business processes to cause harm, and promote brand trust and loyalty. RAI also provides much needed assurance to the public and customers that an organization is using AI technology in a way that does not harm society.?

Organizations that implement RAI strategies in their product development and service delivery are better positioned to maximize profit and maintain market lead.

Benefits of Responsible AI in Digital Acceleration

One of the reasons responsible AI is gaining momentum is because research shows organizations that adopt an RAI strategy unlock new opportunities and grow their revenue. According to a recent study by The Economist Intelligence Unit, more than 80% of respondents agreed that RAI is critical for broadening revenue-generating opportunities and building competitive advantage. Findings from The Art of AI Maturity report reveal that high-performing organizations with RAI strategies grew their revenue by 50%, while 53% of AI Achievers (organizations with mature AI strategies) implemented RAI by design. 41% of RAI leaders had returns on their investment compared with 14% of companies less invested in RAI.?

RAI enables innovation and efficiency in business operations. Organizations that implement RAI strategies in their product development and service delivery are better positioned to maximize profit and maintain market lead. Such organizations enhance customer experience and increase engagement. Data is not only instrumental to efficient digital acceleration; quality data and effective data management are crucial to decision making and implementation. RAI-powered predictive analytics can enable organizations to make more informed and data-driven decisions, by providing accurate and timely insights into business performance, customer preferences, and market trends.?

When AI models are designed without proper consideration for ethical, social, and legal implications or deployed without appropriate safeguards and oversight, they can undermine the benefits of digital acceleration and lead to a range of negative consequences.

Risks of Not Implementing Responsible AI in Digital Acceleration

It is concerning that 50% of global leaders reported a lack of executive commitment in efforts to manage AI-related risks. The risks of not implementing responsible AI can be consequential and pervasive. When AI models are designed without proper consideration for ethical, social, and legal implications or deployed without appropriate safeguards and oversight, they can undermine the benefits of digital acceleration and lead to a range of negative consequences. For example, biased algorithms can perpetuate discrimination and reinforce societal inequalities. Inadequately tested AI models can make erroneous decisions, leading to incorrect outcomes and potentially harmful actions. AI systems with weak security measures are vulnerable to cyberattacks, jeopardizing data privacy and overall digital infrastructure.?

Organizations face regulatory consequences when AI is designed irresponsibly. Italy initially banned OpenAI’s ChatGPT because of complaints about the use of personal data. The proposed EU AI Act will impose significant financial penalties on organizations whose AI tools or processes pose harm to society. Customers and the public are increasingly demanding that organizations implement RAI. Failure to ethically and responsibly develop and deploy AI technology can result in the loss of trust and revenue, reputational damage, and liability.

The lack of appropriate considerations in the development of AI technology raises concerns about national security. AI-powered weaponry can be used to destabilize countries, undermine political integrity and economic prosperity. Nation-state actors and organized cyber criminals are using AI to attack critical infrastructure, steal trade secrets and military intelligence. AI-enabled disinformation contributes to public breakdown and manipulation of democratic processes. In his recent testimony before the US Congress, Sam Altman, OpenAI CEO, called for “a combination of licensing or registration requirements for development and release of AI models above a crucial threshold of capabilities”.?

The lack of appropriate considerations in the development of AI technology raises concerns about national security.

Implementing a Responsible AI Strategy

With 86% of experts believing that responsible AI drives innovation and growth, implementing RAI is an urgent necessity, not just a matter of convenience. It requires taking active measures to ensure that the development, deployment, and use of AI models are in line with ethical and social values. This strategy starts with a thorough understanding of the potential risks and effects of AI technology. It highlights the significance of transparency, accountability, and fairness in AI algorithms while addressing concerns such as bias, privacy, and discrimination. Additionally, an RAI strategy promotes continuous monitoring and assessment of AI systems to detect and mitigate any unintended outcomes.

A key ingredient for successfully implementing an RAI strategy is fostering a culture that encourages the ethical adoption and use of AI throughout the organization. 82% of business leaders indicated that employees believe AI technologies will enhance their job performance and satisfaction. The commitment to building the right AI culture must be driven by top-level leadership to ensure that RAI is integrated into business operations. Such a culture not only displays an organization’s dedication to RAI but also provides an opportunity to collaborate with relevant stakeholders. Cooperation among a diverse group of stakeholders, including policymakers, researchers, industry experts, and the public, is crucial in establishing guidelines, standards, and regulations that govern the responsible use of AI.

The commitment to building the right AI culture must be driven by top-level leadership to ensure that RAI is integrated into business operations.

Towards a Responsible AI-enabled Digital Acceleration

Artificial intelligence has evolved beyond being just a buzzword to becoming an essential technology driving digital acceleration and rapidly transforming the business landscape. Its impact on businesses is already evident, enabling automation, data analysis, and improved decision-making processes. Business leaders who have not yet incorporated AI into their operations should begin developing plans to do so. AI represents the future of commerce, and companies that fail to adopt AI risk being left behind. However, when AI is not developed or deployed ethically, it presents significant risks to business operations and society. Therefore, business leaders must make the shift toward responsible AI to maximize the benefits AI-enabled digital acceleration.?

The responsible use of AI is essential to ensure its positive impact and avoid potential risks and negative consequences. RAI strategies are gaining momentum, with organizations realizing the importance of ethical development, transparent use of training data, and addressing bias and discrimination. Implementing RAI not only promotes brand trust and loyalty but also unlocks new revenue opportunities and drives innovation and efficiency in business operations. Failure to adopt responsible AI practices can lead to regulatory consequences, loss of trust and revenue, and even threats to national security. By prioritizing responsible AI, businesses can harness the full potential of AI technology, drive innovation, and navigate the digital acceleration journey while avoiding potential pitfalls and creating a positive impact on society.

Failure to adopt responsible AI practices can lead to regulatory consequences, loss of trust and revenue, and even threats to national security.