27-10-2022
Artificial intelligence (AI) and data science are increasingly relevant in today’s society. Our dependence on the power and vast capabilities of AI algorithms is growing. However, how prudent is this growing trust and reliance on these technologies? What are the associated risks?
Critical Business Decisions by AI
Many AI and data science models are known for their lack of transparency. These models are often referred to as "black boxes" because it is unclear how they produce their outputs. This lack of transparency arises from the self-learning nature of these algorithms, making it challenging for humans to intuitively understand how AI outputs are derived.
This poses significant risks as critical business decisions might rely heavily on AI outputs without the ability to verify whether errors have occurred during their production. Making crucial decisions based on AI judgments, without understanding how these judgments are formulated, can lead to undesirable outcomes with potentially severe consequences for a business.
Bias and Discrimination
Building on the black box principle, there is also the risk of making decisions based on biases and discrimination. A notable example is a tax authority that made decisions based on models incorporating citizens' ethnicity.
When companies use AI in human resources, such as in hiring, promotions, or terminations, there is a risk of systemic discrimination occurring without the responsible individuals within the company being aware of it.
Privacy Violations
Finally, the use of AI and data science in a company also carries the risk of violating individuals' privacy. While leveraging these techniques can provide valuable insights, as discussed in our previous article on "Applications of AI and Data Science," it often necessitates extensive data collection. For instance, customer analytics can enable more customer-centric operations. Beyond the ethical and moral concerns, companies may also face fines for unlawful data collection under the General Data Protection Regulation (GDPR).
Therefore, it is crucial to consider these risks when implementing AI and data science to ensure a successful and responsible implementation. If you wish to learn more or are interested in what Student Consultant can offer in the realm of AI and data science, please do not hesitate to contact us.
[1] https://www.volkskrant.nl/cs-baebefdb
[2] https://www.autoriteitpersoonsgegevens.nl/nl/over-privacy/wetten/algemene-verordening-gegevensbescherming-avg