Susana Sierra is CEO of BH Compliancewhich measures the effectiveness of corporate governance programs and corporate governance.
As artificial intelligence (AI) continues to develop and become more powerful, businesses are benefiting from how it allows them to optimize their efficiency and productivity. By analyzing large amounts of data and automating tasks, AI helps improve customer service and operational efficiency across industries. However, this also carries a series of risks and, therefore, I believe that you, as a leader, have a great responsibility to be aware of them and manage them ethically.
THE Edelman Trust Barometer 2024 has once again shown businesses as the most trustworthy institutions, ahead of NGOs, governments and the media. But despite the fact that companies also appear at the forefront as the most reliable organizations for introducing new technologies safely and in an accessible way, they scored only 59% in this indicator, which is below the threshold of 60% established by the Barometer as constituting “confidence”. ” Respondents believe that innovation is poorly managed due to insufficient government regulation and a lack of trusted traditional leaders. They are generally wary of the independence of science from politics and ‘money.
Recent World Economic Forum Annual Meeting at Davos, where I had the privilege to attend, AI was one of the main topics. Under the slogan “Rebuilding Trust,” experts agreed on a conscientious approach to its use and interaction with other technologies, as well as a commitment to putting people at the center. Although there is an optimistic and collaborative view of the possibilities offered by AI tools, their continued importance highlights the need to promote and regulate them according to highly ethical standards.
It is precisely the absence of regulation that has led some companies to prefer to limit the use of AI, or even ban it, lest this gives way to hacks, leaks of confidential data, disinformation or a replacement of critical thinking. The truth is that AI’s potential to transform industries will affect us sooner or later, and we won’t be able to give it up, even if we want to.
Companies are therefore called upon to meet these challenges to explain, optimize and use AI ethically. Here are some steps to achieve this.
1. Understand its use and scope.
Although the competitive advantages of AI for businesses are diverse, it is important not to settle for its solutions. We must first understand its capabilities, limitations and impacts. Consider the industry, size and composition of your business as well as the effectiveness of the solution offered by the different tools. Likewise, it is necessary to determine who should use it and how to maximize its potential efficiently and safely.
2. Implement it correctly.
Strong corporate governance that supports the cultural change that AI can bring about is aware of its evolving and unpredictable nature and places ethics at the forefront as a fundamental pillar of its implementation. It’s not just the what that matters, but also the how. Companies should establish a policy on the use of AI in their compliance programs and continually monitor its effectiveness.
3. Responsible leadership model.
The role of management teams is fundamental to understanding AI and its application in business strategy. Company leaders must be involved in these decisions, ensure they are implemented ethically and transparently, communicate its benefits to workers and investors, and certify that they are monitored and supervised to manage potential risks. Overall, transparency is key to maintaining stakeholder trust.
4. Establish preventative controls.
A cybersecurity policy must be created to ensure the use of AI. The associated controls must be flexible to adapt to the changes brought about by the constant evolution of this technology. As with implementation, their effectiveness must be measured and monitored periodically to manage risks, which also evolve and become more sophisticated. Make sure boards are aware of AI development and implementation so they can oversee controls, recognize risks, and detect possible deficiencies to help correct them in time.
5. Communicate effectively.
Good corporate governance should also manifest itself in how your company integrates its outreach and outreach efforts to all its stakeholders. One of people’s biggest fears about AI is being replaced by it; therefore, your communication should be simple, transparent and free of technical terms that make it difficult for workers to understand.
AI does not necessarily mean replacing jobs, but it will require adaptation and development of new technical skills. As the Trust Barometer indicates, when people feel they have control over how innovations affect them, they are more likely to accept rather than resist them.
6. Train and select your staff deliberately.
As discussed in the last point, AI imposes new challenges regarding worker capabilities and expertise. To navigate this technological revolution, individuals will need to equip themselves with essential new skills. When considering new hires and promotions, look for those who demonstrate adaptability, curiosity and open-mindedness. Other helpful traits include a willingness to combat misinformation, a commitment to lifelong learning, critical thinking skills, and an ethical conscience.
Artificial intelligence is here to stay. This reality invites us to try to understand it better in order to help respond to the fears raised by its rapid evolution and its lack of regulation. And as was proposed at the Davos Forum, responses to the major current challenges and the long-awaited restoration of confidence will only be possible thanks to public-private cooperation in which all stakeholders participate in the debate. Businesses have a big task ahead of them.
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