Why Enterprises need Responsible AI- not just powerful AI

By Piyush Somani--Promoter, Managing Director and Chairman-ESDS Software Solution Ltd.

Artificial Intelligence (AI) has transformed in the recent years that has shaped the industries across the globe. It has swiftly made its way from a niche technological concept to a strategic imperative central to business operations and growth. While we know most companies have already adopted AI in whichever way they can, World Economic Forum’s Future of Jobs Report 2023, states that over 75% of businesses across the world plan to incorporate AI into their operations within the next three years.

As the AI systems become more unified into enterprise functions, it's significant to shift the focus from merely developing powerful AI to ensuring that these systems are responsible, ethical, and trustworthy. Responsible AI (RAI) accentuates transparency, fairness, accountability, and alignment with societal values which is the need of the hour.

The Imperative for Responsible AI

1.       Building Trust and Reputation

Trust is foundational for any business. Responsible AI helps build trust by ensuring that AI systems are transparent and that their actions are understandable at all times. This transparency is critical, particularly when AI systems influence customer experiences and corporate decisions. A study by PwC revealed that more than 75% of respondents who use responsible AI solutions reported improvements in data privacy, customer experience, confident business decisions, brand reputation, and trust.

2.       Modifying Risks and Ensuring Compliance

The positioning of AI systems without proper oversight can lead to unintended consequences. For instance, a study by Dimensional Research in collaboration with SailPoint found that 23% of IT professionals reported instances where AI agents were tricked into revealing access credentials, and 80% noted bots took unintended actions, such as accessing unauthorized systems. Implementing responsible AI practices helps in identifying and mitigating such risks, ensuring compliance with regulations and protecting the organization's integrity.

3.       Enhancing Decision-Making and Reducing Bias

AI systems are only as good as the data they are trained on. If unchecked, AI can disseminate existing biases, leading to unfair outcomes which why we need Responsible AI. It underlines the reputation of monitoring AI systems to ensure they perform as expected and remain wary against bias and discrimination. This caution ensures that decisions made by AI systems are fair and equitable.

4.       Driving Sustainable Innovation for the future

Responsible AI is more than just risk avoidance; it is also about encouraging sustainable innovation. By incorporating ethical considerations into AI development, firms will be able to design solutions that are not only effective but also in line with society ideals. This relationship ensures the long-term success and adoption of AI technologies. The World Economic Forum emphasizes that enterprises must commit to responsible AI standards in order to remain competitive and avoid liabilities.

India's Direction in Responsible AI

India is emerging as a world leader in responsible AI maturity. According to a recent McKinsey poll, Indian firms are at the forefront of implementing responsible AI practices, suggesting a greater understanding of the possible hazards involved with AI deployment and the significance of ethical methods. This proactive strategy presents India as a paradigm for responsible AI implementation globally.  

Conclusion

As AI enters all parts of corporate operations, the emphasis must move from just harnessing its power to ensuring its responsible application. Ensuring Responsible AI practice is not a luxury; it is an additional value for businesses seeking long-term growth, trustworthiness, and accomplishments. By focusing on ethical problems, transparency, and responsibility, businesses may maximize the benefits of AI while minimizing its inherent risks.