A Responsible AI Strategy Is Essential For Your Business. Here’s Why
Mapping a strategy for the responsible use of AI might just be one of your most important business priorities this year. Before jumping on the AI bandwagon, businesses, including SMEs and e-tailers, should regulate AI use to control risks and maintain consumer trust.
- AI adoption is gaining pace, with organizations starting to derive value from this new technology.
- But businesses quick to jump on the AI bandwagon can be blindsided by risks around data privacy, cybersecurity, bias, and more.
- Discover how a responsible AI strategy helps companies benefit without sacrificing ethical principles, user privacy, and customer care.
When did you last use artificial intelligence (AI) for work? Has it become so routine you no longer think about it, or is your company cautiously limiting AI applications?
Either way, business adoption of generative AI (gen AI) is gaining pace. 2024 has seen many organizations start to derive real value from this new technology, particularly with refinement. In a recent McKinsey survey, around 65% of organizations reported regularly using gen AI, nearly double the percentage from just ten months before.
Either way, business adoption of generative AI (gen AI) is gaining pace. 2024 has seen many organizations start to derive real value from this new technology, particularly with refinement. In a recent McKinsey survey, around 65% of organizations reported regularly using gen AI, nearly double the percentage from just ten months before.
Business use of AI is continually being refined
At FedEx, we’ve always known that AI will be crucial to how we transform our operations for what’s next. That’s why we’ve been testing out different applications for AI to make our supply chains smarter. This includes AI-powered sorting robots to drive efficiencies at our regional hubs, and using AI to better forecast demand and improve our capacity planning.
However, in the race to adopt AI, some businesses could be blindsided by the technology’s risks. These include risks related to data privacy, cybersecurity, bias, inaccuracy, and intellectual property (IP) infringement. Adopting AI without proper guardrails can lead businesses down a disastrous path.
However, in the race to adopt AI, some businesses could be blindsided by the technology’s risks. These include risks related to data privacy, cybersecurity, bias, inaccuracy, and intellectual property (IP) infringement. Adopting AI without proper guardrails can lead businesses down a disastrous path.
What is responsible AI, and how does it make small businesses more competitive?
Responsible AI is a set of principles for using AI applications and workflows ethically, minimizing risks and avoiding adverse outcomes. At the heart of responsible AI is building trust and increasing transparency to protect users.
In a recent article, I examined how it’s not just companies the size of ours that are looking into AI. SMEs are also exploring gen AI to automate tasks. But despite widespread adoption, very few organizations have governance in place to scale AI use responsibly.
Large organizations have a company-wide council or board with the authority to make decisions on responsible AI governance. Additionally, only organizations require AI risk awareness and mitigation as skill sets for technical talent. That means start-ups and SMEs are largely self-governing, and may need extra support to agree on safeguards.
However, business owners can certainly use AI to achieve a competitive edge. Here’s how adopting a measured, responsible approach to AI helps you stay competitive.
Large organizations have a company-wide council or board with the authority to make decisions on responsible AI governance. Additionally, only organizations require AI risk awareness and mitigation as skill sets for technical talent. That means start-ups and SMEs are largely self-governing, and may need extra support to agree on safeguards.
However, business owners can certainly use AI to achieve a competitive edge. Here’s how adopting a measured, responsible approach to AI helps you stay competitive.
1. Put customers first by earning their trust
One of the most important elements of delivering outstanding customer experiences is trust. Maintaining trust will be key to retaining loyalty as the relationships you build with your customers develop. AI is a potential threat, meaning a responsible AI strategy is critical. SMEs must develop mechanisms to protect user data from unauthorized access and maintain strict confidentiality.
Unsurprisingly, AI’s harvesting of personal data raises consumer concerns over user data privacy. Most recently, Meta has come under fire for scraping images from social networks Facebook and Instagram to use for AI training models. This has sparked fury, with many consumer watchdogs warning that ‘AI harvesting’ is flying under the radar, with no proper safeguarding of consumer rights.
One of the most important elements of delivering outstanding customer experiences is trust. Maintaining trust will be key to retaining loyalty as the relationships you build with your customers develop. AI is a potential threat, meaning a responsible AI strategy is critical. SMEs must develop mechanisms to protect user data from unauthorized access and maintain strict confidentiality.
Unsurprisingly, AI’s harvesting of personal data raises consumer concerns over user data privacy. Most recently, Meta has come under fire for scraping images from social networks Facebook and Instagram to use for AI training models. This has sparked fury, with many consumer watchdogs warning that ‘AI harvesting’ is flying under the radar, with no proper safeguarding of consumer rights.
Last year, the fightback against AI was dramatically thrown into the spotlight, with a host of celebrity actors joining a months-long Screen Actors Guild strike to protest against the use of gen AI in film and media production.
What many see as unscrupulous data practices could lead to a string of lawsuits and legal challenges, and it may take years before proper governance is in place. Until then, many consumers worry that we’re effectively in an AI ‘wild west’, where anything goes.
What many see as unscrupulous data practices could lead to a string of lawsuits and legal challenges, and it may take years before proper governance is in place. Until then, many consumers worry that we’re effectively in an AI ‘wild west’, where anything goes.
2. Make sure AI complements your commitment to diverse, inclusive practices
In this unsettling environment, small businesses should take great pains to explain to customers and potential partners what their stance on AI privacy is. Aim to be totally transparent about how you use and safeguard personal data. Trust is essential in today’s landscape, and earning customer trust can be a clear, winning differentiator from your competitors.
Users have also raised concerns over the implicit biases of AI systems. Having a responsible AI strategy means policing AI algorithms to check that they’re fair. Make sure you monitor regularly, proactively addressing any bias that may arise. This prevents discrimination, ensuring customers, employees and any potential talent you hire are not subject to unfair bias.
In this unsettling environment, small businesses should take great pains to explain to customers and potential partners what their stance on AI privacy is. Aim to be totally transparent about how you use and safeguard personal data. Trust is essential in today’s landscape, and earning customer trust can be a clear, winning differentiator from your competitors.
Users have also raised concerns over the implicit biases of AI systems. Having a responsible AI strategy means policing AI algorithms to check that they’re fair. Make sure you monitor regularly, proactively addressing any bias that may arise. This prevents discrimination, ensuring customers, employees and any potential talent you hire are not subject to unfair bias.
3. Use AI to support sustainability
Sustainability is a strategic priority among CEOs, and most consumers today expect the companies they buy from to be sustainable.
A push for greater transparency means businesses are transforming how they collect and report sustainability data. A responsible AI strategy can help guide how business activities, carbon footprint, and customer information are reported ethically and accurately across the supply chain.
Sustainability is a strategic priority among CEOs, and most consumers today expect the companies they buy from to be sustainable.
A push for greater transparency means businesses are transforming how they collect and report sustainability data. A responsible AI strategy can help guide how business activities, carbon footprint, and customer information are reported ethically and accurately across the supply chain.
3 key steps to take now for better AI governance
A responsible AI strategy helps companies seize growth opportunities without sacrificing ethical principles, user privacy, and customer satisfaction.
Thinking about how to get your responsible AI strategy up and running? Consider the following steps:
1. Develop ethical frameworks
Put together an ethics framework that provides a clear roadmap for responsible AI adoption, covering transparency, fairness, privacy protection, and accountability.
Start by defining and developing a set of responsible AI principles that align with your values and goals. Once you’ve established robust AI governance policies and practices, share them with your employees and end-users. You can consider publishing information on your company website for stakeholders to see.
Put together an ethics framework that provides a clear roadmap for responsible AI adoption, covering transparency, fairness, privacy protection, and accountability.
Start by defining and developing a set of responsible AI principles that align with your values and goals. Once you’ve established robust AI governance policies and practices, share them with your employees and end-users. You can consider publishing information on your company website for stakeholders to see.
2. Conduct training on responsible AI
Conduct training programs to educate your workforce on responsible AI practices. Training sessions should be refreshed regularly, as AI is changing fast. Remember, prevention is better than cure. By warning employees of the risks, you could avoid hefty fines and reputational damage from non-compliance with future AI regulations.
Conduct training programs to educate your workforce on responsible AI practices. Training sessions should be refreshed regularly, as AI is changing fast. Remember, prevention is better than cure. By warning employees of the risks, you could avoid hefty fines and reputational damage from non-compliance with future AI regulations.
3. Make sure human oversight is front and center
Always involve human oversight in critical decision-making processes. Having clear lines of accountability ensures that human beings can still be held responsible for the outcomes of AI systems.
Always involve human oversight in critical decision-making processes. Having clear lines of accountability ensures that human beings can still be held responsible for the outcomes of AI systems.
Using AI to power business growth and opportunity
At FedEx, I see the value of AI firsthand every day, as our responsible AI practices help us power the supply chains of tomorrow.
From optimizing logistics operations and simplifying customs clearance to our AI-powered virtual assistant that transforms how we serve customers; AI can help us make each customer experience outstanding.
There are endless advantages to AI adoption. Businesses have to be more clear-sighted about their use of AI. By installing the necessary guardrails and not sacrificing quality and trust for automation and convenience, SMEs can use AI to enhance competitiveness and increase customer trust. Ultimately, that’s a win-win all around.
From optimizing logistics operations and simplifying customs clearance to our AI-powered virtual assistant that transforms how we serve customers; AI can help us make each customer experience outstanding.
There are endless advantages to AI adoption. Businesses have to be more clear-sighted about their use of AI. By installing the necessary guardrails and not sacrificing quality and trust for automation and convenience, SMEs can use AI to enhance competitiveness and increase customer trust. Ultimately, that’s a win-win all around.
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President,
Asia Pacific, FedEx
Kawal started out as an engineer at FedEx over 27 years ago. She’s now the President of FedEx Express AMEA and is based in Singapore.
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