AI Ethics and Bias: How do SMEs Navigate the Ethical Challenges in AI Adoption?
The conversation around AI often highlights its potential to drive efficiency and deliver high-quality products. However, even the largest companies are fumbling with implementation and presentation. One notable example is Google, whose AI chatbot was found to spout lies and misinformation.
These incidents are not isolated, causing consumers to be more apprehensive than enthusiastic about the use of AI. Consumers tend to distrust “AI-powered” products, doubting whether companies can adequately protect their privacy and root out biases when using largely unregulated AI technologies.
Understanding AI At Work
Despite growing concerns, AI’s potential to help SMEs thrive is hard to ignore. The enhanced computing power and ability to transform large data sets into valuable insights are especially appealing to SMEs with limited resources, who previously couldn’t afford the manpower to achieve what AI can at scale.
Results are compelling for SMEs who have already bet on AI. ModMed, a healthcare platform, saved $1.6 million by using an AI software to find and cut unnecessary software spend. UAE-based FC Beauty uses chatbots to assist customers and understand their audience’s needs from social media posts. Marketing firm ad-flex Communications saw conversion rates skyrocket to 439% after working with an AI system that analysed ads against thousands of factors.
The Ethical Dilemma of Using AI
While the potential of AI to turbocharge operations for SMEs is apparent, the technology isn’t without its dangers.
AI models rely on historical data to learn patterns and make decisions. In an ideal scenario, the training data would be fair and free from bias. Unfortunately, real-world data sets aren’t balanced.
Societal prejudices and discriminatory preferences can and have worked their way into training data. Amazon’s hiring tool was discovered to prefer male candidates because the resumes it used to teach itself were predominantly from men. OpenAI’s ChatGPT, which most popular commercial chatbots are built on today, has been found to hold racial prejudices when making judgements.
Correcting these biases can be extremely complicated, requiring technical knowledge that most SMEs don’t have access to. This makes most AI systems essentially “black boxes”, meaning that the internal processes can’t be easily understood. Without greater transparency, SME owners and employees will struggle to course-correct when AI systems are making decisions that are harming operations or consumers.
Privacy is another ethical concern when using AI. These systems require vast volumes of data to perform effectively. This means gathering and storing sensitive information such as personal identifiers or purchasing habits. With cybercrime against SMEs on the rise, a single breach can mean considerable legal consequences for businesses–and a loss of trust from consumers already wary of AI.
Ethical AI Practices for SMEs
Like every transformative technology, AI presents valid challenges for SMEs. However, these risks don’t have to keep businesses from harnessing the potential benefits of AI. While there are currently no comprehensive set of rules regulating AI use, more frameworks and guidelines like the European Union’s AI Act are bound to follow.
Meanwhile, SMEs can create the foundation for safe and trustworthy use of AI by adopting ethical AI practices.
Develop an Ethical AI Policy
Ethical use starts with a clear statement. Businesses should establish an AI ethics framework that will guide responsible AI use. The policy should cover fairness, and how the business will ensure that systems are designed to minimise biases.
Additionally, the policy should establish a commitment to staying transparent to stakeholders and customers about how AI is being used, what decisions it influences, and the security measures they’re enforcing to protect sensitive data.
Screen Your Vendors
With the industry for AI-powered solutions on the rise, discerning which companies look beyond profit can be challenging. Businesses must be thorough and ask key questions that will indicate if a vendor is committed to responsible AI use.
Service providers should be able to clearly explain how their models work, what data they use, how biases are mitigated, and how decisions are made–even to non-technical stakeholders. Vendors should also be compliant to the data privacy laws in your region, and should be able to explain how they collect and protect consumer data.
Train for AI Literacy
Much like cybersecurity, work needs to be done on both ends to ensure ethical AI use. While it’s the responsibility of vendors to clearly disclose how their model works and the risks of using them, businesses must also teach employees to maximise the efficiency of the tools while maintaining responsible use.
By adopting ethical AI practices, SMEs can harness the full power of AI while managing its risks. This responsible, measured approach will help foster trust and transparency, allowing businesses to stay competitive in an increasingly AI-assisted world.
At Evolvit, we’ve been helping SMEs navigate the complexities of technology and its integration for more than 20 years. Contact us and take the first step in forming an ethical and efficient strategy for AI use.
