AI strengths and weaknesses

Years ago, the Financial Conduct Authority in its Speech “AI for Consumer Good” mused that the main advantages in having a sensible way forward with AI, were-

• Creating value
• Collaboration

What FCA said worried it the most, was firms not thinking about AI at all.

Here are some of the weaknesses within AI right now, which no doubt are being streamlined and improved in the companies who are researching and developing AI:

• bias in AI results that grows exponentially because parameters in AI tool were biased to begin with
• unexplainable, or unexplained, results
• employees in businesses unwilling to engage with new things
• early adopters using AI without authorisation
• legal liability confusion due to interposition of AI into service delivery
• insufficient engagement by the Board, leaving matters to Tech teams without sufficient governance engagement
• malicious use

What are the bigger existential risks – in the macro context?  There is plenty of debate.  Theories include:

• extinction theory where AI takes over everything
• some industry players would like to see a prohibition or ban on AI, to keep more of a traditional playing field and less threat from automation
• Perhaps a hybrid where people can, opt-in or out, of AI-infused advertising, notifications, products or services –  depending on their personal vision of democratisation and empowerment
• Or, perhaps a transparency and openness solution (like the Cookies Notice) which signals to the consumer what proportion of the product/service is AI generated. 

AI could be the greatest way to make use of rich data sets, to enrich the lives of consumers, potentially make the world safer and solve deep inequalities.

It remains the case however, consumer trust and support – is not to be taken lightly:

• data breaches, data misuse, or exploitation of consumer trust, will dampen participation and reflect badly on firms
• not just the firm in breach but potentially entire sectors, and for long time periods.

The solution FCA put forward in its speech, when AI was at its inception, for managing the worries, consequences and application of AI, was firms having ‘good governance’ to manage risk. 

That is exactly the same approach we take.

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