Plotting a path to responsible AI is essential

WITH financial services spending on artificial intelligence (AI) in the Asia-Pacific region forecasted to grow 22.1 per cent annually to US$4.9 billion by 2024, reliance on the technology is heading in only one direction: up. As these investments scale, AI technology will have a growing influence on the financial sector and consumers' everyday lives. From algorithmic trading to fraud detection and portfolio optimisation; organisations are increasingly leveraging AI to automate key processes that, in some cases, are making life-altering decisions for their customers. Not understanding how these decisions are made, and whether they are ethical and safe, create enormous legal vulnerabilities and business risks.

How then can businesses harness the power of AI to unlock new efficiencies and business value, while minimising these vulnerabilities? The answer lies in ensuring AI solutions are deployed responsibly - where AI and machine learning (ML) models are robust, explainable, ethical and auditable. Yet, the primary challenge most business leaders are faced with in achieving this golden standard is a lack of understanding around their AI models. A recent survey by FICO revealed that 65 per cent of business leaders are unable to explain how specific AI model decisions are made despite having increased AI investments overall in the past 15 months.

INSUFFICIENT KNOWLEDGE