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Intro

One of the objectives for digital transformation for an organization is to be effective. Artificial Intelligence (AI) is a key driver for effectiveness / productivity.
Navigating complex real time business scenarios and having AI as a silver bullet has its own risks. With a lot of buzz around AI technology, the observation is that businesses still struggle with adoption due to ambiguity with the risk of implementation.

Proceed with Caution

Businesses provide products and services to consumers and Safe use of the offerings are key for adoption. The key is to understand the boundary within which AI technology is safe to use and benefits the customer, outweighing the cost of implementation / usage of the service.
Hence, it is critical to identify, communicate and address the risk associated with AI. The common proxy for risk management is ticking all the compliance / regulatory mandates. Need to factor other dimensions as well.

Below are few themes that need to be considered as part of Risk management while implementing AI technologies:

The broad categorization is about how the technology is implemented and then how businesses have used the technology to drive effectiveness. The above figure categorizes the risk into 5 themes and suggests few examples for each theme.

Conclusion

Risk is a combination of potential impact (adverse impact) and the likelihood of occurrence for those impacts. Though the benefits of AI technology are highlighted so often , it is equally important to look into the risks with implementing the technology.

Further reading

https://sloanreview.mit.edu/article/putting-responsible-ai-into-practice/