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Artificial intelligence has embedded itself into the business landscape. No longer the purview of Big Tech companies alone, firms across various industries are actively integrating AI into their processes, acquiring tech startups and scouting opportunities to deploy the technology in the near future. COVID-19 has only accelerated this trend as businesses have had to contend with plummeting revenue and workforce restrictions.��

But as companies increasingly look toward AI to solve business challenges and increase their profitability, what risks will they face? How might they mitigate such risks? What else should business leaders take into consideration? 

Balancing Public Health and Individual Liberty

Despite the substantial benefits that the technology promises, AI deployment without safeguards poses risks at all levels of business, especially for traditional, non-tech companies. To limit severe financial and reputational harm, it is crucial that companies weigh the many benefits of AI use against the risks intrinsic to its use, as well as associated concerns from the broader community. Consider, as one particularly pertinent example, the myriad ways wherein AI has been deployed in response to the global pandemic: from contact tracing to enhanced infection risk profiling, those who develop and use such cutting-edge techniques must carefully balance the dual imperatives of .��

Defending the Decisions of Algorithms

Given the self-learning and automated nature of AI, a well-known concern associated with the technology is that of “explainability,” especially with public-facing “black box” AI models that make decisions on sensitive or consequential issues such as job recruitment, credit risk assessments and medical diagnoses. A lack of transparency and traceability, particularly when using externally procured applications, exposes businesses to significant reputational harm.��

For instance, numerous controversies in recent years have shown us that AI systems can inadvertently generate biased and potentially  that exacerbate or even perpetuate inequalities. Organizations, especially when such adverse outcomes to customers and staff are possible, must be able to explain and defend algorithm-based decision processes and their output to a range of stakeholders, including subject-matter experts and even the legal community in cases of alleged malpractice. Big-name tech firms with dedicated AI specialists on hand have long struggled with this issue; non-tech companies are also at risk of intense public scrutiny and brand damage.

Cybercriminals Exploiting AI

Cyber risk is also a significant threat to companies using AI, especially with the rush toward digitization during the COVID-19 lockdowns. In fact, participants in a  of more than 12,000 business executives rated cyber risk as the top risk for doing business in the U.S., the U.K., and Canada — among other developed economies — over the next decade. The growing use of AI in critical business operations will only increase vulnerability to cybercrime as hackers can gain control of entire systems simply by manipulating their underlying algorithms. AI can moreover directly enhance the arsenal of cybercriminals who can now cause disproportionate levels of harm by leveraging the speed of decision-making enabled by automated programs. Smarter cyber threats, coupled with industry’s growing reliance on digital capabilities, only escalate the risks to operations and revenue streams.