As businesses increasingly consider artificial intelligence tools to augment, supplement, or replace a variety of functions, it’s crucial to update risk-management frameworks to reflect best procurement practices.
Failing to do so can lead companies to adopt what seems like an AI panacea, but is actually a Pandora’s box of regulatory enforcement and litigation risks.
Businesses should look to the World Economic Forum’s guidelines for adopting AI responsibly and consider the following questions when procuring AI tools.
Do I Understand the Data?
AI tools can seem complicated, but they’re only as robust as the data they’re trained on. Businesses should seek assurances from their AI vendors on collecting, using, and disclosing data used to train the model. Vendors should demonstrate they secured all the consent necessary when collecting data from consumers under applicable law.
Businesses also should vet the AI tool’s data usage and training methods when onboarding it. And vendors should detail their governance programs, audits, and other mechanisms that ensure the tool’s usability, reliability, and potential for bias, inaccuracies, and unfairness.
When inputting company data, businesses…
