A new report released today by FICO and market intelligence firm Corinium finds that most companies are deploying AI at significant risk. Here are a few topline findings that illustrate why:
- 65% of respondents’ companies can’t explain how specific AI model decisions or predictions are made
- 73% have struggled to get executive support for prioritizing AI ethics and Responsible AI practices
- Only one-fifth (20%) actively monitor their models in production for fairness and ethics
The report, the second annual executive research effort by FICO and Corinium focused on chief analytics, chief AI and chief data officers, examines how global organizations are applying artificial intelligence technology to business challenges, and how responsibly they are doing so. In addition to a troubling widespread inability to explain how AI model decisions or predictions are made, the study found that 39% of board members and 33% of executive teams have an incomplete understanding of AI ethics.
With worldwide revenues for the AI market (including software, hardware and services) forecast to grow 16.4% year over year in 2021 to $327.5 billion, companies’ reliance on AI technology is heading in only one direction: up. The report’s findings point to an urgent need to elevate the the importance of AI governance and Responsible AI to the boardroom level; organizations 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, creates enormous legal vulnerabilities and business risk.