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Karl Aguilar

Understanding and Addressing the Risks of AI



Artificial intelligence (AI) is rapidly reshaping our world for good and for ill. In the same vein, so much has been said about the risks of AI that many organizations remain hesitant to utilize it despite the benefits it can provide them.


Thus, in order for AI to be adopted and efficiently utilized by more organizations, it is important to effectively address these risks head on. But before doing so, it is important to look beyond misconceptions and potential misinformation and understand what AI brings to the table.


Understanding the risks of AI


Filtering the misconception and misinformed views, there are three major risks surrounding AI that stakeholders must urgently deal with:


  1. Potential for misuse - AI systems, if trained on biased or poor-quality data, which can stem from poorly chosen sources, can perpetuate discrimination or reinforce harmful stereotypes.

  2. Data privacy - AI algorithms require massive amounts of data to learn and make predictions, which raises concerns about how personal information is collected, stored, and used, especially if without proper data governance policies. Such oversight can lead to identity theft, data breaches, or unethical surveillance.

  3. Transparency - AI systems tend to make decisions that are difficult to understand or explain. Without proper governance, this opacity could lead to unfair or unaccountable decisions, which can be detrimental in critical areas like healthcare, finance, or criminal justice.


Compounding matters are the fragmented regulatory policies of different jurisdictions when it comes to AI. Different countries have varying standards regarding data privacy, security, and ethical use. Navigating this complex landscape requires organizations to have a thorough understanding of regional regulations, which can be especially tricky when working with global datasets.


There is also the broader societal concern about the impact of AI on employment. As AI systems become more capable, they could automate roles traditionally held by humans, which could lead to widespread job displacement. Which can worsen economic inequality if measures are not in place.


The inability to effectively address the risks of AI only serves to hinder organizations from harnessing AI to its fullest. The promise of efficiency, savings in time and resources, improved productivity, and advancing further innovations that AI promises to deliver are things organizations can stand to benefit from.


Governed data and how it can address AI’s risks


The risks surrounding AI are multifaceted and require a proactive approach. But at the core of this approach is a central principle: the need for high-quality, well-governed data.


Properly governed data, anchored in principles like privacy-by-design and transparency, can ensure that data is accurate, secure, and ethically managed. Non-Invasive Data Governance offers a practical path forward by embedding governance practices into everyday workflows without overwhelming data professionals. Meanwhile, high-quality data, free from bias and errors, ensures that AI systems make fair and accurate decisions. Privacy-focused data governance practices protect personal information, fostering trust among users.


Governed data also promotes transparency. By clearly documenting data sources, processing methods, and decision-making criteria, organizations can make their AI systems more explainable and accountable, further building confidence in AI decisions, especially in critical applications like healthcare or finance.


Then there is compliance. With evolving data privacy regulations like the GDPR and CCPA, governed data ensures that AI systems comply with these regulations by anonymizing sensitive information and tracking how data is collected, processed, and used. This compliance not only reduces legal risks but also boosts public trust in AI.


Closing thoughts


Governed data, maintained through Non-Invasive Data Governance, can help organizations effectively navigate and overcome the significant challenges that AI has brought to the forefront. By embedding governance practices into everyday workflows, NIDG minimizes the risks and maximizes the promises of AI, ensuring that this powerful technology serves humanity’s best interests.

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