Responsible AI from day one: 8 questions founders must answer

LTSE Team

As investments and developments in AI gain momentum, startups must prioritize ethical and responsible AI innovation from day one. By doing so, they can distinguish themselves from competitors and appeal to stakeholders who prioritize responsible innovation initiatives. Most importantly, startups can prevent reputational damage and legal liabilities that may arise from the unethical use of AI.

Ethical AI is not solely a moral consideration. It’s also a business imperative that can foster trust among stakeholders while empowering startups and their consumers. 

To ensure the development and deployment of responsible AI, here are eight questions startups must ask early on.

#1 Are you transparent with your stakeholders about how you collect, store, and use collected data? 

Concerns about privacy and data collection are commonplace in relation to AI, so it’s crucial for startups to clearly communicate their data practices and openly engage with stakeholders to establish trust.

#2 Are you ensuring that your datasets are diverse and minimize any bias?

Even the best AI tools are not immune to biases as they’re only as diverse as the datasets they feed on. Avoid potential biases and discrimination by ensuring diversity in datasets and actively monitoring and evaluating areas for improvement.

#3 Are you adequately minimizing the risks of potential misuse of your AI systems?

Properly addressing the risk of potential misuse is non-negotiable to protect your reputation, customers, and investors. It is vital for startups to have robust security systems and mitigation plans in place, as without this, establishing strong foundations for your AI systems will be impossible.

#4 Have you established a unified set of AI principles and an AI governance framework?

Striving for responsible AI without clear guidelines and frameworks is pointless. Startups must establish clear AI principles and governance frameworks to guide the deployment and development of AI. This ensures you can minimize potential harm and promote fair, responsible use.

#5 Are you providing AI ethics-related training to your teams?

Having frameworks and principles in place is a starting point, but you still need to rely on your startup's members to help realize them. Provide your teams with AI ethics-related training to educate them about the ethical implications and dangers of AI systems. This effort goes a long way in fostering a culture of responsible AI in your startup.

#6 Have you considered the wider potential impact on society and the environment?

It is important to consider the wider picture of AI’s potential impact on society and the environment. Failing to do so can lead to unintended consequences in the long run, including job displacement and worsening societal inequalities.

#7 Are you engaging with external counsel to better understand the implications of AI?

It is crucial for startups to engage external counsel, such as ethicists and lawyers, to better understand the implications of AI. From accounting experts’ perspectives, startups can effectively position themselves to identify and mitigate potential risks and improve their AI frameworks.

#8 Have you considered establishing a product advisory board to provide oversight/guidance for the ethical use of AI?

Establishing a product advisory board composed of relevant experts can provide oversight and guidance in ensuring the responsible and ethical use of AI. By involving external advisors, startups can gain insights into potential dangers, receive recommendations on best practices, and prevent the development and deployment of AI systems that could cause unintentional harm.

Ensuring responsible and ethical use of AI is a requirement to fully realize its potential. Startups must prioritize addressing the eight questions above as early as possible.

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Disclaimer
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Information about the company is provided by the company, or comes from the companies’ public filings and is not independently verified by LTSE. Neither LTSE nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding LTSE-listed companies are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. Advice from a securities professional is strongly advised.
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