Artificial Intelligence (AI) is the big technological boom of this century, and many owners have adopted it into their business strategies with others following suit. This is because the amount of data is growing at a tremendous speed while the operating capacity of a firm remains the same. Incorporating AI into the business mix will lighten the load, but the risks associated with it must be understood before.
Here are the 4 key risks to look out for while integrating AI into your business.
By being aware of these challenges, you can navigate better and utilize the transformative power of AI.
Biases Due to Insufficient/Poor Data
Algorithms for Machine Learning (ML) depend on the quantity of data to provide an accurate overview. Basically, the larger the data sample, the better the quality of the results will be. The algorithms are trained using this data, and when it is either insufficient or impure, then the system is not calibrated properly. This can affect the decision-making process as any discriminatory biases present in the data will be visible in the outcome of the algorithm.
Complex Integration System
Implementing it in the right location without hampering the customer experience is a challenge to figure out. Then, a complex set of infrastructure, which is to be managed by individuals with high expertise in the field, requires investing a good amount of time. This will happen in the back end while ensuring smooth business operations at the front end. Along with this, there can be the displacement of non-AI trained workers, which will add another layer of complexity.
Vulnerable to Cyberattacks
The availability of large amounts of personal data within the AI network will make it appealing to hackers. Since many of these systems will be integrated through cloud computing, it generates new points of entry for cybercriminals. Beyond data theft, there can be financial and infrastructure losses.
Periodic Legal and Regulatory Changes
As AI is still a new-age technology that is rapidly developing at an alarming speed, the regulations surrounding it are changing as well. Being informed of these changes will ensure a smooth implementation of AI. However, legal compliance with ethical standards set by the governing body will have to be followed strictly to prevent any lawsuits or loss of company reputation.
In conclusion, there are many risks associated with incorporating AI into your business landscape. They can all generate legal and financial issues, which can not only impact operations but might derail your firm. Keep the customer in mind while considering any major changes to your business and mitigate these risks by knowing about them.
