AI Doesn’t Just Scale Solutions – It Also Scales Risk

Companies that leverage data and AI to create scalable solutions aren’t just scaling their business. They are also scaling their reputational, regulatory, and legal risks.

In recent years, the world of business has been upended by technological advances. The most significant of these is the explosion of data and the advent of powerful new tools for analysing it, such as BI and AI. These changes are driving a new wave of innovation in which companies are harnessing data to create scalable solutions to problems that have long bedevilled them. But as they do so, they are also scaling their reputational, regulatory, and legal risks.

Consider how AI is being used to drive growth in three industries – health care, retailing, and lending – and the implications for each. In health care, providers have begun using predictive analytics and machine learning to identify which patients are at risk for complications such as heart attacks or strokes and then intervene before those events occur. This not only improves patient outcomes but also reduces costs by preventing unnecessary hospitalisations. Similarly, retailers are using AI-based applications such as computer vision to streamline their supply chains and reduce inventory waste while also providing customers with personalised recommendations based on their purchase history. And lenders are using AI to assess creditworthiness more accurately than ever before – a development that is making it easier for people with limited credit histories to get loans while also reducing losses from defaults.

As exciting as these developments are, they come with challenges that companies must address if they want to reap the full benefits of AI while mitigating its risks. In this article we explore those challenges and offer guidance on how companies can manage them effectively. These risks pose serious threats not just to individual companies but also to whole industries if left unchecked, and although none is easy or inexpensive to fix completely, there is much that can be done now on the sooner rather than later doctrine.