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Introduction

As AI proliferates, responsible and ethical governance becomes imperative. This article reveals how most organizations' current RAI programs overlook risks from third-party AI services and new generative models like ChatGPT.

genioux GK Nugget:

"RAI programs must rapidly expand in scope to properly evaluate and govern AI across the entire ecosystem." — Fernando Machuca and Claude

genioux Foundational Fact:

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Organizations need to evolve their responsible AI (RAI) programs to address the growing risks from third-party AI tools and emergent generative models, through enterprise-wide governance, assessments, controls, and greater investment in RAI.

Top 10 genioux Facts:

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Most RAI programs focus narrowly on in-house AI systems.
Over 75% of companies use third-party AI tools but many don't evaluate the risks.
Most AI failures stem from inadequate governance of third-party tools.
63% of experts say current RAI programs are unprepared for generative AI risks.
AI-specific regulations are emerging, necessitating wider RAI governance.
Suggested actions include generative AI risk assessments and content filtering.
RAI programs need an enterprise-wide scope encompassing all AI use.
Direct CEO engagement in RAI boosts benefits and minimizes risks.
Now is the time to invest more in maturing RAI programs, not cut back.
Human oversight remains essential for responsible and ethical AI deployment.

Conclusion

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This analysis spotlights critical RAI gaps organizations must urgently address, by expanding programs to govern AI holistically across the ecosystem. Proactive enhancement of RAI will pay dividends in risk reduction and responsible AI advancement.

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The GK Article from MIT SMR

David Kiron and Steven Mills, Are RAI Programs Prepared for Third-Party and Generative AI?, MIT Sloan Management Review, November 14, 2023.

The article "Are RAI Programs Prepared for Third-Party and Generative AI?" from MIT Sloan Management Review discusses the challenges that Responsible AI (RAI) programs face in dealing with third-party AI tools and generative AI¹².

The article highlights the risks and failures of AI systems, particularly with the release of OpenAI's ChatGPT tool. It mentions instances where the chatbot fabricated stories, leading to legal and reputational issues¹. The article also discusses how companies were caught off guard by these developments, with many working on policies for employee chatbot use¹.

The rapid advancements in AI are making it harder to use AI responsibly, putting pressure on RAI programs to keep up¹. The growing dependence on third-party AI tools and the rapid adoption of generative AI is exposing companies to new commercial, legal, and reputational risks¹. In some cases, managers may lack any awareness about the use of such tools by employees or others in the organization — a phenomenon known as shadow AI¹.

The article concludes by stating that RAI frameworks were not written to deal with the sudden, unimaginable number of risks that generative AI tools are introducing¹. A majority (63%) of the panelists in the study agree or strongly agree that most RAI programs are unprepared to address the risks of new generative AI tools³.

Source: Conversation with Bing, 11/14/2023

(1) Building Robust RAI Programs as Third-Party AI Tools Proliferate. https://sloanreview.mit.edu/projects/building-robust-rai-programs-as-third-party-ai-tools-proliferate/.

(2) Responsible AI at Risk: Understanding and Overcoming the Risks of Third .... https://sloanreview.mit.edu/article/responsible-ai-at-risk-understanding-and-overcoming-the-risks-of-third-party-ai/.

(3) Are Responsible AI Programs Ready for Generative AI? Experts Are Doubtful. https://sloanreview.mit.edu/article/are-responsible-ai-programs-ready-for-generative-ai-experts-are-doubtful/.

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ABOUT THE RESEARCH

Here is a summary of the key points of the research of MIT Sloan Management Review and Boston Consulting Group:

The research is based on a global survey of 1,240 executives from organizations with over $100 million in annual revenue, across 59 industries and 87 countries.
Responsible AI was defined as a framework to ensure AI systems serve individuals/society while achieving business impact.
To identify AI Leaders, cluster analysis was done on survey questions about organization and personal RAI considerations.
An unsupervised ML algorithm (K-means clustering) identified maturity clusters based on RAI implementation scope and scale.
Scale refers to how widely RAI is deployed (ad hoc, partial, enterprise-wide).
Scope covers RAI program elements (principles, policies, governance) and dimensions (fairness, safety, environment).
Leaders showed the most maturity in both RAI scale and scope.
Additionally, interviews were done with 3 industry thought leaders.
A panel of 22 RAI experts from industry, policy and academia provided perspectives.

In summary, the global survey, statistical analysis, interviews and expert panel shaped the research methodology and identified organizational traits of RAI Leaders.

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ABOUT THE AUTHORS

David Kiron

David Kiron is the Editorial Director of MIT Sloan Management Review³. He is also the program lead for its Big Ideas research initiatives¹⁴. Prior to his current role, he was a Senior Researcher at Harvard Business School and a Research Associate at the Global Development and Environment Institute at Tufts University¹³⁴. Kiron holds a PhD in Philosophy from the University of Rochester and a BA from Oberlin College³. His work focuses on exploring how the changing nature of competition, work, and society influences the future of leadership². He has contributed to several research initiatives and articles, including "Are RAI Programs Prepared for Third-Party and Generative AI?"¹². His research provides valuable insights into the challenges and opportunities presented by the digital age¹².

Source: Conversation with Bing, 11/14/2023

(1) David Kiron - MIT Sloan Management Review. https://sloanreview.mit.edu/david-kiron/.

(2) Orchestrating Workforce Ecosystems - MIT Sloan Management Review. https://sloanreview.mit.edu/projects/orchestrating-workforce-ecosystems/.

(3) To Be a Responsible AI Leader, Focus on Being Responsible - BCG. https://web-assets.bcg.com/37/87/33f2ee9d4e2281e792472f4ec1bf/to-be-a-responsible-ai-leader-focus-on-being-responsible.pdf.

(4) The New Leadership Playbook for the Digital Age - MIT Sloan Management .... https://sloanreview.mit.edu/projects/the-new-leadership-playbook-for-the-digital-age/.

Steven Mills

Steven Mills is the Global GAMMA Chief AI Ethics Officer at Boston Consulting Group (BCG)¹. He is a member of the BCG Center for Digital Government where he is the global lead for artificial intelligence in the public sector¹. He is a core member of GAMMA and the Public Sector practice¹.

Mills has supported a wide range of private and public sector clients in health, finance, aerospace, social impact, technology, and defense¹. His technical leadership includes AI product development, implementing complex machine learning use cases, and providing decision support through large-scale modeling and simulation¹.

He is a recognized expert in "Responsible AI," helping a variety of public and private sector clients develop responsible AI strategies, implementation plans, and tools and training¹. He is an invited member of the World Economic Forum’s Global AI Council¹.

Prior to joining BCG, Mills spent eight years at Booz Allen Hamilton where he served as the Director of Machine Intelligence and the Director of Booz Allen Futures¹. Before that, he worked as a forest planning/operations research analyst at FORSight Resources¹.

Mills holds an MSc in operations research and forest management planning from Pennsylvania State University and a BSc in wildlife and fisheries management from Frostburg State University¹.

Source: Conversation with Bing, 11/14/2023

(1) Steven Mills - Boston Consulting Group. https://www.bcg.com/about/people/experts/steven-mills.

(2) Five Ways to Prepare for AI Regulation | BCG - Boston Consulting Group. https://www.bcg.com/publications/2023/how-to-prepare-for-ai-regulation.

(3) Steven Mills - Agenda Contributor | World Economic Forum. https://www.weforum.org/agenda/authors/steven-mills.

(4) To Be a Responsible AI Leader, Focus on Being Responsible. https://sloanreview.mit.edu/projects/to-be-a-responsible-ai-leader-focus-on-being-responsible/.

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Categorization

This genioux Fact post is classified as Breaking Knowledge that means: Insights for comprehending the forces molding our world and making sense of news and trends.