ETHICAL IMPLICATIONS OF AI-DRIVEN STRATEGY FORMULATION

This section provides an overview of the ethical challenges and considerations tied to AI’s growing role in strategic business formulation, drawing from key academic papers to illustrate each point.

The Nature and Origin of Biases in AI Algorithms

AI algorithms can acquire biases from human-generated data, often reflecting historical prejudices. Buolamwini & Gebru (2018) [7] highlighted the biases in facial recognition technologies, especially in gender classification based on skin type. This example shows how biases in training data can lead to skewed AI decisions.

Ethical Dilemmas Stemming from AI Decision-making

With AI’s role in critical decision-making, ethical challenges such as fairness in algorithmic decisions arise. Rahwan et al. (2019) [26] explored the complex moral dilemmas associated with machine morality. Issues of accountability in AI errors, like those in AI-driven vehicles, call for transparent and explainable AI systems.

Regulatory Challenges and Proposals

The fast pace of AI development poses challenges for regulatory frameworks. Brundage et al. (2018) [4] discussed the implications of malicious AI use and proposed comprehensive policy responses. Regulations like GDPR aim to control AI usage by giving individuals more data control.

Industry’s Responses to AI Ethical Concerns

Industries are responding to these ethical issues by forming ”Ethical AI” divisions and creating guidelines for AI fairness and transparency. Google’s ”AI Principles” set standards for responsible AI development and use. The partnership on AI, including major tech companies (Russell, Dewey, & Tegmark, 2015) [28], focuses on sharing best practices for ethical AI implementation, recognizing the need to balance AI benefits with ethical considerations.
This overview highlights that while AI offers significant advantages in strategic business formulation, it also raises important ethical issues that need careful consideration and action from both industries and regulatory bodies.
TABLE 6: ETHICAL IMPLICATIONS OF AI-DRIVEN STRATEGY FORMULATION