AI technologies and how they are moving from Beta to the Boardroom in 2023

These days, we seem to take technology and how advanced and intertwined it has become in our daily lives for granted. Whether we like it or not, the resurgence of Artificial Intelligence, or AI for short, forms an integral part of our lives these days.
You may not realise this, but we are all using AI increasingly in our everyday lives. Everything from unlocking our phones using facial recognition to smart home automation where your smart device listens for your next request to play your favourite song or podcast or even to start your robotic vacuum cleaner.

Sounds very much like that 70’s show - the Jetsons, where everything was based on a utopian future. We are now living (at least in part) that futuristic life in 2023, and it is important for family businesses to embrace this to remain current and protect family interests.

Today, ChatGPT is all the buzz when it comes to AI technology. ChatGPT is a conversational AI chatbot that can produce text for you based on any prompt you input. From this, it can generate emails, essays, poems, letters and more.
With each iteration, the AI becomes smarter and more “confident” for users in different environments and under varying conditions. We are certainly now seeing this technology rapidly move from a developmental tool to the boardroom in Australia.

AI has become an increasingly popular and powerful tool in the world of business, providing companies with a competitive edge and driving innovation.
However, while there are significant advantages to adopting AI, there are also potential risks and challenges that need to be considered.

Foundations of AI at a business and board level

AI is a technology that enables machines to learn from data and perform tasks that normally require human intelligence, such as perception, reasoning, and decision-making. At a business and board level, AI is a powerful tool for improving efficiency, productivity, and innovation. However, the successful adoption of AI requires a solid foundation that includes the following:

• An understanding of the potential benefits and limitations of AI: Before adopting AI, it is important to have a clear understanding of its potential benefits and limitations. AI can help businesses automate tasks, improve decision-making, and reduce costs. However, AI is not a magic bullet and may not be suitable for every business or every task. Understanding the potential benefits and limitations of AI is essential for making informed decisions about its implementation.
• Data requirements: AI requires substantial amounts of high-quality data to be trained effectively. Businesses need to have a clear understanding of the data requirements and the security risks potentially associated with any open platform technology. Be aware that the data you provide could potentially be exposed to a wider audience than you originally intended, so consider first whether your data is sensitive before engaging with a public implementation of any AI product or platform.
• Ethical implications of AI: AI has the potential to significantly impact society, and businesses have a responsibility to ensure that their use of AI is ethical and transparent. This requires a clear understanding of the ethical implications of AI, such as bias and discrimination, and a commitment to ensuring that AI is used in a responsible and accountable manner.

The adoption of AI has the potential to deliver significant benefits for businesses including:

• Increased efficiency and productivity:
  AI can automate repetitive and time-consuming tasks, freeing up employees to focus on higher-value activities. This can increase efficiency and productivity, allowing businesses to do more with less.

• Improved decision-making: AI systems analyse copious amounts of data and provide insights that humans may not be able to see. This can help businesses make better-informed decisions, leading to better outcomes.

• Cost reduction: They can reduce costs by automating tasks and improving efficiency. For example, from a customer service perspective, AI-powered chatbots and AI-powered recommendation engines can suggest products or services that are tailored to each customer's individual preferences.

• Innovation: AI can drive innovation by enabling businesses to develop new products and services that were previously impossible or too expensive to create. For example, AI can be used to develop new drugs, optimize supply chains, or improve logistics.

With so many benefits to using AI technology, there are risks that also need to be considered in business today. While the adoption of AI offers significant benefits, there are also potential risks and challenges that need to be addressed.

• Lack of transparency: AI algorithms can be difficult to interpret and understand, which can make it hard to detect and correct errors or biases.
• Data privacy and security: As AI systems rely heavily on data, there is a risk of data breaches and privacy violations. This is particularly concerning given the vast amount of personal data that businesses collect and store with digital platform service providers. Current Australian government privacy legislation is being reviewed to safeguard against any privacy violations.
• Dependence on AI: Overreliance on AI can lead to loss of human judgment and decision-making abilities, which can be problematic in situations where AI fails or makes incorrect decisions. Always review any AI output and ensure it meets your requirement before any implementation.
• Malicious use: As AI becomes more advanced, it can also be used for malicious purposes, such as cyber-attacks, fake news, and propaganda. This is where your cybersecurity and technology structure need to be considered and mapped to meet your future use of AI.

Most businesses spend years and countless resources to acquire and create their digital assets. AI technologies have now evolved to a point where it is essential for businesses to realise the benefits that can be derived from its use. Similarly, it is imperative to recognise the risks and take proactive measures to mitigate them, to ensure that AI is used safely and responsibly.

Peter Gatt, Business Development Manager – Majestic Computer Technology