OpenAI’s ChatGPT was launched in 2022, sparking a rush among various industries to adopt this revolutionary technology. As Ginni Rometti, the former CEO of IBM, astutely noted, “AI will not replace humans, but those who use AI will replace those who don’t.”
Organizations are now restructuring to incorporate valuable generative AI use, which has been noted in Mckinsey’s most recent The state of AI report. This has led to redesigning workflows, improving governance, and mitigating risks. The U.S., in particular, is witnessing aggressive investment in AI, with Citigroup projecting total AI spending to surpass $2.8 trillion by 2029. Alongside, Wall Street brokers have also predicted tech giants’ spending on AI to reach $490 billion by the end of 2026, a significant increase from earlier estimates of $420 billion.
However, there seems to be a disconnect between the rapid adoption of AI and the ethical considerations surrounding its use. A recent report by AI advisory and digital engineering firm Solvd highlighted this disparity, revealing that while 97% of CIOs are concerned about AI ethics, only a third have the necessary oversight in place.
AI is moving fast- should companies move faster?
A survey conducted by Solvd, which involved 500 U.S.-based CIOs and CTOs at companies earning over $500 million in annual recurring revenue, shed light on a pressing issue. The executives surveyed agreed that while AI is evolving too rapidly to be fully controlled, the benefits it offers are too significant to ignore.
The respondents noted several advantages of using AI technologies, including improved strategy forecasting, enhanced customer support, expedited and more targeted hiring processes, and cost savings. Despite these benefits, companies continue to grapple with talent shortages and rising costs, coupled with the challenges of managing a technology that 37% of respondents believe is being integrated faster than it can be controlled.
Adam Gabrault, CEO of Solvd, emphasized that “AI is moving fast, but expectations are moving faster…We believe that ethical AI can be a sustainable force for business to improve resilience, unlock talent and enable strategic change.”
AI ethics can no longer wait
The ethical aspect of AI implementation is a topic of unanimous concern among CIOs and CTOs, with only 34% of respondents identifying it as the biggest threat to cost management and strategy building. This lag in the implementation of universal ethical benchmarks for AI use, dating back to its massification in 2022, is not surprising.
In fact, the Harvard Law School Forum on Corporate Governance has reported an increase in AI-related shareholder proposals in the U.S., with 23 being submitted between January 2023 and June 2024. Most of these proposals called for transparency on companies’ AI usage and ethical guidelines.
Solvd’s findings further underline the need for AI ethical benchmarks within companies. The lack of proactive oversight could lead to costly regulatory and reputational penalties once stricter standards are enforced. Past incidents involving Clearview AI and Anthropic, who faced hefty fines for unethical AI practices, serve as cautionary tales.
AI innovators in the U.S. are thus faced with the unprecedented challenge of reconciling divergent interpretations of “ethical use”, while still striving to harness the revolutionary potential of AI. As Gabrault rightly points out, “AI shouldn’t be a case of ‘adopt now, think about ethics later’. The most successful firms will be those treating governance as a strategic priority from the start. AI adoption must be both innovative and sustainable—it doesn’t need to be one or the other.”
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Image credit: Galiana Nelyubova via Unsplash.
