GYF VIRTUAL CPE DAY 2020 November 5, 2020

Ethics and Artificial Intelligence 1

ETHICS AND ARTIFICIAL INTELLIGENCE

DR. CYNTHIA BUSIN NICOLA, PROFESSOR, BUSINESS MANAGEMENT,

CARLOW UNIVERSITY

SPECIAL RECOGNITION TO RESEARCH ASSISTANT:

DYLAN D’ALESSIO

NOVEMBER, 2020

This Photo by Unknown Author is licensed under CC BYA

OVERVIEW

• Researched current Artificial Intelligence [AI]news articles (summer 2019- present)

• Explored Artificial Intelligence’s growing presence in business

• Explored ethical issues in functional areas of business, and, in some industries

• Created suggestions for higher education, professional associations and industry

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INTRODUCTION TO ARTIFICIAL INTELLIGENCE

• First definition proposed in 1955 by John McCarthy (1927-2011). He believed,

"every aspect of learning or any other feature of intelligence can in principle be so precisely

described that a machine can be made to simulate it.“

From: https://www.independent.co.uk/news/obituaries/john-mccarthy-computer-scientist-known-as-the-father-of-ai-6255307.html

• Artificial Intelligence is the simulation of human intelligence processes by machines, especially

computer systems. These processes include learning (the acquisition of information and rules

for using the information), reasoning (using rules to reach approximate or definite

conclusions) and self-correction. From: https://searchenterpriseai.techtarget.com/definition/AI-Artificial-Intelligence

STATISTICS/INFORMATION

• Artificial Intelligence [AI] is predicted to grow 48% in education between 2018-2022

(Meyer, 2019)

• Artificial Intelligence business strategy implementation has grown 270% over the last 4

years (Kelley, 2019)

• 71% of sales professionals are already using Artificial Intelligence at work (Levine, 2019)

• 40% of mortgage banks are using Artificial Intelligence (Wieczner, 2019)

• 41% of Americans support the advancement of Artificial Intelligence (Houser, 2019)

• World Economic Forum’s “Future of Jobs Report” predicts Artificial Intelligence will cut 75

million jobs, but also add 133 million jobs by 2022

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• By 2030, 70% of companies will use some type of AI (Smith, 2019)

• 60-70% of companies are choosing not to invest in AI (InsideBIGDATA, 2019)

• 20-30% are cautious about or not committed to using AI (InsideBIGDATA, 2019)

• KPMG uses AI to analyze and extract information from leases or investment agreements (Faggella,

2020)

• Deloitte’s artificial intelligence platform has saved (50% or more) time in revising legal contracts,

invoices, financial statements, and board meeting minutes (Faggella, 2020)

• EY reports AI can review about 70-80% of simple leases (Faggella, 2020)

• PwC “testing” GL.ai to analyze documents and reports in Canada, Germany, Sweden and UK

(Faggella, 2020)

COMPANIES LEADING AI DEVELOPMENT

United States

• Google

• Microsoft

• Amazon

• Facebook

• IBM

• Apple

China

• Baidu

• Alibaba

• Tencent

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ARTIFICIAL INTELLIGENCE –GENERAL BENEFITS

• Will elevate roles of knowledge workers

• Will change organizational structures to be more cross-functional

• Will allow data sharing and decisions to happen anytime, anyplace

• Will improve speed of decision making and information sharing

• Will be immersed in business strategy

• Will create efficiencies in production

ARTIFICIAL INTELLIGENCE IN FINANCE/BANKING

• Used by bankers to make mortgage decisions

• Frees up time for higher-thinking, more humanized tasks

• Maps risk assessments and determines bonus accruals

• Uses Chatbots for customer service and self-serve platforms

• Uses ROBO-advisors to replace some financial planners/advisors

• Determines: mortgage applications, loan application, credit card

applications, mutual fund applications

• Predicts likelihood of borrower default

(Swapna, M., 2018)

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ETHICAL ISSUES IN USING AI IN FINANCE

• Consumer privacy – will automation lead to “financial surveillance”

• Equity of treatment - all market segments

• Appeal system- can consumers appeal decisions

• Accuracy of decision making

• Transparency of where information “goes” that is collected

• Impact on consumer “buying” decisions (manipulation?)

• Responsibility (moral and legal) for ultimate AI decisions made

ARTIFICIAL INTELLIGENCE IN HUMAN RESOURCES

Is a huge time and money saver for corporations

Has already led to a 30% headcount reduction in Human

Resources departments

Performs repetitive tasks at a faster rate with less error

Takes care of employee scheduling

Assists with candidate screening in hiring process

Provides employees with job recommendationsThis Photo by Unknown Author is licensed under CC BY

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ETHICAL ISSUES IN AI AND HUMAN RESOURCES

• Difficulty in measuring employee performance without human

participation

• Small data sets (employee dismissals) contribute to inaccurate

conclusions

• Legal constraints require explanations of decisions, records of

discussions

• Employee “reactions” cannot be properly represented by algorithms

• Concerns over bias in hiring decisions

Pause for Polling

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ARTIFICIAL INTELLIGENCE IN MANAGEMENT

• Has biggest impact on middle-level management

• Replaces management overseeing staff and developing

reports

• Can assist in matching invoices to supplier contracts to

determine products or services not supplied

• Streamlines organizational structure because

information flows seamlessly – anyone can access data

any time and any place

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ETHICAL ISSUES IN USING AI IN MANAGEMENT

• Ownership of “mistakes”

• Illusion of “control”

• Job loss

• Social responsibility to local and world economies

• Profit vs. triple-bottom-line

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ARTIFICIAL INTELLIGENCE IN MANUFACTURING

• Helps build and design things more

efficiently, saving production costs

• Uses Dreamcatcher to assist designers

• Uses “collaborative robots” to work on

assembly lines

• Monitors employees performing

dangerous tasks

• Help manufacturers develop hundreds of

thousands of strategies in

autonomous/electric vehicles (PwC)

• Challenges us to redesign work and

schedules

This Photo by Unknown Author is licensed under CC BY-SA-NC

ETHICAL ISSUES IN USING AI IN MANUFACTURING

• Roles of your future workforce

• Responsibility for updating skills of current workforce

• Short-term gain vs. long-term impact

• Legal liabilities for faulty products

• Explain-ability of AI decisions

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ARTIFICIAL INTELLIGENCE IN MARKETING/SALES

• Makes sales rep’s role more efficient

• Collects and analyzes large amounts of data

• Recommends, and predicts, buying

• Cuts down on routine sales inquiries (ChatBots)

• Use of “Seamless” and “Node” for building

contact lists and potential buyers, essentially

prospecting

This Photo by Unknown Author is licensed under CC BY-SA

ETHICAL ISSUES IN USING ARTIFICIAL INTELLIGENCE IN MARKETING

• May be used to replace soft skills of empathy in buying process that

could prove detrimental in long run

• May be a “turn-off” to some market segments

• Risk of bias in programming

• Interacts with social media, which can be problematic (Trending Store in

London)

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ARTIFICIAL INTELLIGENCE IN ACCOUNTING AND AUDITING

• Performs bookkeeping tasks (A/R, A/P, data

categorization)

• Expects to take over payroll, auditing, and tax remittance

• Uses “Smart Assistants” Bots to answer routine questions

(account balances, routine tax questions, latest

transactions)

• Detects anomalies /fraud

• Conducts full audits of all data versus samples

• Prepares audit-work papers

• Uses drones to conduct inventory during audits

This Photo by Unknown Author is licensed under CC BY-SA-NC

ETHICAL ISSUES IN USING ARTIFICIAL INTELLIGENCE IN ACCOUNTING /AUDITING

• Data privacy issues: who is sharing what with whom

• Autonomy of Artificial Intelligence/abdication of control

• Current Codes of Conduct in accounting do not consider the use of AI

• Loss of jobs

• Complexity of algorithms may “hide” reasons behind errors

(Munoko, Brown-Liburd, Vasarhelyi, 2020)

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ARTIFICIAL INTELLIGENCE AND INVESTING

AI can review millions of global trades for

regulatory compliance

Determines tax-efficient investing

Constructs personalized portfolios

Can predict investment risk and threats

Can research and compare data from current

and past transactions

Rebalances portfolios over time

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ETHICAL ISSUES IN USING AI IN INVESTING

• Transparency: ability to explain how AI is making investment decisions

necessity to inform client AI is being used in decisions

• Reliance: where is the human “tipping point” in oversight of decisions

• Fee construction: determining fees associated with AI integration

• Responsibility for “errors” in investing

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Pause for Polling

ARTIFICIAL INTELLIGENCE IN HEALTHCARE

• Helps read radiology scans

• Assists nurses, doctors and pharmacists in delivery of patient

care

• Revolutionizing drug R&D –accelerate development of

vaccines (Covid-19) and find connections among decades of

research

• Detects tumors, skin lesions, and eye conditions

• Flags high potassium levels via “bloodless blood test”

• Diagnoses, predicts, treats, and reverses diseases

This Photo by Unknown Author is licensed under CC BY-NC-ND

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ETHICAL ISSUES IN USING AI IN HEALTHCARE

• Loss of “compassion element”

• Transparency with patients

• Responsibility for mistakes in treatment/malpractice

• Usurp patient preference

• Safeguarding patient privacy and informed consent

• Can replace clinicians, such as nurses’ aides or registered dietitians

ARTIFICIAL INTELLIGENCE IN THE ARTS

• Written works

• Plays

• Poems

• Essays

• Art

• Music

From: https://www.youtube.com/watch?v=gT2D5_CTzb4

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FROM: HTTPS://WWW.YOUTUBE.COM/WATCH?V=WZ59D_GY2BM

ETHICAL ISSUES IN THE ARTS WITH ARTIFICIAL INTELLIGENCE

• Intellectual property rights

• Profit entitlements

• Definition of “creative works”

• “Mutation” of emotional and mental processing

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ARTIFICIAL INTELLIGENCE IN OTHER AREAS

• Personalizes learning experiences and grading papers

• Used by Google to help translate any language into yours

• Uses AlterEgo to communicate without speaking

• Assists umpires in baseball

• Developed the Epic Flash Driver in golf

• Programs wind turbines to produce more electricity

• Assists human capabilities via “brain chip”

• Provides companionship (Japan)

“LARGER” ETHICAL ISSUES IN ARTIFICIAL INTELLIGENCE

Definition of “human”

Definitions of “companionship” and “relationships”

Definition of “intellectual property”

Definition of “creation” and “death”

“Typing” of individuals

Effects on our mental and emotional processing

Effects of “machine economy”

Creation of another “species”

Incorporation into the military

Legal responsibility of harm

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STAHL’S (2010): “EMERGING INFORMATION AND COMMUNICATION TECHNOLOGIES” GUIDELINES FOR DETERMINING ETHICAL ISSUES

• First: Define the larger ethical issues in the emerging technology.

• Second: Explore your applications of the emerging technology and project ethical

implications of using the technology.

• Third: Evaluate - and rank - the ethical implications identified in second step, review and

critique oversight, and provide policy recommendations.

FOUR-PRINCIPLE APPROACH IN APPLIED ETHICS

• Autonomy

• Tell the truth, respect privacy, protect information, obtain consent

• Justice

• Provide services according to need and contributions, make decisions of fairness and

equity

• Beneficence

• Protect others’ rights, prevent conditions that will cause harm, help those in need

• Non-maleficence

• Prevent harm, suffering or offense in actions

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• Ensure programming Artificial Intelligence with humanity’s best interests

• Prevent potential bias in programming

• Determine intent: who is using Artificial Intelligence and for what reasons

• Ensure security measures behind algorithms

• Make decisions with end-result for humans

ETHICAL TOOLS AND PROCESSES

• Incorporate ethical expectations involving AI: codes of ethics,

hiring/selections, training and development, mission statements,

performance evaluations, reward systems

• Provide protection for reporting unethical issues related to AI

• Instill ethical issues on AI into strategic planning processes

• Determine “human” cost up front before buying into AI

(triple-bottom line approach- profit, people, planet)

• Have transparent communication with employees on AI implementation

• Sponsor cross-organizational discussions of ethics and AI

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Pause for Polling

RESEARCH: 36 HIGHER EDUCATION INSTITUTIONS

• 1 institution had undergraduate major in AI

• 1 institution had graduate major in AI

• 2 institutions had undergraduate minor OR concentration in AI

• 13 have undergraduate coursework in either AI or Machine Learning, or

both areas

• 4 have graduate work in AI or Machine Learning

• Several have courses in Management Information Systems

(may/may not include AI content)

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GENERAL COMMENTS ON RESEARCH RELATED TO BUSINESS MAJORS

• 36% of the investigated institutions offer some type of coursework in AI/Machine Learning

(13 of 36)

• Courses found were not housed in Business Management, Accounting, or Human Resources

majors

• Courses instead housed in Computer Science, Information Technology or Data Analytics

majors

RECOMMENDATIONS FOR EDUCATORS, INDUSTRY, AND PROFESSIONAL

ASSOCIATIONS

• Integrate artificial intelligence into all discipline areas

• Challenge students (and employees) to think about applied ethics in their chosen fields

• Require professional exams/certifications (CPA, CFE) have components on artificial

intelligence

• Partner with colleges and universities to research ethical issues in artificial intelligence

• Expand liberal arts hiring

• Create new majors and internship experiences to help prepare our future workforce

• Perform stakeholder analyses to determine artificial intelligence impact and ethical

issues that will result from use

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“THE RISE OF POWERFUL ARTIFICIAL INTELLIGENCE WILL EITHER BE THE BEST OR THE WORST THING EVER TO HAPPEN TO HUMANITY. WE DO NOT YET KNOW WHICH.”

STEPHEN HAWKING

This Photo by Unknown Author is licensed under CC BY-NC-ND

SELECT REFERENCES

• Kelley, K. (2019) An animated guide to creating an AI business strategy. Tech Target. Retrieved May 25, 2019, from

https://searchenterpriseai.techtarget.com/video/An-animated-guide-to-creating-an-AI-business-strategy?track=NL-

1816&ad=927267&src=927267&asrc=EM_NLN_112316905&utm_medium=EM&utm_source=NLN&utm_campaign=20190502_How

automation affects data scientists' roles; SAS Viya gets AI updates

• Houser, K. (2019, January 11). Just 41 percent of Americans support advancing AI. Futurism The Byte. Retrieved May 25, 2019, from

https://futurism.com/the-byte/ai-development-americans-support

• DeCarlo, S. How AI Is Shaking Up Banking and Wall Street. (2018.). Fortune. Retrieved May 28, 2019, from

http://fortune.com/2018/10/22/artificial-intelligence-ai-business-finance/

• Levine, B. (2019) InsideSales' new study: AI is 'becoming a way of life' for sales. Marketing Land. Retrieved May 25, 2019, from

https://marketingland.com/insidesales-new-study-ai-is-becoming-a-way-of-life-for-sales-256141

• Meyer, A. (2019, April 18). Artificial intelligence technology enhances educational experience. The Campanile. Retrieved May 25, 2019,

from https://thecampanile.org/2019/05/04/artificial-intelligence-technology-enhances-educational-experience/

• Smith, G. (2019). Infographic: The AI economy. Retrieved August 16, 2019, from: http://anewdomain.net/infographic-the-ai-economy/

• What is AI (artificial intelligence)? - Definition from WhatIs.com. (n.d.). Retrieved May 18, 2019, from

https://searchenterpriseai.techtarget.com/definition/AI-Artificial-Intelligence

• Munoko, I., Brown-Liburd, H., Vasarhelyi, M. (2020, Jan. 8). The Ethical Implications of Using Artificial Intelligence in Auditing.

Journal of Business Ethics. PowerPoint slides. From: https://www.exploreaiethics.com/articles/the-ethical-implications-of-using-

artificial-intelligence-in-auditing/

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REFERENCES, CONTINUED:

• Swapna, M. (2018, Sept. 16). Ethics of Using AI in the Financial/Banking Industry. Data Driven Investor. From:

https://medium.com/datadriveninvestor/ethics-of-using-ai-in-the-financial-banking-industry-fa93203f6f25

• Bolden-Barrett, V. (2019, Sept. 19). Unreliability, ethical concerns remain barriers to AI use in HR. HR Dive. From:

https://www.hrdive.com/news/unreliability-ethical-concerns-remain-barriers-to-ai-use-in-hr/563139/

• Bourne, A. (n.d.) Three ethical considerations for manufacturers investing in artificial intelligence. Reliable Plant. From:

https://www.reliableplant.com/Read/31864/ai-ethical-manufacturing

• Levine, B. (2019, Jan.) InsideSales’ new study: AI is becoming a way of life for sales. Marketing Land. From:

https://marketingland.com/insidesales-new-study-ai-is-becoming-a-way-of-life-for-sales-256141

• Kardon, B. (2019, May 17). How AI is evolutionizing B2B Sales and Marketing. MTA Martech Advisor. From:

https://www.martechadvisor.com/articles/machine-learning-ai/how-ai-is-evolutionizing-b2b-sales-and-marketing/

• Thomas-Bryant, K. (2019, July). 5 Positive ways artificial intelligence will impact accountants. Sage Advice. From:

https://www.sage.com/en-us/blog/artificial-intelligence-will-impact-accountants/

• Graf, M. (2020, Jan. 17). Artificial Intelligence as a Tool for investing. Data Driven Investor. From:

https://www.datadriveninvestor.com/2020/01/17/artificial-intelligence-as-a-tool-for-investing/

• Rigby, M. (2019, Feb.). Ethical dimensions of using artificial intelligence in health care. AMA Journal of Ethics. From:

https://journalofethics.ama-assn.org/article/ethical-dimensions-using-artificial-intelligence-health-care/2019-02

• Stahl, B., Goujon, P., Heersmink, R., Flick, C. (2010, Oct.) International Journal of Technoethics 1(4). DOI: 10.4018/jte.2010100102.

• InsideBIGDATA (2019, Aug. 11). Infographic: The AI Economy. From: https://insidebigdata.com/2019/08/11/infographic-the-ai-economy/

SUGGESTED READINGS:

• World Economic Forum article (2018, Sept.), “How Artificial Intelligence Is Shaking Up the Job

Market”

• National Bureau of Economic Research (2018, Jan.) working paper, “AI and Jobs: The Role of

Demand”

• Brookings Metropolitan Policy Program (2019, Jan.) report, “Automation and Artificial

Intelligence”

• McKinsey Global Institute (2018, Sept.) report, “ Notes From the AI Frontier: Modeling The

Impact of AI on the World Economy.”

• AI Now Institute (NY University) (2018, Dec.) report, “AI Now Report – 2018”

• Faggella, D. AI in the Accounting Big Four – Comparing Deloitte, PwC, KPMG, and EY –

(2020, Apr.) Emerj

• How Fast is Technology Growing – Can Moore’s Law Explain the Progress Still? From:

https://hostingtribunal.com/blog/how-fast-is-technology-growing/#gref

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THANK YOU FOR THE HONOR OF SPEAKING TO YOU TODAY

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