Author: N/A
Publisher: Cognizant
Publication Year: N/A
Summary: The following glossary entry defines and expands on the concept of data ethics. The entry defines data ethics as a branch of ethics that evaluates data practices—collecting, generating, analyzing and disseminating data, both structured and unstructured—that have the potential to adversely impact people and society. It includes addressing and recommending concepts of right and wrong conduct, with transparency in and defensibility of actions and decisions driven by automation and artificial intelligence (AI) in relation to data in general and personal data in particular.
With AI algorithms becoming more commonplace, and without regulated codes of ethics, businesses need to create and maintain a structured and transparent data ethics strategy, which can yield 3 important business benefits: 1). Trust (Businesses that apply the key ethics principles of fairness, privacy, transparency and accountability to their AI models and output can retain trust in how they use their data—and thus build greater goodwill and loyalty, which enhances their reputation and brand value); 2). Fair practices (Companies that adhere to data ethics principles and standards can demonstrate their fairness in decision-making); and 3). Data privacy compliance( Existing data privacy regulations like the General Data Protection Regulation [GDPR] and the California Consumer Privacy Act [CCPA] do not directly address ethics, but there is a significant overlap between key privacy requirements, such as lawfulness and accountability, and the principles of AI ethics). Thus, ensuring ethical AI helps ensure data privacy compliance.
This is important to consider as in the midst of a worldwide trust revolution, trillions of dollars are at risk; ethical behavior is the new theater for commercial competition. Business people have always had to consider ethical issues. But in these unforgiving times, getting data ethics wrong has greater consequences than ever before. The biggest threat to companies today comes not from the competition, but rather from their own inability to win and keep consumer trust. The increasing importance of data has changed not only how companies deliver products and services, but also how consumers make decisions. To build trust at every touchpoint throughout the customer journey, senior executives must ensure their companies have the right leadership, culture, organizational design, operating model, skills, technology and processes. Here are a few guidelines to win customers’ trust in the new digital world: 1). Ensure “gives” and “gets” (Where there are manageable “gives” and positive “gets” for consumers, sharing information is a no-brainer. Therefore, clear and open communication regarding give-to-get trade-offs are the foundation for creating the needed transparency that makes it worthwhile for both the company and its customers); 2). Give customers a delete button; and 3). Be quick to respond to failures (Winning organizations need to recognize, understand and proactively manage potential issues).