As the pace of change accelerates, embracing digital transformation becomes more vital. But without the right risk and trust framework, you can do more harm than good.
Without trust, business would face a daily struggle for survival. Trust is essential to commercial success and longevity, making loss of trust one of the biggest risks that any organization can face. Today, trust is more important than ever in a world that is increasingly being defined as uncertain and volatile, with sweeping technological advances and a rapid rate of change, all of which is impacting across geographic borders and across major industries.
We all know that technology can do some great things, and as emerging technology uses richer, deeper data to transform customer experience, it promises even greater things – the ability to understand our individual desires and preferences, anticipate and predict our movements and choices, and serve us in new and undreamt-of ways. Artificial intelligence, robotic process automation and the cloud are three emerging technologies that particularly excite executives because of their capacity to do all these things and completely transform organizations in the process. All three technologies also bring new and more complex risks that, if managed poorly, could lead to the erosion of trust.
What kinds of risks am I talking about? Well, at the recent Business Roundtable CEO Innovation Summit in Washington, DC in December 2018, I heard many business leaders talk about the potential risks associated with AI. AI is only as good as its teacher – its outcomes can be affected by poor training, bias and “bad data.” According to one piece of research, 85% of AI projects through 2020 will deliver erroneous outcomes due to bias in data, algorithms or development teams. This is in part driven by a major shortage of talent in the AI area – the need for these skills, in fact, dominated many of the conversations. This skills shortage is compounded by a related problem, which is how to reskill people who are in roles that will no longer require the same human input when RPA and AI are widely implemented.