5 AI Predictions for 2023: The Year of AI Governance to deliver on the promise of Responsible AI
2022 was a pivotal year for democratizing Artificial Intelligence. With DALL·E and Stable Diffusion continuously making the headlines for Generative AI and the recent TikTok trend that had over 30 million views and thousands of users creating their own realist AI portraits: it is clear that world-changing AI isn't something restricted to PowerPoint slides—it's real, it's here, and it's already shaping the future in unimaginable ways.
The growth of AI has been remarkable. From a nice-to-have in business to becoming a critical strategic endeavor, AI has made its way into the systems of thousands of companies and the lives of millions of consumers worldwide. Cancer screening, social media recommendations, and even credit risk scoring—just to name a few—are examples of how deep-rooted these systems are in our society.
Nevertheless, as AI becomes ever more pervasive in our world, pop culture's saying resounds more accurately than ever: "With great power comes great responsibility."
Yes, for Artificial Intelligence as well.
As we consider the impact AI can have on the economy, the increasing number of AI regulations being implemented, and the growing public demand for fair and equitable AI systems, we predict that 2023 will be the year of AI Governance to deliver on the promise of Responsible AI. In this blog post, we'll cover some of the significant ways Responsible AI will evolve over the next year, what 2023 is going to look like in bringing meaningful action to Responsible AI and how businesses can take advantage of them now to stay ahead of the curve. Here are our thoughts.
1. 📈Legal and regulatory pressures will continue to increase, with a heightened focus on fairness and bias.
As Artificial Intelligence moves from an emerging technology to a mainstream one, many regulators have already started to establish guardrails and recommendations for the best use of data and AI with regulations. In 2023, we predict that even more significant, smarter, and sector-specific AI regulations will be published and implemented. More specifically, we expect to see an urgent focus from regulators in tackling fairness issues in high-risk areas like hiring, underwriting, healthcare, and biometrics.
All around, the increasing socio-technical challenges of AI have resulted in deeper scrutiny from lawmakers, regulators, and civil society to ensure that algorithms do not perpetuate or amplify existing inequalities and are aligned with human values. The EU AI Act, AI Bill of Rights, New York City Local Law 144, and other global, local, and federal laws are just a few of the leading examples of the need for compliance to ensure responsible and equitable use of these algorithmic systems.
In response to this rising pressure, the private sector will begin promoting more public-private collaboration—between companies involved in building these technologies with those who regulate them—to ensure that the benefits of AI are distributed fairly and used to create positive social and economic outcomes.
2. 📝 Self-assessment governance artifacts will become a priority for building trust in the private and public sectors and will provide a foundation for future standardized AI Audits.
As we move into a new era of Responsible AI, companies and governments alike will have to be prepared to embrace more transparency. For this endeavor, we predict 2023 will be the year of self-assessments and internal AI reviews (currently positioned in the market as AI audits), where organizations will measure, manage and monitor their AI system for overall risks stemming from fairness, transparency, safety & security, privacy, and accountability.
We will start seeing action in the boardroom, where the C-suite will begin to report Responsible AI practices and progress based on the self-assessments to provide broader visibility across internal stakeholders while also preparing for compliance with regulations. Companies and governments will invest heavily in self-assessments of their AI—built in-house or procured from a third party. In addition, the artifacts of AI governance, like transparency reports, will start to emerge as a standard to build trust with their stakeholders and the basis for future standardized AI audits.
3. 🤖 Generative AI Governance will become an emerging area of discussion in the AI industry.
Generative AI—systems that use pre-existing content like text, audio, or video to create new content in response to a query—are already some of the most versatile and accessible tools in the world, and that's just the tip of the iceberg. As Forrester predicts, 10% of Fortune 500 companies will use generative AI tools within five years.
From a Responsible AI perspective, there are numerous risks Generative AI systems can bring to society: including bias, privacy violations, and IP infringement, as well as promoting misinformation, disinformation, and harm—all of which present new challenges for governance but also provide an opportunity for learning how best to govern complex technology systems.
In 2023, we predict that Generative AI will continue to grow across industries, as will the risks associated with these systems. There will be increasing debates around the transparency of Generative Systems with labels of Made by AI, Made by humans, Human+AI, but the actual governance to safeguard these technologies will not yet be implemented, just increasingly discussed.
To read more about Generative AI, please refer to our blog post AI Governance in the time of Generative AI.
4. ⚡️Increased investment in AI governance tools will drive meaningful progress and clarity in the now fuzzy responsible AI ecosystem.
The rapid expansion of the Responsible AI industry has resulted in a somewhat complex ecosystem with a range of terminologies and products. This has made it more challenging for businesses and organizations to navigate the ethical and responsible use of these technologies in an already complex industry.
In 2023, as the field of Responsible AI continues to grow with increased investment, we should expect to see a clearer distinction between software and services within this ecosystem. Moreso, to help ensure that AI Systems align with ethical guidelines and operate in a transparent and accountable manner, AI Governance software will emerge as a leading mechanism to provide oversight for MLOps and bring in the business context, including from GRC (Governance, Risk, and Compliance) functions. Consequently, AI Governance will become critical to bridging the gap between MLOps and GRC.
Clarity will be essential for businesses and organizations as they navigate the complex landscape of AI to ensure they are able to effectively use these technologies while also maintaining ethical and responsible practices. The emergence of AI Governance software like Credo AI is a positive step that will help to promote the responsible and effective use of AI, as well as provide oversight and governance for Machine Learning applications aligned with human values.
To read more about MLOps vs. AI Governance, please refer to our blog post, Better Together: The difference between MLOps & AI Governance and why you need both to deliver on Responsible AI.
5. 🔎 Responsible AI will support the standardization of ESG and transparency reporting for investors
ESG is at the top of investors' agenda. However, although ESG seems increasingly significant in today's industry, we still don't have an ESG mechanism for standardized reporting. As a result, companies often share their selected metrics, which may portray an inaccurate representation of reality. We are also finding that more organizations connect AI Governance to the “G” in ESG because of the increasing societal and economic impact of AI.
In 2023, we predict that increased regulatory oversight coupled with demands for higher organizational accountability from the public will accelerate the standardization of transparency reporting and help ensure transparency and trust with stakeholders—a key focus of my congressional testimony on Trustworthy AI. Standardized AI transparency reporting and disclosures will improve green line and financial performance for organizations that commit to making Responsible AI core to ESG goals.
As AI adoption continues to expand, it is critical that we prioritize the responsible development and use of this technology. In 2022, we’ve seen an increasing awareness of AI risks among consumers and society, resulting in a demand for greater accountability from companies in terms of Responsible AI practices. In 2023, we should expect to see a rise in investment in AI Governance to ensure the ethical use of data and responsible development of AI, as well as a rise in organizations establishing governance into their AI’s lifecycle—including addressing brand issues, regulatory compliance, and financial risks. By prioritizing privacy, fairness, transparency, and equity in their AI systems, businesses should expect to augment customer trust, accelerate innovation, and differentiate themselves in the market.
We are confident that by taking steps now to ensure their AI systems are designed responsibly, organizations will not only improve their brand value but also benefit all of humanity by developing fair and equitable systems.
The year of Responsible AI Governance is already upon us.
2023, here we come! 🚀
If you’re interested in learning more, please reach out to email@example.com.
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