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Why Invest in AI Ethics?

Ethics and artificial intelligence is attracting increasing attention as a topic. The enormous growth in AI applications is, of course, an important reason for this. But why should a company integrate ethics into its business strategy? Is investing in ethics really worthwhile?

First, investing in ethics represents a further application and possible extension of corporate social responsibility.

Second, it is important to consider the return on investment. Although the ROI of ethics is difficult to measure, there are clear indications that ethical practices can positively affect business performance.

In a recent study, Boston Consulting Group identified three ways in which responsible AI can influence ROI:

a. Market share and long-term profitability

Companies that attach importance to responsible AI — and communicate this commitment clearly to their customers — have the potential to increase both their market share and their long-term profitability.

b. Brand differentiation

A focus on responsible AI can also help distinguish a company’s brand. Companies are increasingly emphasising their commitment to their mission and to the principles on which their organisation is founded.

Customers, in turn, are increasingly choosing to engage with companies that represent values they themselves consider important. BCG refers to this broader contribution as a company’s total societal impact.

c. Attracting digital talent

Companies that remain true to their principles are also better positioned to attract highly skilled digital talent.