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AI Essentials For Business - Module 3 Lesson 2 - Ethics of Digital Scale Scope and Learning

The document discusses the ethics of digital scale, scope, and learning in the context of AI-first firms and their responsibilities. It highlights issues such as algorithmic bias, cybersecurity threats, and the need for increased regulation in tech firms. Additionally, it emphasizes the importance of privacy and inclusiveness in digital operating models.

Uploaded by

Laila Rougaibi
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© © All Rights Reserved
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10 views34 pages

AI Essentials For Business - Module 3 Lesson 2 - Ethics of Digital Scale Scope and Learning

The document discusses the ethics of digital scale, scope, and learning in the context of AI-first firms and their responsibilities. It highlights issues such as algorithmic bias, cybersecurity threats, and the need for increased regulation in tech firms. Additionally, it emphasizes the importance of privacy and inclusiveness in digital operating models.

Uploaded by

Laila Rougaibi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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HARVARD BUSINESS SCHOOL

COMPETING IN THE AGE OF AI PROGRAM

Ethics of Digital
Scale, Scope, and Learning
Part 1
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

AI-First Firms Can Deliver at Scale across


Different verticals with Near-Zero Marginal Cost
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

The AI Factory Feeds Data and Models Systematically


into the Software-enabled Operating Core of the Firm
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Digital Operating Models


Are Creating New Responsibilities

The new ethics of digital scale, scope, and learning

Tens of thousands of apps Are the algorithms running


suspended by Facebook after your life biased?
Cambridge Analytica investigation

Is more regulation needed in tech


firms?
Each big tech
company may be
targeted by
regulators
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Ethics of Digital
Scale, Scope, and Learning
Part 2
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Digital Operating Models


Are Creating New Responsibilities

The new ethics of digital scale, scope, and learning

Tens of thousands of apps


suspended by Facebook after
Cambridge Analytica investigation

Is more regulation needed in tech Are the algorithms running


firms? your life biased?

Each big tech company


may be targeted by
regulators
Digital amplification Algorithmic bias Cybersecurity

Privacy Inclusiveness
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Digital Amplification
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Echo Chambers

Graph shows democratic-leaning and republican-leaning internet posts and reposts; the few
dots in the middle show examples of reposts across the political divide.

Recreated by Liette Ocker based on image and information from: Kiran Garimella, Gianmarco De Francisci
Morales, Aristides Gionis, and Michael Mathioudakis. Reducing opposing views to reduce controversy.
Proceedings of the 10th ACM International Conference on Web Search and Data Mining, 2017.
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Algorithmic Bias
Introduction
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Algorithmic Bias Example


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

What Causes Algorithmic Biases?


• Amazon scraps Input resume data
from engineers
secret AI recruiting
tool that showed Trained the models on a
male-dominated dataset
bias against women
• What happened?
Algorithm penalizes
female-specific words
such as “woman’s chess
club captain”

Ocker Consulting, LLC


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Apple Card

Ocker Consulting, LLC


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

The Sources and Impact of Bias


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Bias
Algorithmic Justice League Chart
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Bias (and Fairness)


• Independence: requires that the score an algorithm produces
should be equally accurate for members of different groups—ethnic
groups, for example
• Balance: requires that the algorithm produce the same percentage
of false positives or false negatives for each of the groups at issue;
unfortunately, there is often no way to achieve parity in both these
dimensions
Adapted from Lisa Balboa blog

Sources of bias
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Cybersecurity
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Cybersecurity
Cybercrime to cost the world $10.5 trillion annually by 2025

Recreated by Liette Ocker based on AFP image and information from BusinessInsider.com
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Cybersecurity (cont.)
FBI Internet Crime Complaint Center (IC3) 2019 annual report
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Privacy
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Privacy
• Privacy and cybersecurity becoming more integrated
• More countries and U.S. states will introduce new data
protection laws
• Privacy becoming much greater focus in board-level
discussions
• More companies moving to enterprise-wide privacy
strategy
• Emergence of privacy technologies
(e.g., differential privacy), but shortage of experts
• Privacy becoming a business differentiator
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Differential Privacy
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Differential Privacy
• Anonymizing data is not enough to protect personal information.
• With differential privacy, the goal is to give everyone roughly the same
privacy that would result from having their data removed (without removing
the data), for a given number of hostile queries. We want to gain some
utility from our database, without exposing any sensitive data to a possible
adversary.

This is done by adding noise to the dataset until we achieve the desired privacy guarantee.
Adapted from https://georgianpartners.shinyapps.io/interactive_counting/
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Inclusiveness
HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Inclusiveness

Keystone Strategy, LLC


HARVARD BUSINESS SCHOOL
COMPETING IN THE AGE OF AI PROGRAM

Harvard Business Analytics


Program
COMPETING IN THE AGE OF AI PROGRAM

HARVARD BUSINESS SCHOOL

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