What are the risks of AI marketing?
Artificial Intelligence (AI) – the modern Prometheus, delivers promises of progress while also hinting at potential pitfalls. Like any new technology, AI is a double-edged sword, with both its edges sharply honed and not entirely understood. This post aims to shed light on the twin aspects of AI – the promising and the perilous. The Promising Facet of AI AI technologies are already making inroads into enhancing our lives – from revolutionizing shopping experiences to transforming healthcare. About 80% of business executives have started acknowledging moderate value from AI deployments in their companies. Although the adoption of AI in business is still nascent, the potential for progress is enormous. Projections by McKinsey Global Institute suggest that by 2030, AI could contribute an additional $13 trillion per year to global economic output. The Perilous Side of AI On the flip side, AI is also giving rise to unintended, sometimes severe, consequences. These effects include privacy violations, discrimination, accidents, and manipulation of political systems. More ominous are the potential disasters we’ve yet to fully comprehend, such as the risk of loss of human life from a flawed AI medical algorithm, or national security threats from AI-disseminated disinformation. Understanding the Risks and Their Drivers Despite being a novel force in business, AI brings with it a plethora of risks that leaders must acknowledge. These risks, rooted in data, technology, security, models, and human-machine interactions, can be detrimental to an organization, causing everything from reputational damage and revenue loss to regulatory backlash. AI Risk Management: The Need for a Multidisciplinary Approach With AI’s inherent risks, there’s a growing need for executives to develop a pattern-recognition approach towards AI risks and involve their entire organization in embracing both the power and responsibility that AI brings. Managing AI risks requires a multidisciplinary approach, calling for engagement across various organizational roles, from legal and risk to IT, security, and analytics. As we venture deeper into the AI era, understanding the associated risks is as vital as harnessing its potential. It’s high time that organizations, right from their C-suite to front-line managers, adapt to the changing landscape, incorporating comprehensive risk management strategies to navigate the double-edged sword that is AI.
