Microsoft defines Responsible AI as developing, assessing, and deploying AI systems in a safe, trustworthy, and ethical way.

It comes with a very detailed definition entailing several aspects with fairness, reliability, and transparency being the most prevalent ones due to the risks that AI poses given its nature.

From system purpose to how people interact with AI systems, responsible AI can help proactively guide these decisions towards more beneficial and equitable outcomes. That means keeping people and their goals at the center of system design decisions and respecting enduring values like fairness, reliability, and transparency.

The need for responsible AI is more pronounced now based on a report by CapGemini which finds that close to 60% of organisations have attracted legal scrutiny, and 22% have faced customer backlash in the last two to three years due to decisions reached by their respective AI systems.

Hence, the use of responsible AI is associated with governance of the systems and the decisions made by AI, the impact on society and for most industries - the implications to our environment.

The governance and impact to society using responsible AI is like those made for environment, society, and governance (ESG) reporting. Responsible AI and ESG share many similar risks and benefits and at the same time, AI can be used in many of the ESG initiatives, such as increasing transparency, incorporating fairness, and improving explainability.

ESG reporting and disclosure become more relevant as more investors turn to sustainability index. In this aspect, AI can be used for ESG reporting purposes, such as for carbon footprint under the environment element, the product quality and safety and labour practices under the social element, and the business ethics under the governance element.

It is also not surprising that the use of AI in these instances may expose either discriminatory or irregular practices within the company, and thus push AI to the sidelines. Even when companies begin to consider AI into their business strategies, planning and implementation, there are many stumbling blocks.

There is, however, no escaping AI, as seen by the quick and widespread rise of ChatGPT. It is not a matter of if but when, and to which extent, will AI be part of an organisation. Resources such as technology, the hiring and equipping of employees with very specific and specialised skills will be vital, as responsible AI can assist in achieving the goals of the company to be more sustainable in its operations, including in its ESG reporting. That being said, companies should also be open to cross collaboration with external parties such as educational institutions and non-governmental agencies to increase engagement and awareness of responsible AI.

This not only exposes society to responsible AI, but also helps them understand its growing importance. However, in some areas like marketing and sales, it is vital to note that consumers are still individuals who may desire human touch.

While companies may be reducing the number of employees in the backend support, the front-end employees still play a distinct role in the consumer touchpoints. The “feeling” aspect of AI may be replicated, however, it is not anytime soon.

The success factors of Responsible AI would be measured based on the level and quality of its resources, application of AI in different business areas, and in meeting sustainability goals such as ESG ratings in the relevant materiality. These should form the benchmark for all companies as we move to be highly sustainable and digital.

There is much to learn, relearn and apply when it comes to responsible AI. It is boundless and may seem daunting, but small and minor incremental actions can be taken by companies of any size to use AI responsibly in order to portray a fair, transparent, and ethical application of AI – one that benefits its stakeholders.

Dr Sarabjit Kaur is a senior lecturer in the School of Management & Marketing, Faculty of Business and Law, at Taylor’s University. Dr Sarabjit is also part of AI hub in Taylor’s University Impact Lab on Digital Innovation and Smart Society. Taylor's Business School is the leading private business school in Malaysia and Southeast Asia for Business and Management Studies based on the 2022 QS World University Rankings by Subject.