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2023C1 #1 Looking Inside The Magical Black Box - A Systems Theory Guide To Managing AI
2023C1 #1 Looking Inside The Magical Black Box - A Systems Theory Guide To Managing AI
A
rtificial intelligence (AI) algorithms it is impossible to build a model that considers all
show tremendous potential in guiding possible variables leading to desirable outcomes.
decisions therefore, many enterprises have owever, a model can help decision makers by
implemented AI techniques. AI investments providing general guidance on what may happen in
reached approximately US$ 8 billion in 2020.1 The the future based on what has happened in the past.
problem is that there are many unknowns, and
percent of enterprises cannot explain how their AI AI algorithms either use predefined models or
tools work.2 Decision makers may be overly trusting create their own models to make predictions. This
the unknown components inside what is referred is the basis for categorizing AI algorithms as either
to as the AI magical black box and, therefore, may symbolic or statistical.8 Symbolic algorithms use
unintentionally expose their enterprises to ethical, a set of rules to transform data into a predicted
social and legal threats. outcome. The rules define the model, and the user
can easily understand the system by reviewing
Despite what many believe about this new technology the model. rom a systems theory perspective,
being objective and neutral, AI-based algorithms the inputs and processes are clearly defined. or
often merely repeat past practices and patterns. example, symbolic algorithms are used to develop
AI can simply automate the status quo. In fact, credit scores, where inputs are defined a priori
AI-based systems sometimes make problematic, and processes (calculations) are performed using
discriminatory or biased decisions4 because they
often replicate the problematic, discriminatory or
biased processes that were in place before AI was
FIGURE 1
Systems Theory
SIMONA AICH
Many disciplines have encouraged a systems theory
approach to studying phenomena. This approach Is an undergraduate student at Ludwigshafen University of Business and
states that inputs are introduced into a system Society (Ludwigshafen, Germany) in a cooperative study program with SAP
and processes convert these inputs into SE, a market leader for enterprise resource planning (ERP) software. She
outputs (fig re 1). has completed internships in various departments, including consulting and
development. er research interests include the impact of algorithms, a topic
An algorithm is defined as a standard procedure she plans to pursue in her master’s degree studies.
that involves a number of steps, which, if followed
GERALD F. BURCH | P .D.
correctly, can be relied upon to lead to the solution
of a particular kind of problem. AI algorithms use Is an assistant professor at the University of est lorida (Pensacola, lorida,
a defined model to transform inputs into outputs. USA). e teaches courses in information systems and business analytics at
British statistician George E. P. Box is credited both the graduate and undergraduate levels. is research has been published in
with saying All models are wrong, but some are the ISACA® Journal. e can be reached at gburch uwf.edu.
useful. 7 The point is that the world is complex, and
FIGURE 2
AI Black Box
Inputs
ꞏ Conduct correlation and moderation
studies of inputs and outputs.
ꞏ Be transparent about inputs.
ꞏ Identify and remove preexisting biases.
in an accident risk model. But enterprises should Investigating multiple models can also help identify
be transparent about their inputs to ensure that the technical bias. or example, gone are the days when
public is aware of what factors are considered in the weather forecasters relied on just one model. It is
decision-making process. Conducting correlation much more common now for spaghetti models to be
studies of the variables before introducing them used, giving an overview of what many models are
into the system may provide an early indication of predicting instead of relying on just one.
potential discrimination problems.
After an algorithm has been developed, user
Preexisting bias can also be introduced with inputs. acceptance testing (UAT) is an important step
This can be done by choosing to include potentially to ensure that the algorithm is truly doing what
discriminating inputs or by choosing other inputs that it was designed to do. UAT should examine all
may act as proxies for gender, age and ethnicity, such aspects of an algorithm and the code itself. 17 For
as choosing personal economic variables as inputs nondiscriminatory AI applications, it is important
due to socioeconomic relationships. Decision to consider justice as a target value and to provide
makers must know which inputs are being used by people disadvantaged by an AI-based decision with
the AI algorithms. the ability to enforce their rights.18
PAPA Model
These two ethical models show that enterprises
The PAPA model identifies four key issues to preserve should consider other outcome variables that can
human dignity in the information age determine the ethical implications of their decisions.
This should be done not only by the software
1. rivac —The amount of private information one
developers, but also by the stakeholders involved in
wants to share with others and the amount of
the algorithm.27 Decision makers should evaluate
information that is intended to stay private
each of the areas listed in fig re and determine
2. cc rac — ho is responsible for the correctness which additional outcome variables they should
of information collect and track to ensure that their AI algorithms are
3. ropert — ho owns different types of not negatively impacting ethical interests. The limited
information and the associated infrastructure views of one decision maker may be inadequate for
this task. One option is to assemble a diverse board AI algorithms can improve organizational performance
to evaluate these areas and make recommendations by better predicting future outcomes. owever, decision
about which outcomes to track. This may help makers are not absolved from understanding the inputs,
expose initially unidentified concerns that can be processes, outputs and outcomes of the decisions
incorporated into the AI algorithms’ redesign to made by AI. Taking a systems theory approach may
ensure that ethical issues are addressed.28 help enterprises ensure that the legal, ethical and social
aspects of AI algorithms are examined. Outcomes
based on AI algorithms must not be assumed to be rigid
and finite because society and technology are constantly
The prerequisites for an ethical changing. Similarly, ethical principles may change too.
AI algorithm are unbiased data, hen the environment for an algorithm changes, the
algorithm must be adapted, even if it requires going
explainable processes, unbiased beyond the original specifications.29
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