How Safe is AI?

How Safe is AI?

Mike Canfield, Morgan Stanley’s Head of Europe Sustainability Research, discusses why ensuring safe and responsible artificial intelligence is essential to the AI revolution.


----- Transcript -----


Mike Canfield: Welcome to Thoughts on the Market. I'm Mike Canfield, Morgan Stanley's Europe, Middle East and Africa Head of Sustainability Research.

Today I'll discuss a critical issue on a hot topic: How safe is AI?

It's Thursday 10th of October at 2pm in London.

AI is transforming the way that we live, work, and connect. It's really got the potential at every level and aspect of society, from personal decisions to global security. But as these systems become ever more integrated into our critical functions – whether that's healthcare, transportation, finance, or even defense – we do need to develop and deploy safe AI that keeps pace with the velocity of technological advances.

Market leaders, academic think tanks, NGOs, industry bodies, intergovernmental organizations have all attempted to codify what safe or responsible AI should look like. But at the most fundamental level, the guidelines and standards we've seen so far share a number of clear similarities. Typically, they focus on fostering innovation in practical terms, as well as supporting economic prosperity – but also asserting the need for AI systems to respect fundamental human rights and values and to demonstrate trustworthiness.

So where are we now in terms of regulations around the world?

The EU's AI Act leads the way with its detailed risk-based approach. It really focuses on transparency as well as risks to people and fundamental rights. In the USA, while there's no comprehensive federal regulation or legislation, there are some federal laws that offer some sector specific guidance on AI applications. Things like the National Defense Authorization Act of 2019 and the National AI Initiative Act of 2020. Alongside those, President Biden's published an executive order on AI, promoting safety, responsible innovation, and supporting Americans and their rights, including things like privacy. In Asia Pacific, meanwhile, countries are working to establish their own guidelines on consumer protection, privacy, and transparency and accountability.

In general, it’s very clear that policymakers and regulators increasingly expect AI systems developers to adopt what we'd call the socio-technical approach, focused on the interaction between people and technology. Having examined numerous existing regulations and foundational standards from around the world, we think a successful policymaking approach requires the combination of four core conceptual pillars.

We've called them STEP. That's Safety, Transparency, and Ethics and Privacy. With these core considerations, AI can take a step – pun intended – in the right direction. Within safety, the focus is on reliability of systems, avoiding harm to people and society, and preventing misuse or subversion. Transparency includes a component of explainability and accountability; so, systems allowing for future feedback and audits of outcomes. Ethically, the avoidance of bias, preventing discrimination, inclusion, and the respect for the rule of law are key components. Then finally, privacy considerations include elements like data protection, safeguards during operation, and allowing users consent in data used for training.

Of course, policymakers contend with a variety of challenges in developing AI regulations. Issues like bias, like discrimination, implementing guardrails without stifling innovation, the sheer speed at which AI is evolving, legal responsibility, and much more beyond. At its most basic, though, arguably the most critical challenge of regulating AI systems is that the logic behind outcomes is often unknown, even to the creators of AI models, because these systems are intrinsically designed to learn.

Ultimately, ensuring safety and responsibility in the use of AI is an essential step before we can really tap into ways AI could positively impact society. Some of these exciting opportunities include things like improving education outcomes, smart electric grid management, enhanced medical diagnostics, precision agriculture, and biodiversity monitoring and protection efforts. AI clearly has enormous potential to accelerate drug development, to advance material science research, to boost manufacturing efficiency, improve weather forecasting, and even deliver better natural disaster predictions.

In many ways, we need guardrails around AI to maximize its potential growth.

Thanks for listening. If you enjoy the show, please do leave us a review wherever you listen and share Thoughts on the Market with a friend or colleague today.

Avsnitt(1505)

Andrew Sheets: Can Central Banks Keep Up with Market Expectations?

Andrew Sheets: Can Central Banks Keep Up with Market Expectations?

On today’s podcast, Chief Cross Asset Strategist Andrew Sheets looks at how the expectations markets are placing on central banks, as much as the actions of the banks themselves, are affecting outcomes.

9 Aug 20193min

Michael Zezas: The Potential Impact of Lasting Tariffs

Michael Zezas: The Potential Impact of Lasting Tariffs

On this episode, Head of Public Policy Research Michael Zezas walks investors through the current impasse on U.S.-China trade. How might new tariffs heighten downside risks for the U.S. economy?

7 Aug 20192min

Mike Wilson: Markets Face a “Sell the News” Moment

Mike Wilson: Markets Face a “Sell the News” Moment

On today’s podcast, Chief Investment Officer Mike Wilson asks whether the Fed rate cut and reemergence of trade tensions rattled markets or simply revealed the possibility of deteriorating fundamentals.

5 Aug 20193min

Andrew Sheets:  The Fed’s Great Expectations Quandary

Andrew Sheets: The Fed’s Great Expectations Quandary

On today's podcast, Markets met the Fed rate cut with a collective shrug. Could investor expectations make it harder for the Fed to succeed? Chief Cross-Asset Strategist Andrew Sheets provides analysis.

2 Aug 20193min

Michael Zezas: Trade Uncertainty and Corporate Confidence

Michael Zezas: Trade Uncertainty and Corporate Confidence

On today’s podcast, Head of U.S. Public Policy Michael Zezas examines how continued trade policy uncertainty is weighing on corporate confidence and spending. Is a turning point ahead?

31 Juli 20192min

Mike Wilson: Will the Fed Surprise on a Rate Cut?

Mike Wilson: Will the Fed Surprise on a Rate Cut?

On today’s podcast, Chief Investment Officer Mike Wilson gauges the reaction to a potential Wednesday Fed rate cut. Have markets already priced in any rally?

29 Juli 20193min

Special: Access & Opportunity Preview

Special: Access & Opportunity Preview

Morgan Stanley's Carla Harris talks with Charles Hudson, founder and Managing Partner at Precursor Ventures, a seed-stage investor bringing an institutional perspective to startups in the earliest stages of their development.

26 Juli 20194min

Michael Zezas: The Fed Rate Cut Debate for Bond Investors

Michael Zezas: The Fed Rate Cut Debate for Bond Investors

On today’s podcast, Head of Public Policy and Municipal Strategy Michael Zezas considers the debate between the consensus view of a potential 25 basis point Fed rate cut vs a 50 basis point cut.

24 Juli 20192min

Populärt inom Business & ekonomi

framgangspodden
badfluence
varvet
uppgang-och-fall
rss-borsens-finest
rss-jossan-nina
rss-svart-marknad
svd-ledarredaktionen
avanzapodden
lastbilspodden
rss-kort-lang-analyspodden-fran-di
rss-dagen-med-di
fill-or-kill
borsmorgon
tabberaset
24fragor
kapitalet-en-podd-om-ekonomi
rikatillsammans-om-privatekonomi-rikedom-i-livet
rss-en-rik-historia
rss-inga-dumma-fragor-om-pengar