AI and the Creation of Knowledge Gaps: The ethics of AI transparency
31 Pages Posted: 18 Sep 2022 Last revised: 23 Feb 2024
Date Written: February 18, 2024
Abstract
Firms have obligations to stakeholders that do not disappear when managers adopt AI decision systems. We introduce the concept of the AI knowledge gap – where AI provides limited information about its operations while the stakeholder demands for information justifying firm decisions increase. We develop a framework of what firms must know about their AI model in the procurement process to ensure they understand how the model allows a firm to meet existing obligations including the anticipated risks of using the AI decision system, how to prevent foreseeable risks, and have a plan for resilience. We argue there are no conditions where it is ethical to unquestioningly adopt recommendations from a black box AI program within an organization. According to this argument, adequate comprehension and knowledge about an AI model is not a negotiable design feature but a strategic and moral requirement.
Suggested Citation: Suggested Citation