AI and the Creation of Knowledge Gaps: The ethics of AI transparency

31 Pages Posted: 18 Sep 2022 Last revised: 23 Feb 2024

See all articles by Kirsten Martin

Kirsten Martin

University of Notre Dame

Bidhan Parmar

University of Virginia - Darden School of Business

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

Martin, Kirsten and Parmar, Bidhan, AI and the Creation of Knowledge Gaps: The ethics of AI transparency (February 18, 2024). Available at SSRN: https://ssrn.com/abstract=4207128 or http://dx.doi.org/10.2139/ssrn.4207128

Kirsten Martin (Contact Author)

University of Notre Dame ( email )

364 Mendoza
South Bend, IN 46530
United States

Bidhan Parmar

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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