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Reed, welcome to The Road to Accountable
AI.

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Thanks for having me.

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Tell me a little bit about how you got
into this field of AI ethics, because

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relatively speaking, you've been doing it
for quite some time.

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That's good.

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Relatively speaking, I've been doing it
forever.

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Yeah, I mean, there's sort of a grander
story, I suppose, but to sort of keep it

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brief, I was a philosophy professor
specializing in ethics.

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I had the idea for an ethics consulting
company many, many years ago.

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I didn't see any kind of market for it.

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Fast forward, I heard some things.

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I thought, okay, maybe there's a market
for this actually.

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And so I left academia and I started an
ethics consulting company.

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with the intention of making it focus on
emerging technologies and perhaps AI in

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particular.

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I didn't know how quickly the AI space
would grow.

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Thankfully, it grew quite quickly.

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And so I started advising and consulting
on how to do AI responsibly, ethically, at

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least not negligently.

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That's the goal here.

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What does the academic training philosophy
bring you in this kind of applied field?

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Well, before people called it responsible
AI, they called it AI ethics.

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We're talking about the ethical
implications of AI, ethical, reputational,

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regulatory, and legal risks.

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If you want to know something about AI
ethics, you better know something about

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AI, and you better know something about
ethics.

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And I know a bunch about ethics.

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That's what the PhD and the 10 years of
being a professor and the whatever it was,

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15 plus years of academic research and
publishing do.

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So when people make certain kinds of
claims about responsible AI or AI ethics,

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frankly, a lot of times they just don't
have a good grip on the ethics of things.

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And so they say things that are false,
misleading will lead them down wrong

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paths.

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And so having that kind of experience,
understanding, frankly, expertise under my

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belt means that I can navigate the
conversation really well.

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I'll give you one quick story to sort of
put some meat on the bones of that.

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When I very, when I was really just early
transitioning from academic life to my own

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company, I joined IEEE, that's the
standardizing organization for engineers.

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because they were working on this project
called Ethically Aligned Design.

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And it was about how do we align, what do
they call it?

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Autonomous and intelligent systems with
our human values or something along those

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lines.

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And I got myself onto this committee that
was in charge of figuring out what are the

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guidelines or what's the advice around
research and design of AI from an ethics

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perspective.

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And I got on the first call and I was
anticipating not being able to say

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anything because I thought these are a
bunch of engineers.

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They, I don't know.

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I don't really know anything about AI.

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I'm not an engineer.

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I'm not a computer scientist.

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I'm not a mathematician.

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I'm an ethicist.

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So I expected it to be a sort of meeting
in which I just sat back and listened to

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the experts.

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What I learned within the first few
minutes is, oh, this isn't some advanced

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engineering discussion.

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This is first semester, first year
students talking about ethics.

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They don't know anything.

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They're engineers.

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And...

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What wound up happening to my sort of
amazement is I wound up essentially

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leading the entire conversation, just
leading because they were just saying

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things that, you know, my first year,
first semester undergraduates used to say

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about ethics and they were just
fundamentally confused.

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And so I went in there and I sort of led
the conversation and had to clear up a

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number of confusions, answer a bunch of
questions, direct the discussion in way

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that would actually be fruitful.

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And so it turns out that it's really the
ethics expertise that's more useful than

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the AI expertise in a lot of these
conversations.

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Well, you know, not necessarily from that
specific example, but what are some

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misunderstandings that people tend to have
if they don't have some real background?

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Well, one would explain, I think, the
transition from talking about AI ethics as

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was the standard to talking about
responsible AI as has become the standard

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among corporations.

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They just don't know what the heck to do
with ethics.

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The number one misconception, which I
opened my book, Ethical Machines, with

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this is they just think it's squishy, it's
subjective, it's just a matter of opinion,

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it's how you feel about stuff.

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And if you think of ethics as just how you
feel about stuff, you know, I like

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chocolate, you prefer vanilla.

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I like genocide, you prefer peace.

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If we think of it along those ways, then
of course you're not going to get your way

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to actionable steps to identifying and
mitigating the risks.

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So unless you think about ethics as
something that's more just touchy -feely

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stuff, you're not going to actually get
your way to designing a framework,

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designing policy, designing procedures,
designing metrics, designing training.

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Otherwise you just tell everyone to
consult how they feel about stuff.

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That's not, that's silly.

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And so,

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Getting rid of that misconception,
articulating that ethics is or at least

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can be conceived of as being perfectly
objective, and that there are ways of

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doing ethical inquiry that are responsible
versus irresponsible, that there are ways

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of articulating it in concrete ways that
lead to action, that's a phenomenally

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useful perspective that most people simply
don't have.

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Let me just play devil's advocate a little
bit more, though.

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People talk about responsible AI, but
nowadays people also talk about things

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like AI governance or AI risk management
or AI safety, which are all terms that

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don't necessarily have that kind of
ethical loading.

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Do you think that's misguided?

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Should we still be talking about ethics or
are these different things?

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So I've argued, this is a point I make in
my book, that we shouldn't use the term

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responsible AI, that the term responsible
AI is a term that was invented by

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corporates essentially, so they don't have
to say the word ethics because they don't

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want to deal with it.

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Incidentally, this is in line with some
advice that I got early on when I was

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still a professor.

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I was talking to an executive at Starbucks
and she said, not unreasonably, you might

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not want to say that you're doing ethics
consulting.

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People don't like the word ethics.

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They don't get it.

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And I said, no, no, I'm just going to own
the word ethics then.

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If that's the answer, I'm just going to
own the word ethics.

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And I changed it incidentally to ethical
risk because I thought risk was a language

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that businesses understand.

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Now, look, there's no principled reason to
oppose the term responsible AI.

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It's not as though that's completely
bonkers from a ethical or a conceptual

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perspective.

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That's reasonable.

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I think though, this has been my
experience that...

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What happens when people use the term
responsible AI in practice is that they

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throw in ethics -y stuff into the
responsible AI bucket, but then they throw

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a bunch of other stuff in as well.

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So they'll say, yes, responsible AI is
ethics and safety and regulatory

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compliance and engineering excellence and
cybersecurity.

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It's just all the stuff.

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And then what happens is they say, okay,
now let's address the responsible AI

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bucket.

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And then the experts in the room are
experts on things like...

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engineering excellence and cyber security
and regulatory compliance.

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And so what do they do?

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They prioritize all of those things to the
exclusion of talking about the ethics

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stuff.

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And so I think that they miss out on huge
swaths of risk because they've decided

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let's just, you know, we're focused on
responsibility now and these things within

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those buckets.

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And so I think again, while in principle
there's nothing wrong with it,

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pragmatically or in practice, what happens
is that ethical risks get pushed to the

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sidelines.

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Yeah, it's fascinating.

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I mean, I'm a professor of legal studies
and business ethics, and we have for a

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long time had a lot of the same
conversations more broadly in terms of,

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you know, what does it mean?

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How should we talk about it?

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You know, what's more effective
practically in terms of getting businesses

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to change their behaviors?

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Do you think these conversations that
we're having about AI are really just a

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microcosm of the larger issues for
business?

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Or are there some things about AI that are
really distinctive in these discussions?

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Probably a little bit of both.

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You know, I think that...

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Sorry, just a quick...

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I'm getting some feedback.

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I can hear myself a little bit.

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Is it coming out of your speaker and back
into your microphone?

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I could put my earbuds in.

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Yeah, I'm not hearing anything, but.

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Yeah, it's probably on my hand.

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OK.

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It's coming out of me.

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Yes, it might be.

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Let me just.

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this connects up with the headphones.

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But yeah.

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Can you say something?

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Sorry.

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Okay, yeah, now I'm hearing you in the
earbuds.

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Okay.

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Okay.

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Let's let's try that.

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So now, now I can hear you in the earbuds.

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Hopefully that'll.

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All right.

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I can't even see your earbuds.

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That's good.

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I guess I can see them barely, but if I'm,
if I'm really looking.

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So, okay.

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So let's say you asked the question and
obviously this look at edit out, you asked

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the question, is this sort of microcosm
for ethics and business or is there

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something special about AI?

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Yep.

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Um, so it's a little bit of both.

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I think that one reason why the ethical
risks of AI are much discussed is because

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it's of the nature of the beast that is
AI.

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machine learning that certain kinds of
risks are quite likely to be realized

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despite the best intentions in some cases
of the people designing the AI.

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So we get things like biased AI and black
box AI, we get privacy violations and

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those kinds of ethical breaches are not
usually the result of bad actors, of bad

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apples.

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And so since we've got this powerful new
tool, people want to use it for innovation

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to drive revenue, to drive internal
efficiency, et cetera.

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But it comes with these associated risks.

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We naturally get this kind of conversation
around risks.

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I also think that there's probably some
contingent story to be told about why

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people are paying particular attention to
this technology in ways that people don't

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pay attention to ethical breaches by
corporations more generally in a way.

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So perhaps there's some story to be told
about how the people in the technological

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space, they tend to be younger, they tend
to be more activist -y.

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And so you get the overlapping diagram of
being a technologist and being sort of

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activist -y, social media active, social
justice warrior.

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And since you get that overlap of the
diagram, you get as a matter of sort of

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historical contingent fact, lots of
attention on the ethical impacts of AI.

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Yeah, it's interesting.

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And obviously we've seen a lot of
evolution in terms of adoption of AI and

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awareness of AI in the last several years.

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Have the kinds of questions that companies
ask you or the things that they bring you

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in for changed?

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I wouldn't say that they've changed
radically.

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I think that the frequency with which the
conversations are had, the frequency with

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which people want help with this sort of
thing has increased over the years.

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There are certain kinds of risks that have
popped up very high on the radar as of

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late, specifically since ChatGPT came out.

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Very much increased concerns around
cybersecurity or the security integrity of

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their data.

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That's been a major issue, of course.

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And then, of course, the hallucination
issue that ChatGPT or other models will

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output just false.

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false statements.

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So I think, you know, if I said, you know,
what are the big risks that have come out

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lately?

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It'd be the cyber risks and the
hallucination risks.

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The bias risks that are associated with
generative AI, those have been around

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since we've been talking about AI ethics
at all.

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So that's not really new, but it's perhaps
exacerbated or, or especially now that it

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comes in visual form, it's captured the
imagination of people a bit more, but

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nothing has fundamentally changed.

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I don't think it's just awareness has
grown.

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It's just that awareness has grown.

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So in terms of generative AI, you
mentioned the hallucination potential.

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How should we think about that from an
ethics standpoint?

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You're on mute now, it looks like.

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Sorry, I muted myself by accident.

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Not about.

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The hallucination problem is not
tremendously, no, I was thinking something

235
00:12:00,788 --> 00:12:01,494
else.

236
00:12:03,950 --> 00:12:08,170
The hallucination problem is a problem
both for the technologists and for

237
00:12:08,170 --> 00:12:09,130
ethicists.

238
00:12:09,130 --> 00:12:11,750
So, one, everyone wants accurate AI.

239
00:12:11,750 --> 00:12:14,670
Nobody wants things that are said that are
false.

240
00:12:14,670 --> 00:12:16,410
That makes it useless.

241
00:12:16,410 --> 00:12:18,690
So, one, there's just a sort straight -up
technical problem.

242
00:12:18,690 --> 00:12:23,970
It only veers into the lane of the
ethicist when it's giving outputs that are

243
00:12:23,970 --> 00:12:27,120
ethically significant or can have an
impact on, say, the livelihood of people.

244
00:12:27,120 --> 00:12:31,110
So, if it's hallucinating about where you
should put your money, let's say it's

245
00:12:31,110 --> 00:12:33,070
acting as a financial advisor,

246
00:12:33,070 --> 00:12:36,720
or it's hallucinating about what the
appropriate diagnosis is, or it's

247
00:12:36,720 --> 00:12:39,370
hallucinating about whether you can
combine these two kinds of drugs when

248
00:12:39,370 --> 00:12:43,230
you're asking about your prescriptions or
something along those lines, then the

249
00:12:43,230 --> 00:12:44,830
ethical impacts are serious.

250
00:12:44,830 --> 00:12:48,430
So there's a way in which, you know, I
think about the ethics of hallucinations,

251
00:12:48,430 --> 00:12:52,530
I think I think this, as something akin to
the ethics of bridge building.

252
00:12:52,550 --> 00:12:56,780
You know, when you build a bridge, you
don't want the thing to fall apart,

253
00:12:56,780 --> 00:12:58,570
otherwise it would be a useless bridge.

254
00:12:58,610 --> 00:13:01,902
Of course, if it falls apart, if the
technical aspects are all out of whack,

255
00:13:01,902 --> 00:13:05,432
then so too will the ethical impacts be
out of whack, because then people will be

256
00:13:05,432 --> 00:13:06,712
on the bridge and it'll collapse and
they'll die.

257
00:13:06,712 --> 00:13:07,982
So that's really ethically bad.

258
00:13:07,982 --> 00:13:09,222
But it's really fine.

259
00:13:09,222 --> 00:13:14,852
It's not, if you like an ethical problem
as such to solve, it's more like there's

260
00:13:14,852 --> 00:13:20,562
these quasi -technical problems like
outputting false information that has or

261
00:13:20,562 --> 00:13:22,638
can have serious ethical impacts.

262
00:13:23,770 --> 00:13:27,120
But there are these questions with
generative AI about what's the appropriate

263
00:13:27,120 --> 00:13:34,710
response, what might be toxic or improper,
culturally insensitive, or biased in ways

264
00:13:34,710 --> 00:13:36,940
where reasonable minds can differ.

265
00:13:36,940 --> 00:13:42,180
So if a company brings you in to figure
those things out, how would you advise

266
00:13:42,180 --> 00:13:42,760
them?

267
00:13:43,374 --> 00:13:44,904
So there's a couple of things to say here.

268
00:13:44,904 --> 00:13:50,614
I mean, the first thing to say is that
usually my company, myself, my company is

269
00:13:50,614 --> 00:13:55,024
not brought in at that really granular
level of we've got this particular model

270
00:13:55,024 --> 00:13:56,624
for this particular use case.

271
00:13:56,624 --> 00:14:00,254
And we want to know what are the standards
that should govern this particular model

272
00:14:00,254 --> 00:14:00,944
that happens.

273
00:14:00,944 --> 00:14:04,734
Sometimes it's starting to come up a
little bit more precisely because of

274
00:14:04,734 --> 00:14:07,344
particular applications of LLMs for
exactly the reasons that you've just

275
00:14:07,344 --> 00:14:08,094
stated.

276
00:14:08,094 --> 00:14:11,804
Usually what they're looking for is how do
we even, how do we get our organizational

277
00:14:11,804 --> 00:14:13,294
hands around this?

278
00:14:13,294 --> 00:14:14,374
more generally.

279
00:14:14,374 --> 00:14:16,994
So how do we create policy around this
kind of thing?

280
00:14:16,994 --> 00:14:21,394
How do we create the procedures and
augment existing workflows for our say

281
00:14:21,394 --> 00:14:24,734
data scientists and product managers to
look for these kinds of risks, to flag

282
00:14:24,734 --> 00:14:25,694
these kinds of things?

283
00:14:25,694 --> 00:14:29,884
How do we put together the appropriate
risk board or committee so that there's

284
00:14:29,884 --> 00:14:31,854
someone to whom they can elevate those
kinds of concerns?

285
00:14:31,854 --> 00:14:36,064
How do we create the grounds on which that
committee is going to make decisions about

286
00:14:36,064 --> 00:14:40,234
what the appropriate benchmarks are for
sufficiently safe or sufficiently

287
00:14:40,234 --> 00:14:40,874
appropriate?

288
00:14:40,874 --> 00:14:42,308
Something along those lines.

289
00:14:43,310 --> 00:14:48,130
As for how those substantive decisions get
made, there's roughly two kinds of things,

290
00:14:48,130 --> 00:14:50,250
two kinds of tools that I like to
reference.

291
00:14:50,250 --> 00:14:53,130
One is an ethics statement or an AI ethics
statement.

292
00:14:53,130 --> 00:14:55,970
Some people are going to call them
responsible AI statements.

293
00:14:56,190 --> 00:14:59,630
Those are really, if you like, high level
articulations of values connected to

294
00:14:59,630 --> 00:15:00,730
guardrails of action.

295
00:15:00,730 --> 00:15:03,170
So because we value privacy, we'll never
do X.

296
00:15:03,170 --> 00:15:05,630
We'll never sell your data to a third
party.

297
00:15:05,970 --> 00:15:12,334
Because we value accountability, we will
integrate people's

298
00:15:12,334 --> 00:15:15,874
compliance with our AI ethics program into
their performance reviews.

299
00:15:15,874 --> 00:15:20,864
We'll put ownership of the AI ethics
program in the hands of a C -suite

300
00:15:20,864 --> 00:15:22,494
executive, that sort of thing.

301
00:15:22,494 --> 00:15:27,044
So there's those high level policies that
are, I'll give you one more, because we

302
00:15:27,044 --> 00:15:33,384
value justice or fairness, we will vet our
AI models for bias at each and every stage

303
00:15:33,384 --> 00:15:34,574
of the AI life cycle.

304
00:15:34,574 --> 00:15:39,344
So these are sort of commitments of action
tied to values that get at least some

305
00:15:39,344 --> 00:15:41,518
procedural guardrails in place.

306
00:15:41,518 --> 00:15:45,648
and some, some substantive actions that
are ruled out after that.

307
00:15:45,648 --> 00:15:49,348
I mean, even getting that as a big deal
and implementing those procedures, that's

308
00:15:49,348 --> 00:15:49,858
a big deal.

309
00:15:49,858 --> 00:15:55,088
So forget about, you know, as an act, as
at least as a former academic and you, you

310
00:15:55,088 --> 00:15:56,958
know, you want to deal with those really
tough cases.

311
00:15:56,958 --> 00:16:01,558
Let's deal with these really tough cases
where there's a lot of gray area.

312
00:16:01,558 --> 00:16:03,538
How do we decide what's appropriate for
this LM?

313
00:16:03,538 --> 00:16:08,388
But the truth is, and I would love for my,
for most of my customers and my clients to

314
00:16:08,388 --> 00:16:09,710
be like, yeah, let's help us with these.

315
00:16:09,710 --> 00:16:12,130
really hard, tough gray area cases.

316
00:16:12,270 --> 00:16:14,410
But that's, that's not where their heads
are.

317
00:16:14,410 --> 00:16:17,770
Their heads are, can we just, that's
running.

318
00:16:17,770 --> 00:16:18,910
Gray area cases is running.

319
00:16:18,910 --> 00:16:20,280
We're just learning how to walk here.

320
00:16:20,280 --> 00:16:22,030
We're barely crawling at the moment.

321
00:16:22,030 --> 00:16:25,410
How can we crawl safely without like
falling off the table?

322
00:16:25,410 --> 00:16:29,650
And so, sorry, I'm going on a bit of a
ramble.

323
00:16:29,650 --> 00:16:34,240
So one is there are those kinds of
conversations about really concrete models

324
00:16:34,240 --> 00:16:35,670
and what constitutes appropriate.

325
00:16:35,670 --> 00:16:38,254
One thing to do is to have general kinds
of policies.

326
00:16:38,254 --> 00:16:41,934
The second thing to do is to have what I
call ethical case law.

327
00:16:41,934 --> 00:16:45,754
So this is when you articulate certain
kinds of cases that you would say this

328
00:16:45,754 --> 00:16:46,504
would be inappropriate.

329
00:16:46,504 --> 00:16:48,154
This would be not appropriate.

330
00:16:48,154 --> 00:16:52,114
Sort of get internal alignment on those
being what I like to call the ethical

331
00:16:52,114 --> 00:16:53,114
nightmares.

332
00:16:53,154 --> 00:16:57,824
And then when you have a particular novel
case, like should it be allowed to say X

333
00:16:57,824 --> 00:17:04,054
to Y, let's say something with a certain
political content to a general audience,

334
00:17:04,054 --> 00:17:07,404
you can compare it to your ethical case
law, internal ethical case law and see

335
00:17:07,404 --> 00:17:08,046
whether...

336
00:17:08,046 --> 00:17:09,346
that provides sufficient guidance.

337
00:17:09,346 --> 00:17:11,886
And then of course, there's going to be
deliberation among the ethics board or the

338
00:17:11,886 --> 00:17:13,066
risk committee, whatever.

339
00:17:13,086 --> 00:17:17,366
The thing that I was backing up to say too
soon, I sort of interrupted myself is the

340
00:17:17,366 --> 00:17:21,086
truth of the matter is while the hard
cases are sexy and they're interesting,

341
00:17:21,086 --> 00:17:25,836
especially to academics, they are not
where most companies are because most

342
00:17:25,836 --> 00:17:29,886
companies are dealing with the not crazy
gray cases.

343
00:17:29,886 --> 00:17:34,986
You know, maybe an open AI is dealing with
those gray cases, a Google, a Microsoft,

344
00:17:35,086 --> 00:17:37,742
but a financial services company.

345
00:17:37,742 --> 00:17:44,742
Insurance industry, health care and life
sciences, food and beverage, apparel,

346
00:17:44,742 --> 00:17:48,442
retail, they're not dealing with those
crazy situations.

347
00:17:48,442 --> 00:17:50,672
They're just hiring people, right?

348
00:17:50,672 --> 00:17:52,442
They're using AI software to hire people.

349
00:17:52,442 --> 00:17:55,162
How do we not do that in a discriminatory
and biased way?

350
00:17:55,162 --> 00:17:57,932
So I don't know, this is my sort of, okay,
I'm going to stop talking now, but this is

351
00:17:57,932 --> 00:18:02,372
my very long -winded way of saying most
companies don't deal with those kinds of

352
00:18:02,372 --> 00:18:03,428
tough cases.

353
00:18:03,792 --> 00:18:04,622
Yeah, no, that was great.

354
00:18:04,622 --> 00:18:08,462
I there was a lot of real good meat in
what you put out there.

355
00:18:08,462 --> 00:18:10,892
So let me just unpack some of it.

356
00:18:11,332 --> 00:18:16,132
If companies are just starting down this
path, what's the most important thing for

357
00:18:16,132 --> 00:18:18,024
them to do first?

358
00:18:18,574 --> 00:18:22,384
I always like to say that sort of table
stakes is a call it a risk assessment or a

359
00:18:22,384 --> 00:18:26,134
gap analysis or AI ethical risk maturity
assessment.

360
00:18:26,134 --> 00:18:30,514
I think most organizations don't sort of
know where they are and what they have in

361
00:18:30,514 --> 00:18:32,594
relation to what those risks may be.

362
00:18:32,594 --> 00:18:37,434
So looking to see what existing governance
structures do we have that cover this sort

363
00:18:37,434 --> 00:18:38,154
of thing?

364
00:18:38,154 --> 00:18:39,314
What, what do we lack?

365
00:18:39,314 --> 00:18:41,464
What kinds of policies do we have that
cover this thing?

366
00:18:41,464 --> 00:18:44,434
What policies do we lack in most cases?

367
00:18:44,434 --> 00:18:48,238
If a company has done literally nothing on
the responsible AI front,

368
00:18:48,238 --> 00:18:53,368
then you might not even need to do that
gap analysis risk assessment maturity

369
00:18:53,368 --> 00:18:53,638
assessment.

370
00:18:53,638 --> 00:18:54,838
You know, you've got nothing.

371
00:18:54,838 --> 00:18:59,238
And now you've got to start with an AI
ethics statement, which is going to

372
00:18:59,238 --> 00:19:02,798
articulate what those standards are and
the procedures that are associated with

373
00:19:02,798 --> 00:19:03,268
those standards.

374
00:19:03,268 --> 00:19:07,638
And frankly, if you can, the metrics that
are associated with those procedures, I

375
00:19:07,638 --> 00:19:12,568
like to draw a really clear line from
values of a business or sorry, AI ethical

376
00:19:12,568 --> 00:19:17,582
risk values to procedures and the metrics
that are used.

377
00:19:17,582 --> 00:19:22,922
to track compliance and impact of those
procedures.

378
00:19:22,922 --> 00:19:25,702
So that's a good first step.

379
00:19:26,022 --> 00:19:29,042
And then sort of part and partial that is
then to start building a customized

380
00:19:29,042 --> 00:19:30,202
framework.

381
00:19:30,202 --> 00:19:33,782
When I say framework, I mean something
somewhat specific.

382
00:19:33,782 --> 00:19:38,942
It's going to include policies, additional
governance structures, governance bodies,

383
00:19:38,942 --> 00:19:44,402
like an ethics board, it's going to
include metrics, might include procedures,

384
00:19:44,662 --> 00:19:47,380
might include race matrices, that sort of
thing.

385
00:19:48,048 --> 00:19:51,608
Yeah, so it's one of things I really love
about your book, Ethical Machines, that

386
00:19:51,608 --> 00:19:56,098
it's rooted in serious ethics, but it's
very pragmatic in terms of these kinds of

387
00:19:56,098 --> 00:19:57,668
things that you're talking about.

388
00:19:57,668 --> 00:20:01,648
But how much do companies really differ?

389
00:20:01,648 --> 00:20:04,548
You're talking about customization, but I
think there's probably no company would

390
00:20:04,548 --> 00:20:08,438
say, well, our values, we don't care about
privacy, or our values, our discrimination

391
00:20:08,438 --> 00:20:09,428
is OK.

392
00:20:09,428 --> 00:20:12,078
So where is it really going to be
customized?

393
00:20:12,078 --> 00:20:13,968
There's actually quite a bit of
customization to be done.

394
00:20:13,968 --> 00:20:17,438
It's actually most of what we do is the
customization bit.

395
00:20:17,878 --> 00:20:20,278
There are lots of things that vary.

396
00:20:20,278 --> 00:20:22,238
So for instance, you're correct.

397
00:20:22,238 --> 00:20:25,468
Two different organizations, a hundred
organizations are going to say we value

398
00:20:25,468 --> 00:20:26,198
privacy.

399
00:20:26,198 --> 00:20:30,678
What that means is going to vary quite a
bit across organizations.

400
00:20:30,678 --> 00:20:34,658
Some will say we'll never sell consumer
data to a third party.

401
00:20:34,658 --> 00:20:36,498
That's part of what our commitment to
privacy is.

402
00:20:36,498 --> 00:20:38,542
Other companies will say, no, no, no.

403
00:20:38,542 --> 00:20:39,722
We're going to sell that data.

404
00:20:39,722 --> 00:20:40,702
That's what we do.

405
00:20:40,702 --> 00:20:42,162
It's a major revenue source for us.

406
00:20:42,162 --> 00:20:46,282
So we respect people's privacy, which
means we will always ensure that we're

407
00:20:46,282 --> 00:20:49,992
going to aggregate and anonymize that data
and use various kinds of privacy

408
00:20:49,992 --> 00:20:52,942
preserving techniques like Q anonymity.

409
00:20:52,942 --> 00:20:59,012
But that's, um, K anonymity, but, uh,
that's, uh, you know, that's very

410
00:20:59,012 --> 00:21:01,162
different from saying we're not going to
sell the data at all.

411
00:21:01,162 --> 00:21:04,922
There are differences in what the
governance structures have to look like.

412
00:21:04,922 --> 00:21:08,450
So look, some organizations are structured
like partnerships.

413
00:21:08,558 --> 00:21:13,938
And some are, if you like the sort of the
classic pyramid of CEO on top and then

414
00:21:13,938 --> 00:21:15,298
everyone below that.

415
00:21:15,298 --> 00:21:18,618
When you have an organization that has
sort of like a CEO on top and the CEO

416
00:21:18,618 --> 00:21:20,718
says, this is how it goes.

417
00:21:21,038 --> 00:21:25,148
This is a gross oversimplification, but
more or less, okay, if you've got the buy

418
00:21:25,148 --> 00:21:27,258
-in of the CEO, that's more or less how
it's going to go.

419
00:21:27,258 --> 00:21:31,918
If on the other hand, you have say a giant
consultancy spread across dozens of

420
00:21:31,918 --> 00:21:37,326
markets where there's not that kind of top
down change.

421
00:21:37,326 --> 00:21:41,016
because each you need to get buy -in from
each of the partnerships, each of the

422
00:21:41,016 --> 00:21:42,526
heads of each of the partnerships.

423
00:21:42,666 --> 00:21:45,806
Now governance looks totally different
because there's not, if you like, one

424
00:21:45,806 --> 00:21:46,986
board to rule them all.

425
00:21:46,986 --> 00:21:50,226
They might say like, yeah, that's good for
you guys in the US, but we're over here in

426
00:21:50,226 --> 00:21:51,006
the EU.

427
00:21:51,006 --> 00:21:52,796
And so we're going to do things, we're
going have to do things a little bit

428
00:21:52,796 --> 00:21:53,586
differently over here.

429
00:21:53,586 --> 00:21:55,546
Our standards are going to be different
here.

430
00:21:55,666 --> 00:21:59,546
Some people want to apply the same
standards across all markets.

431
00:21:59,666 --> 00:22:03,476
So yes, we're in EMEA, we're in the EU,
we're in the US, you know, North America,

432
00:22:03,476 --> 00:22:04,066
et cetera.

433
00:22:04,066 --> 00:22:06,376
And we're going have the same standards
across the board.

434
00:22:06,446 --> 00:22:09,116
Others say, no, no, no, we're going to
have different standards for different

435
00:22:09,116 --> 00:22:11,666
markets, different risk thresholds for
different markets.

436
00:22:11,666 --> 00:22:14,066
We're going to roll this out in different
ways.

437
00:22:14,066 --> 00:22:16,296
So we're going to roll it out by market,
for instance.

438
00:22:16,296 --> 00:22:18,986
So first we're going to roll out this
program in the U .S.

439
00:22:18,986 --> 00:22:22,186
Then we're going to expand to North
America, and then we're going to expand to

440
00:22:22,186 --> 00:22:24,746
the U and then to EMEA, et cetera.

441
00:22:24,746 --> 00:22:27,376
Others say, no, no, we're not going to
roll out by market.

442
00:22:27,376 --> 00:22:28,546
We're going to roll out by role.

443
00:22:28,546 --> 00:22:30,526
So first we're going to roll it out to all
the data scientists.

444
00:22:30,526 --> 00:22:33,086
I don't care where geographically they
happen to be.

445
00:22:33,086 --> 00:22:35,022
And then we're going to roll out to HR.

446
00:22:35,022 --> 00:22:36,602
And then we're going to roll it out to
marketing.

447
00:22:36,602 --> 00:22:40,222
And so there's different ways of, well,
that's going to be customized.

448
00:22:40,262 --> 00:22:42,042
Who's going to sit on the board?

449
00:22:42,042 --> 00:22:44,122
What kind of authority does the board
have?

450
00:22:44,122 --> 00:22:47,642
Can the ethics board be overruled by a
more senior executive?

451
00:22:47,642 --> 00:22:48,902
That's it.

452
00:22:48,902 --> 00:22:51,502
Some organizations can say, no, it can't
be overruled.

453
00:22:51,502 --> 00:22:52,922
That's the final say.

454
00:22:52,942 --> 00:22:56,032
Other will say, yeah, it can be overruled
by say the CEO or something along those

455
00:22:56,032 --> 00:22:57,622
lines or a chief data officer.

456
00:22:57,622 --> 00:23:00,242
Chief data officer is not actually on that
board.

457
00:23:00,662 --> 00:23:04,396
So there's a tremendous amount of, what
does training look like?

458
00:23:04,396 --> 00:23:04,926
What are risk?

459
00:23:04,926 --> 00:23:07,806
We already do risk matrices in our
organization.

460
00:23:07,806 --> 00:23:11,726
And the way that we do risk assessments is
different how our peers do risk

461
00:23:11,726 --> 00:23:12,166
assessments.

462
00:23:12,166 --> 00:23:16,226
We want responsible AI or AI ethical risk
assessments that cohere with, that

463
00:23:16,226 --> 00:23:19,626
harmonize or integrate with how we already
think about risk in our organization, how

464
00:23:19,626 --> 00:23:21,526
we already do those risk assessments.

465
00:23:21,546 --> 00:23:23,116
And same with metrics.

466
00:23:23,116 --> 00:23:28,646
We want metrics that mirror the kinds of
risk metrics that we already have at the

467
00:23:28,646 --> 00:23:30,336
enterprise wide or department level, et
cetera.

468
00:23:30,336 --> 00:23:34,148
So there's a tremendous amount of
customization that needs to be done.

469
00:23:34,382 --> 00:23:39,862
That's why there's the NIST AI assurance
or whatever it's called framework.

470
00:23:39,862 --> 00:23:40,662
And it's great.

471
00:23:40,662 --> 00:23:42,162
It's super smart.

472
00:23:42,162 --> 00:23:45,302
It's totally generic though, necessarily.

473
00:23:45,382 --> 00:23:50,762
And so you give that document to, here's a
really smart, generic framework.

474
00:23:50,762 --> 00:23:54,084
And there is a tremendous amount of work
left to be done.

475
00:23:55,536 --> 00:23:56,712
But are there right -

476
00:23:59,664 --> 00:24:04,260
of understanding what the organization is
and customizing the AI ethics.

477
00:24:05,390 --> 00:24:07,850
So I think there's reasonable and
unreasonable.

478
00:24:07,850 --> 00:24:10,830
And I think this is a place where we sort
of can think about it in terms of the

479
00:24:10,830 --> 00:24:11,650
political spectrum.

480
00:24:11,650 --> 00:24:14,390
I think that there are companies who are
sort of on the left side of the spectrum,

481
00:24:14,390 --> 00:24:15,430
take a Patagonia.

482
00:24:15,430 --> 00:24:18,190
There are companies on the right side of
the spectrum, take a Hobby Lobby.

483
00:24:18,190 --> 00:24:21,110
And we sort of think, yeah, that's fine in
the corporate world having that.

484
00:24:21,110 --> 00:24:22,590
I mean, most anywhere you think about it.

485
00:24:22,590 --> 00:24:26,070
Having that kind of diversity of values,
that's acceptable to us.

486
00:24:26,070 --> 00:24:27,660
There's beyond the pale, right?

487
00:24:27,660 --> 00:24:32,210
So you don't want KKK values anywhere
around that would be beyond the pale.

488
00:24:32,210 --> 00:24:33,720
So when are there right and wrong answers?

489
00:24:33,720 --> 00:24:34,638
I think that...

490
00:24:34,638 --> 00:24:37,748
There are some wrong answers certainly,
but there's lots of right answers that are

491
00:24:37,748 --> 00:24:41,258
mutually incompatible, just like
Patagonia's stance on some issues is going

492
00:24:41,258 --> 00:24:44,958
to be incompatible with the stance of,
say, a hobby lobby.

493
00:24:45,038 --> 00:24:49,918
That said, there's also right and wrong
answers as to, hey, does doing this

494
00:24:49,918 --> 00:24:51,918
actually help us to achieve our goals?

495
00:24:51,918 --> 00:24:54,658
Is this means sufficient to achieve our
end?

496
00:24:54,658 --> 00:24:57,278
And then there are certainly right and
wrong answers.

497
00:24:57,718 --> 00:24:59,908
They'll say, oh, we'll just do this.

498
00:24:59,908 --> 00:25:01,488
We'll just tell everyone x.

499
00:25:01,488 --> 00:25:03,748
And we'll say, that ain't going to do it.

500
00:25:03,748 --> 00:25:04,462
You could.

501
00:25:04,462 --> 00:25:05,682
That's not what's going to happen.

502
00:25:05,682 --> 00:25:08,542
You could tell them that, but that will
definitely lead to a lot of things falling

503
00:25:08,542 --> 00:25:09,142
between the cracks.

504
00:25:09,142 --> 00:25:11,102
We highly recommend against that.

505
00:25:11,482 --> 00:25:15,692
So I think there's right and wrong and
reasonable and unreasonable in the realm

506
00:25:15,692 --> 00:25:19,262
of what the values are, what the standards
are, what the procedures are.

507
00:25:19,262 --> 00:25:22,252
And then there's right and wrong in terms
of, are these means sufficient for

508
00:25:22,252 --> 00:25:23,334
achieving our ends?

509
00:25:23,984 --> 00:25:28,084
So you gave an example of can the CEO
overrule the ethics board?

510
00:25:28,144 --> 00:25:31,304
How would you help a company think through
what the answer is?

511
00:25:32,206 --> 00:25:34,686
Well, I mean, it's this.

512
00:25:34,686 --> 00:25:38,776
Look, if you really want to take the
ethics of this seriously, then you have an

513
00:25:38,776 --> 00:25:44,226
ethics board, cross -functional ethics
board, well -trained, both in, if you

514
00:25:44,226 --> 00:25:48,526
like, ethical deliberation on the kinds of
issues they're going to face, but also

515
00:25:48,526 --> 00:25:53,056
well -trained in understanding, because
usually it's this sort of board that's

516
00:25:53,056 --> 00:25:57,366
also going to oversee the rollout,
compliance, and impact of the program,

517
00:25:57,366 --> 00:26:00,622
well -trained in how to oversee a program
like this.

518
00:26:00,622 --> 00:26:05,762
And if you really want to prioritize
ethics and trustworthiness, etc., then you

519
00:26:05,762 --> 00:26:08,952
say the decision by the ethics committee
is the final one.

520
00:26:08,952 --> 00:26:09,822
That's it.

521
00:26:09,822 --> 00:26:13,542
What they say, if they say this is a no
-go, then it's a no -go.

522
00:26:13,542 --> 00:26:16,932
And that's really good if you want to
prioritize more than, you know, not maybe

523
00:26:16,932 --> 00:26:20,752
not more than anything, but very highly
prioritize something like long -term

524
00:26:20,752 --> 00:26:23,654
trustworthiness of the brand, then you do
that.

525
00:26:24,334 --> 00:26:28,554
That said, I think we need to be honest
here and say, there's going to be cases

526
00:26:28,554 --> 00:26:31,454
where doing the unethical thing is going
to be really profitable.

527
00:26:31,454 --> 00:26:37,074
There are sort of AI ethicists out there
who say, oh, the right thing is also the

528
00:26:37,074 --> 00:26:37,634
profitable thing.

529
00:26:37,634 --> 00:26:39,344
And so we're like, no, that we're true.

530
00:26:39,344 --> 00:26:40,374
We wouldn't have to talk about ethics.

531
00:26:40,374 --> 00:26:43,854
We'd be done here because they would
already do the profitable thing and then

532
00:26:43,854 --> 00:26:44,894
the ethics that would fall out of that.

533
00:26:44,894 --> 00:26:47,034
So there's clearly conflicts.

534
00:26:47,154 --> 00:26:52,884
And so if you say, listen, if you want to
give yourself some wiggle room where

535
00:26:52,884 --> 00:26:53,934
the...

536
00:26:53,934 --> 00:27:01,694
The reward is so great, the ROI, say
bottom line ROI is so great that you think

537
00:27:01,694 --> 00:27:05,094
the CEO should have the ability to
override the ethics committee.

538
00:27:05,454 --> 00:27:07,454
That's not, it's not crazy.

539
00:27:07,454 --> 00:27:12,324
It's a little bit dangerous in the short
term anyway, but it's not a crazy view to

540
00:27:12,324 --> 00:27:13,134
hold.

541
00:27:13,134 --> 00:27:17,944
In fact, I think in some cases it's quite
reasonable to say, you know, yeah, this is

542
00:27:17,944 --> 00:27:21,194
a business at the end of the day and we're
willing to take bigger risks.

543
00:27:21,794 --> 00:27:22,510
It's not.

544
00:27:22,510 --> 00:27:24,240
It's it's it's gonna tell me another
context.

545
00:27:24,240 --> 00:27:27,990
I mean, there are certainly cases in which
CEOs choose them morally abhorrent for

546
00:27:27,990 --> 00:27:28,980
some short -term profits.

547
00:27:28,980 --> 00:27:30,210
That's a bad thing.

548
00:27:30,210 --> 00:27:33,160
But should it be sort of, if you like,
structurally disallowed by the

549
00:27:33,160 --> 00:27:34,250
organization?

550
00:27:34,270 --> 00:27:36,108
Probably not in many cases.

551
00:27:36,632 --> 00:27:42,142
If I'm looking at a company and trying to
assess how serious they are, how effective

552
00:27:42,142 --> 00:27:45,832
they are in terms of what they're doing on
AI ethics, are there things that I should

553
00:27:45,832 --> 00:27:48,172
look for, their tells?

554
00:27:56,232 --> 00:27:57,432
Let's start with that, sure.

555
00:27:57,432 --> 00:28:01,290
I'm a customer or I'm someone just trying
to evaluate the company from the outside.

556
00:28:01,290 --> 00:28:02,370
You'll have no idea.

557
00:28:02,370 --> 00:28:03,470
No clue.

558
00:28:03,750 --> 00:28:07,270
The people, the sort of statements that
they put out are phenomenally superficial.

559
00:28:07,270 --> 00:28:10,610
They're not going to make their policy
public.

560
00:28:10,610 --> 00:28:14,590
They're usually not going to, you know,
when we work with our clients, we train

561
00:28:14,590 --> 00:28:18,190
them how to do auditing, how to ready
themselves for internal and external

562
00:28:18,190 --> 00:28:20,190
auditing of their AI ethics program.

563
00:28:20,190 --> 00:28:22,190
And in principle, they can make that stuff
public.

564
00:28:22,190 --> 00:28:24,270
Number one, most companies are not there
yet.

565
00:28:24,270 --> 00:28:25,870
They haven't done enough.

566
00:28:25,870 --> 00:28:27,670
They haven't done enough to audit.

567
00:28:27,970 --> 00:28:29,902
They're still designing the program.

568
00:28:29,902 --> 00:28:32,842
Some are at that audit stage, but most are
not.

569
00:28:32,842 --> 00:28:35,022
And two, most of them are not going to be
public about it.

570
00:28:35,022 --> 00:28:36,842
It just puts a target on their back.

571
00:28:36,982 --> 00:28:42,472
In the early days, this doesn't happen
anymore, but five years ago, companies

572
00:28:42,472 --> 00:28:46,372
were way more resistant to being public
about what they said about AI ethics or

573
00:28:46,372 --> 00:28:50,362
ethics generally because they felt that if
we say that we really care about ethics,

574
00:28:50,362 --> 00:28:53,922
we're putting a target on our back for
journalists to catch us.

575
00:28:53,922 --> 00:28:57,612
So if we say we care a lot about AI ethics
and then something goes haywire, we're

576
00:28:57,612 --> 00:28:59,054
going to get skewered.

577
00:28:59,054 --> 00:28:59,774
by the journalist.

578
00:28:59,774 --> 00:29:01,184
So let's just shut up about it.

579
00:29:01,184 --> 00:29:01,934
Keep quiet.

580
00:29:01,934 --> 00:29:05,174
We'll do this stuff internally, but let's
not tell everyone about it.

581
00:29:05,174 --> 00:29:06,664
That's changed over the last five years.

582
00:29:06,664 --> 00:29:10,054
Now it's more like, oh, whoa, everyone
else is putting out AI ethics statements.

583
00:29:10,054 --> 00:29:12,954
We better put out an AI ethics statement
to keep up.

584
00:29:12,954 --> 00:29:14,034
So that's good.

585
00:29:14,034 --> 00:29:17,534
But the statements are, by and large,
phenomenally superficial and mean nothing.

586
00:29:17,534 --> 00:29:20,174
The average citizen, they don't know
anything.

587
00:29:20,174 --> 00:29:25,384
Even if they look at the privacy policy of
the organization, I've seen many examples

588
00:29:25,384 --> 00:29:28,224
of paper tigers, many examples where,

589
00:29:43,182 --> 00:29:46,618
do you measure success in terms of the
work that you do with organizations?

590
00:29:48,974 --> 00:29:49,604
How do I measure success?

591
00:29:49,604 --> 00:29:50,364
That's a good question.

592
00:29:50,364 --> 00:29:54,364
I mean, you know, if they're just doing
the things that we're telling them to do

593
00:29:54,364 --> 00:29:56,894
more or less, I mean, when I say what we
tell them to do, we're giving them

594
00:29:56,894 --> 00:29:57,284
options.

595
00:29:57,284 --> 00:30:01,214
We say, look, you can build your program
this way or that way.

596
00:30:01,374 --> 00:30:04,644
You know, for instance, we say, you can
build an AI ethical risk program or

597
00:30:04,644 --> 00:30:07,254
responsible AI program, or you can build a
digital ethics program.

598
00:30:07,254 --> 00:30:12,224
The digital ethics program will include
AI, but it's also a bit broader than that

599
00:30:12,224 --> 00:30:16,574
to include other kinds of technologies,
including ones that we don't, either

600
00:30:16,574 --> 00:30:18,510
applications of AI,

601
00:30:18,510 --> 00:30:23,310
that we don't have yet, new kinds of AI we
don't have yet, new kinds of technologies,

602
00:30:23,310 --> 00:30:24,720
new applications, new technologies.

603
00:30:24,720 --> 00:30:28,330
So let's say blockchain, quantum, AR, VR.

604
00:30:29,310 --> 00:30:32,650
Ideally, they would all say, oh yeah,
digital ethics.

605
00:30:32,650 --> 00:30:36,380
It's the broadest, it's the most
comprehensive, it's the most proactive way

606
00:30:36,380 --> 00:30:37,330
we can address this.

607
00:30:37,330 --> 00:30:39,790
These issues aren't going away, they're
only growing.

608
00:30:39,790 --> 00:30:42,250
So we say, look, digital ethics is ideal.

609
00:30:42,250 --> 00:30:45,950
But sometimes they say, listen, we'd love
to do that.

610
00:30:46,050 --> 00:30:48,646
We don't have the internal buy -in for
that.

611
00:30:48,750 --> 00:30:54,250
What we have, we have board support for
building an AI ethics program.

612
00:30:54,350 --> 00:30:56,460
That's what we're not going to go back to
them and say, you know, we want to do

613
00:30:56,460 --> 00:30:58,610
something bigger or we want to do
something broader.

614
00:30:58,610 --> 00:30:59,810
That's where our buy -in is.

615
00:30:59,810 --> 00:31:01,290
That's the budget we have.

616
00:31:01,290 --> 00:31:02,320
That's where our focus is.

617
00:31:02,320 --> 00:31:03,480
That's what our priorities are.

618
00:31:03,480 --> 00:31:05,230
So that's what we're going to do.

619
00:31:05,430 --> 00:31:08,390
Is that a success or a failure on my view?

620
00:31:08,390 --> 00:31:09,710
It's still a success.

621
00:31:09,710 --> 00:31:12,830
You know, it's not the ideal, but it's,
it's a success.

622
00:31:12,930 --> 00:31:16,170
What's another success if they actually
move on to implementation?

623
00:31:16,690 --> 00:31:17,678
There are.

624
00:31:17,678 --> 00:31:20,388
plenty of organizations that will start to
write an ethics statement and then just

625
00:31:20,388 --> 00:31:20,758
stop.

626
00:31:20,758 --> 00:31:22,078
That's a failure.

627
00:31:22,598 --> 00:31:24,218
You've got to get to the point of
implementation.

628
00:31:24,218 --> 00:31:27,358
You've got to get to the point of training
your people.

629
00:31:27,358 --> 00:31:29,558
This is, this is crucial.

630
00:31:29,558 --> 00:31:32,918
There's got to be that, if you like role
agnostic training, the training that

631
00:31:32,918 --> 00:31:35,778
everyone across the organization gets,
then there has to be role specific

632
00:31:35,778 --> 00:31:36,438
training.

633
00:31:36,438 --> 00:31:41,858
There has to be updates or augmentations
of workflows of say data scientists,

634
00:31:41,858 --> 00:31:43,518
people in HR, et cetera.

635
00:31:43,658 --> 00:31:44,958
There has to be documentation.

636
00:31:44,958 --> 00:31:46,382
You know, there's got to be all these.

637
00:31:46,382 --> 00:31:50,952
things where it actually impacts the day
-to -day operations.

638
00:31:50,952 --> 00:31:53,642
So what we like to say to our clients is,
okay, you've done all this, blah, blah,

639
00:31:53,642 --> 00:31:56,562
blah, now we got to get the
implementation, because you can write all

640
00:31:56,562 --> 00:31:59,682
this stuff, you can have this policy, but
that doesn't mean that the data scientist

641
00:31:59,682 --> 00:32:01,212
knows what they need to do tomorrow at 9 a
.m.

642
00:32:01,212 --> 00:32:02,202
when they get to work.

643
00:32:02,202 --> 00:32:04,122
This needs to be made clear.

644
00:32:04,622 --> 00:32:08,812
And if they don't get to that, that's
maybe not yet a failure, but it's not yet

645
00:32:08,812 --> 00:32:09,750
a success.

646
00:32:10,376 --> 00:32:15,956
One thing that's changed in this area in
recent years has been that there's been an

647
00:32:15,956 --> 00:32:20,996
upsurge of regulation and legislation and
discussion and passage of things like the

648
00:32:20,996 --> 00:32:22,396
AI Act in Europe.

649
00:32:22,756 --> 00:32:27,106
How does that impact on what you do or on
what companies actually do on the ground?

650
00:32:27,106 --> 00:32:30,496
Because on the one hand, now there's going
to be all these requirements.

651
00:32:30,496 --> 00:32:34,436
On the other hand, if this just becomes a
check the box for compliance, then it

652
00:32:34,436 --> 00:32:35,816
might actually be counterproductive.

653
00:32:35,816 --> 00:32:37,308
So what do you see?

654
00:32:37,646 --> 00:32:39,446
I think it's too early to tell.

655
00:32:39,446 --> 00:32:40,206
It's still TBD.

656
00:32:40,206 --> 00:32:42,066
Yeah, there are regulations out there.

657
00:32:42,066 --> 00:32:44,956
You know, New York City came out with a
regulation not so long ago.

658
00:32:44,956 --> 00:32:52,476
I think it passed this past summer that
all HR tools, sorry, all AI tools involved

659
00:32:52,476 --> 00:32:58,266
in the HR hiring decision -making process
need to be audited by a third party.

660
00:32:58,266 --> 00:33:01,766
And that's not being enforced.

661
00:33:01,766 --> 00:33:04,326
I have no idea if it's had any impact at
all.

662
00:33:04,326 --> 00:33:06,232
The EU AI Act.

663
00:33:06,510 --> 00:33:11,550
promises to do more That's plausible,
especially if you're in the EU.

664
00:33:11,550 --> 00:33:15,070
Of course, there are lots of companies in
the US who operate in the EU So they'll

665
00:33:15,070 --> 00:33:18,340
have to make sure that they're compliant
as well It's gonna do something.

666
00:33:18,340 --> 00:33:22,750
I think it's just frankly it's too early
to tell How much of an impact it's going

667
00:33:22,750 --> 00:33:28,430
to have one thing that I that I anticipate
happening could be false The vast majority

668
00:33:28,430 --> 00:33:33,720
of owners of this kind of these kinds of
problems within organizations are on the C

669
00:33:33,720 --> 00:33:35,182
suite on the tech side of the house

670
00:33:35,182 --> 00:33:38,952
So a chief data officer, a chief analytics
officer, sometimes a chief information

671
00:33:38,952 --> 00:33:43,892
security officer or a chief information
officer, chief digital officer, blah,

672
00:33:43,892 --> 00:33:44,822
blah, blah, blah, blah.

673
00:33:44,822 --> 00:33:48,242
It's the risk and compliance people, not
so much involved.

674
00:33:48,242 --> 00:33:50,122
We ask, we say, look, it's great.

675
00:33:50,122 --> 00:33:51,282
We need to bring them to the table.

676
00:33:51,282 --> 00:33:52,842
We need them in these conversations.

677
00:33:53,242 --> 00:33:55,622
Legal is pretty standard to say, well,
bring them to the table.

678
00:33:55,622 --> 00:33:59,262
But usually the risk and compliance people
are not spearheading it.

679
00:33:59,262 --> 00:34:03,918
So I think operationally we'll probably
see a change where it gets.

680
00:34:03,918 --> 00:34:09,868
less in the hands of tech people and more
in the hands of those risk and compliance

681
00:34:09,868 --> 00:34:13,768
people, or at least if it's less in the
hands of the data people, the risk and

682
00:34:13,768 --> 00:34:16,278
compliance people will have to get more
involved because that's their job.

683
00:34:16,278 --> 00:34:17,938
So I think we'll see more of that.

684
00:34:17,938 --> 00:34:22,738
That in principle will be helpful because
those chief data officers, what do they

685
00:34:22,738 --> 00:34:23,828
know about risk and compliance?

686
00:34:23,828 --> 00:34:25,258
They're not risk and compliance folks.

687
00:34:25,258 --> 00:34:29,698
They're engineers, they're data
scientists, they build cool shit.

688
00:34:29,778 --> 00:34:31,118
That's not what they do.

689
00:34:31,118 --> 00:34:33,578
And so I think that having...

690
00:34:33,614 --> 00:34:38,124
trained risk and compliance people
probably owning the program or at least

691
00:34:38,124 --> 00:34:42,174
playing a significant role in it will
increase adoption.

692
00:34:42,334 --> 00:34:44,294
Will it be mere box checking?

693
00:34:45,174 --> 00:34:47,534
I don't know.

694
00:34:47,534 --> 00:34:49,814
Probably the beginning is my guess.

695
00:34:49,814 --> 00:34:52,424
There's also a way in which companies tend
to overestimate what they're actually

696
00:34:52,424 --> 00:34:53,254
doing.

697
00:34:53,254 --> 00:34:56,074
So we'll ask companies, oh, so are you
doing X, Y, and oh yeah, yeah, yeah.

698
00:34:56,074 --> 00:34:56,904
You're checking for bias?

699
00:34:56,904 --> 00:34:57,554
Yeah, yeah, yeah, yeah.

700
00:34:57,554 --> 00:34:58,594
We check for bias.

701
00:34:58,594 --> 00:35:02,554
And then we sort of start digging around
and we find out, oh, not really.

702
00:35:02,554 --> 00:35:03,310
I mean like...

703
00:35:03,310 --> 00:35:05,910
The thing that they're doing is so
minimal.

704
00:35:05,910 --> 00:35:10,290
And so there's also a level of self
-deception, or at least ignorance, about

705
00:35:10,290 --> 00:35:12,990
how robust what they're doing actually is.

706
00:35:12,990 --> 00:35:17,950
So, you know, I'm optimistic, but it's a
cautious optimism.

707
00:35:17,950 --> 00:35:20,504
I wouldn't be shocked if it turned out to
be box -checking.

708
00:35:21,840 --> 00:35:26,670
And is there anything else that you see
potentially coming in the next few years

709
00:35:26,670 --> 00:35:30,250
that's going to have a major impact on AI?

710
00:35:31,182 --> 00:35:33,662
I mean, there's two kinds of things,
broadly speaking, that could have the

711
00:35:33,662 --> 00:35:34,402
impact.

712
00:35:34,402 --> 00:35:35,982
The, um, and they're, they're compatible.

713
00:35:35,982 --> 00:35:40,022
One is a big disaster.

714
00:35:40,022 --> 00:35:42,682
Think of like Cambridge Analytica, but for
AI.

715
00:35:42,682 --> 00:35:45,542
And so if you get that kind of thing, that
will help.

716
00:35:45,542 --> 00:35:47,502
And, uh, help.

717
00:35:47,502 --> 00:35:49,062
I mean, you know, that'll be the silver
lining.

718
00:35:49,062 --> 00:35:52,342
That'll be a cause of people thinking more
seriously.

719
00:35:52,522 --> 00:35:53,662
That might happen.

720
00:35:53,662 --> 00:35:54,882
It wouldn't surprise me.

721
00:35:54,882 --> 00:35:58,062
But the other thing is just, you know,
death by a thousand cuts.

722
00:35:58,062 --> 00:35:58,990
It's so.

723
00:35:58,990 --> 00:36:02,400
there's this AI incident and then this one
and then this one and then this one and

724
00:36:02,400 --> 00:36:06,870
this one, neither one of which is a
massive crisis, but the aggregate should

725
00:36:06,870 --> 00:36:10,110
be terrifying, I think, eventually to
people in the C -suite and the board

726
00:36:10,110 --> 00:36:12,730
responsible for protecting the brand or
their organization.

727
00:36:12,730 --> 00:36:17,290
So I just think it's going to be the case
that we're seeing increased adoption and

728
00:36:17,290 --> 00:36:20,560
as you get increased adoption, you get
increased deployment and increased

729
00:36:20,560 --> 00:36:25,450
deployment means increased probability of
things going ethically sideways.

730
00:36:25,530 --> 00:36:27,790
And so you get more things going ethically
sideways and they're going to be

731
00:36:27,790 --> 00:36:29,222
published, et cetera, et cetera.

732
00:36:29,454 --> 00:36:33,894
On that note, by the way, increased
adoption, there are some people who say,

733
00:36:34,454 --> 00:36:38,414
oh, generative AI, it's been a year
already, or it's been a year and two

734
00:36:38,414 --> 00:36:39,134
months, whatever.

735
00:36:39,134 --> 00:36:41,614
We haven't seen the massive change yet.

736
00:36:41,614 --> 00:36:44,034
And I just think, just chill, just hold
on.

737
00:36:44,034 --> 00:36:46,494
We're talking about the most cutting edge
technology out there.

738
00:36:46,494 --> 00:36:47,504
They're working on it.

739
00:36:47,504 --> 00:36:49,034
They're figuring it out.

740
00:36:49,194 --> 00:36:55,654
Most of our clients are running dozens,
and in some cases, hundreds of pilots

741
00:36:55,654 --> 00:36:56,854
using generative AI.

742
00:36:56,854 --> 00:36:58,264
They're just trying to figure out how this
thing works.

743
00:36:58,264 --> 00:36:59,118
They're trying to figure out.

744
00:36:59,118 --> 00:37:00,698
Does it solve a business problem for us?

745
00:37:00,698 --> 00:37:01,878
What business problem does it solve?

746
00:37:01,878 --> 00:37:03,498
How do we use it responsibly?

747
00:37:03,498 --> 00:37:07,998
So, you know, for all the talk about, oh,
it's been, it's out here.

748
00:37:08,038 --> 00:37:09,758
No, not really.

749
00:37:09,758 --> 00:37:12,268
Open AI released their stuff a year and a
bit ago.

750
00:37:12,268 --> 00:37:14,998
Google a little bit less than that.

751
00:37:15,678 --> 00:37:18,818
Then there's all these other, you know,
llama and anthropic.

752
00:37:19,298 --> 00:37:20,068
Just wait a second.

753
00:37:20,068 --> 00:37:27,008
We're going to see, I would, unless things
go oddly haywire, we're going to see lots

754
00:37:27,008 --> 00:37:28,866
of adoption, lots of deployment.

755
00:37:28,910 --> 00:37:32,230
in 2024, let alone 2025.

756
00:37:32,230 --> 00:37:36,278
And with the increased adoption, we're
going to see more bad incidents.

757
00:37:37,008 --> 00:37:41,528
All right, well, more bad incidents, but
hopefully also more good work for people

758
00:37:41,528 --> 00:37:42,472
like you.

759
00:37:42,766 --> 00:37:46,816
Yeah, I mean, I should say, you know, this
comes against the backdrop of being, I

760
00:37:46,816 --> 00:37:48,976
don't know, not a pessimist about the
technology.

761
00:37:48,976 --> 00:37:49,836
I'm not a catastrophist.

762
00:37:49,836 --> 00:37:52,996
I mean, there are some people out there
who are screaming that the sky is falling

763
00:37:52,996 --> 00:37:57,506
and everyone's going to die and this is a
disaster and it's not ready for prime time

764
00:37:57,506 --> 00:37:58,746
and it never will be.

765
00:37:58,746 --> 00:38:00,206
I just think that's sort of stupid.

766
00:38:00,206 --> 00:38:03,326
I mean, I've seen use cases that work and
they do amazing things.

767
00:38:03,766 --> 00:38:07,976
There are cases, I was recently talking to
an organization yesterday that said they

768
00:38:07,976 --> 00:38:11,726
implemented a generative AI solution for
certain kinds of...

769
00:38:11,726 --> 00:38:16,266
search and summarization of a process that
used to take 40 hours and now it takes

770
00:38:16,266 --> 00:38:17,326
four.

771
00:38:17,366 --> 00:38:18,646
And they are happy with the results.

772
00:38:18,646 --> 00:38:19,616
They're happy with the metrics.

773
00:38:19,616 --> 00:38:21,786
They're happy with how it's level of
accuracy.

774
00:38:21,786 --> 00:38:24,506
They're happy with the level of risk that
there is in the particular use case that

775
00:38:24,506 --> 00:38:25,646
it is.

776
00:38:26,046 --> 00:38:27,176
Just give it, there'll be more.

777
00:38:27,176 --> 00:38:30,526
That's a well -funded, you know,
organization with lot who has lots of

778
00:38:30,526 --> 00:38:32,506
power to throw out these kinds of
problems.

779
00:38:32,506 --> 00:38:34,866
Others don't have that kind of power or
they're slower.

780
00:38:34,866 --> 00:38:36,626
They want to see what others are doing.

781
00:38:36,626 --> 00:38:38,066
But yeah, I'm not a catastrophist.

782
00:38:38,066 --> 00:38:41,390
I think that there's tremendous good
opportunity.

783
00:38:41,390 --> 00:38:44,680
And yeah, there's lots of opportunity
though to make sure for people like me

784
00:38:44,680 --> 00:38:47,612
that to help organizations make sure they
don't go off the rails.

785
00:38:48,528 --> 00:38:50,158
Reed, thanks so much for this
conversation.

786
00:38:50,158 --> 00:38:51,978
It's been really instructive and
fascinating.

787
00:38:52,026 --> 00:38:52,962
my pleasure.

