IN BRIEF:
• Many C-suite executives may not fully understand consumer concerns regarding AI, which can create gaps in trust and hinder adoption.
• Transparency in responsible AI practices is essential for enhancing consumer confidence and engagement with AI technologies.
• A collaborative approach across the entire C-suite is crucial for effectively implementing responsible AI initiatives and aligning with consumer expectations.
Artificial intelligence (AI) is evolving rapidly, with businesses striving to harness its potential across various products, services, and operations. However, successful implementation hinges both on speed and principles of responsible AI, which are crucial for fostering adoption and ensuring long-term value.
While many organizations have established responsible AI guidelines, the effectiveness of these principles in practice remains questionable. A key concern is whether C-suite leaders truly grasp consumer apprehensions about AI and are prepared for the emerging risks associated with advanced AI technologies.
To shed light on these issues, EY initiated the Responsible AI Pulse survey, a global survey conducted in March and April that involved 975 C-suite leaders, including CEOs, CFOs, CHROs, CIOs, CTOs, CMOs, and CROs, all responsible for AI within their organizations. These respondents represented companies with annual revenue exceeding $1 billion across 21 countries in the Americas, Asia-Pacific, and EMEIA. The initial findings reveal a significant disconnect between C-suite perceptions and consumer sentiments regarding responsible AI, with many executives displaying misplaced confidence in their practices and alignment with consumer concerns, potentially hindering user adoption and trust as autonomous AI models become more prevalent.
Furthermore, the findings from the EY AI Sentiment Index Study are referenced, which surveyed 15,060 individuals across 15 countries to assess global sentiments toward AI.
C-SUITE LEADERS’ PERCEPTIONS VS CONSUMER SENTIMENT
CEOs are notably more attuned to responsible AI issues and consumer sentiments compared to their peers in the C-suite. While 31% of C-suite leaders claim their organizations have fully integrated AI solutions, this figure may not accurately reflect the true potential of AI. Achieving comprehensive AI integration requires a fundamental rethinking of business processes, identification of high-value use cases, and investment in foundational elements such as data governance and talent management.
As organizations prepare to invest in advanced AI models that support reasoning and decision-making, it is crucial for C-suite leaders to recognize that AI implementation is an ongoing journey. Continuous education on AI risks and governance is essential for maintaining trust among consumers and stakeholders.
BUILDING CUSTOMER TRUST
To foster customer trust, organizations must prioritize transparency and accountability in their AI practices. In particular, organizations can ensure their AI practices align with ethical standards and legal requirements to build customer trust by adhering to the principles outlined in the NPC Advisory No. 2024-04, particularly regarding the Data Privacy Act.
Transparency is crucial; by clearly informing data subjects about AI usage, its purpose, and potential risks, organizations establish a foundation of trust. Ensuring a lawful basis for AI use — such as consent or contracts — while focusing on data minimization reassures customers that their data is handled responsibly.
Accountability and human oversight are similarly vital. Organizations must take responsibility for AI outcomes, ensuring significant decisions involve human judgment. This commitment mitigates risks and prioritizes customer interests, enhancing confidence in AI capabilities.
Addressing fairness, bias, and accuracy is also essential. By actively working to eliminate bias and maintain accurate datasets, organizations demonstrate their dedication to ethical practices. Empowering customers with data subject rights — allowing them to object, rectify, and review automated decisions — further reinforces trust.
Implementing governance mechanisms, such as risk analyses and grievance processes, signals to customers that their concerns are valued. Additionally, using Model Contractual Clauses (MCCs) for cross-border data transfers ensures safe handling of information, bolstering customer confidence.
MISALIGNMENT OF RESPONSIBLE AI PRINCIPLES
Even though nearly two-thirds of C-suite leaders believe they are well-aligned with consumer perceptions of AI, data from the EY AI Sentiment Index reveals a stark contrast. Consumers express significantly greater concerns regarding responsible AI principles, such as accuracy, privacy, and accountability. This misalignment may stem from inadequate communication about AI governance and risk management practices.
Interestingly, companies still in the process of integrating AI tend to be more cautious in their assessments of alignment with consumer attitudes. These organizations often demonstrate a stronger awareness of responsible AI concerns, particularly regarding privacy and security.
THE ROLE OF CEOS IN RESPONSIBLE AI LEADERSHIP
CEOs emerge as leaders in responsible AI awareness, showing a better alignment with consumer concerns compared to other C-suite roles. Their broader responsibilities and customer-facing roles enable them to champion responsible AI initiatives effectively. As AI continues to permeate various aspects of business, CEOs are well-positioned to advocate for responsible practices and guide their peers in the C-suite.
C-LEVEL CONSIDERATIONS
To address the gaps identified in the survey, C-suite leaders should prioritize listening to consumer feedback to better understand their concerns about responsible AI. Engaging with consumers allows leaders to gain insights into the specific issues that matter most to their audience. This process should involve customer-facing executives and those in traditionally back-office roles, ensuring that all leaders are aware of consumer sentiments and can respond accordingly.
Additionally, it is crucial for C-suite leaders to integrate responsible AI principles throughout the entire AI development process. This means adopting practices that prioritize human-centric design and proactively addressing the key risks associated with AI applications. By embedding responsible AI into every stage of innovation, organizations can ensure that their solutions are not only effective but also aligned with consumer expectations and ethical standards.
Finally, transparent communication about responsible AI practices is essential for building consumer trust. Organizations must clearly articulate how they manage AI-related risks and the measures they have in place to uphold responsible practices. By effectively showcasing their commitment to responsible AI, companies can differentiate themselves in the marketplace, enhancing their competitive advantage and fostering greater consumer confidence.
GAINING AN ADVANTAGE WITH RESPONSIBLE AI USE
In the Philippines, the Department of Trade and Industry (DTI) has launched the National Artificial Intelligence (AI) Strategy Roadmap 2.0 and the Center for AI Research (CAIR), establishing the country as a Center of Excellence in AI research and development. This initiative aims to leverage AI’s transformative potential to enhance the economy and improve the quality of life for Filipinos, emphasizing responsible AI adoption through ethical governance. CAIR will focus on developing AI solutions for regional challenges like sustainable agriculture and disaster resilience, supporting the broader goals of innovation and inclusive development.
To secure a competitive edge, C-suite leaders must prioritize consumer concerns, embed responsible AI throughout the innovation lifecycle, and clearly communicate their practices. By aligning with consumer expectations and addressing the risks associated with emerging AI technologies, organizations can position themselves as leaders in responsible AI, ultimately creating long-term value.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.
Lee Carlo B. Abadia is a technology consulting principal of SGV & Co.