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<v Instructor>In this lesson, we will learn about</v>

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ethical and governance considerations.

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Ethical and governance considerations are used to establish

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frameworks and guidelines to ensure AI,

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or artificial intelligence,

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is developed and used responsibly.

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And that it aligns with societal values

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and organizational principles.

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Ethical and governance considerations

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include the ethical governance of AI,

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and organizational policies on the use of AI.

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The ethical governance of AI refers to the structures

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and practices put in place

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to guide the ethical deployment of AI.

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Organizational policies on the use of AI

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are specific rules and guidelines created by companies

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to govern how AI is implemented within their organization.

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Local organizational policies ensure that AI use

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aligns with both legal requirements

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and an organization's ethical standards.

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Let's learn more about the ethical governance

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of artificial intelligence, and organizational policies

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on the use of artificial intelligence.

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First, we have the ethical governance of AI,

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or artificial intelligence.

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The ethical governance of AI establishes structures

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and practices to ensure AI is used responsibly,

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aligning with societal values.

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This governance prioritizes fairness, transparency,

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and accountability in AI applications,

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setting the foundation for trust and protection.

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A prominent example of ethical governance

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is the European Union's proposed AI Act,

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which categorizes AI systems into various risk levels

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and specifies guidelines for each.

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For high risk applications, such as facial recognition,

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the act requires comprehensive bias testing

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to detect and mitigate potential discriminatory outcomes.

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Alongside transparency through clear documentation

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of data sources, algorithms,

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and decision making processes for regulatory audits.

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Developers are also expected

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to integrate human oversight features,

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allowing intervention in the case of errors.

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And informing users of system capabilities and limitations.

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These aspects of ethical governance

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help guide responsible AI deployments,

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minimizing unintended harm, and promoting fairness.

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Conversely, a failure in ethical governance

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is demonstrated by COMPAS,

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the Correctional Offender Management

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Profiling for Alternative Sanctions.

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This is an algorithm used in the United States

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to assess recidivism, which is the likelihood

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of an individual re-offending after prison release.

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Deployed without requirements for bias testing

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or transparency, COMPAS operated with limited scrutiny

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over its impact on users.

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And while it was designed to support

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pretrial and parole decisions,

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rather than determine sentences directly,

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studies revealed that COMPAS tended to overestimate

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the risk of recidivism for minority defendants,

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leading to racial disparities in outcomes.

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In this case, an ethical governance framework

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could have mandated bias audits and transparency measures,

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allowing stakeholders to monitor and address

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any unintended discriminatory patterns

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in the algorithm's outputs.

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This underscores the importance of governance structures

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in high stakes decisions to prevent unfair treatment

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stemming from biased data.

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Now, for AI governance frameworks to be effective,

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they must prioritize transparency and accountability.

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Transparency enables users and stakeholders to understand

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the AI decision making processes,

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especially when these decisions

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could affect individual rights.

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By setting transparency standards,

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organizations can make available clear explanations

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of the AI's decision logic, data sources,

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and any potential biases,

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building trust and ensuring informed AI use.

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Accountability is equally as important,

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as it establishes responsibility

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for the outcomes of AI systems.

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With accountability embedded into governance,

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organizations have protocols to address errors or biases,

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and correct issues properly.

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This ensures that if an AI system produces

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an inaccurate or a harmful result, there is a clear process

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to investigate and prevent future errors,

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enabling organizations to manage risks.

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And support the ethical deployment

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of AI in critical applications.

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Second, we have organizational policies on the use of AI.

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Organizational policies on AI use establish internal rules

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and guidelines to control how AI is used within a company,

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ensuring it aligns with ethical standards

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and legal obligations.

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Microsoft, for example, has AI ethics principles

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that support reviews for high impact systems

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involving expert oversight,

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to help ensure technology is deployed responsibly.

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This policy safeguards users from potential harm,

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and standardizes responsible AI use

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across the organization.

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A notable case underscoring the importance

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of strong policies is Amazon's discontinued AI hiring tool,

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which was found to exhibit gender bias

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due to being trained on historical data

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that favored male candidates.

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This issue highlights why internal policies should mandate

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fairness checks to prevent AI from replicating biases,

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especially in sensitive areas like hiring

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that impact people's careers and livelihoods.

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Okay, we have a good and bad example

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of organizational policies on AI now.

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So, what components make a good one?

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Transparency, training and education,

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as well as clear guidelines

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and continuous training is the answer.

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Transparent policies establish clear ethical boundaries,

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helping employees understand how AI

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will be applied within their roles.

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And defining acceptable practices

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for data collection and AI applications,

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aligned with ethical and privacy standards.

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Next, training and education policies ensure employees

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are equipped with knowledge about AI ethics.

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A structured ethics training program, for instance,

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could cover topics like data privacy,

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algorithmic bias, and transparency in decision making.

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Finally, clear guidelines and continuous training

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reinforce accountability at all levels of AI interaction,

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ensuring that employees use AI

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in ways that align with organizational values.

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Understanding both the technical

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and ethical frameworks of AI

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helps employees engage with the technology responsibly,

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building trust in AI as it becomes

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more deeply integrated into business processes.

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So remember, ethical and governance frameworks

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for artificial intelligence, or AI,

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ensure the technology is used responsibly.

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And aligns with societal and organizational values.

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First, ethical governance provides the structure

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for deploying AI fairly, transparently, and accountably.

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This builds trust and minimizes unintended harm.

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Next, organizational policies define specific rules

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for how AI is applied with companies, ensuring its use

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aligns with both ethical standards and legal requirements.

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Finally, transparency and accountability

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are key to these frameworks,

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helping stakeholders understand AI decisions

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and manage risks responsibly.

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Together, these approaches support a safe

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and ethical integration of AI, fostering a culture

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of responsible technology use within organizations.

