A 2023 Statista research highlighted that the annual market growth of AI would rise to US$826.70bn by 2030. $79bn would be invested in specialized applications development to enhance automation and productivity across sectors like content marketing, security, and health. The rapid expansion of AI across the business landscape has opened the gate of new opportunities—and, like the Pandora’s box, has also led to potential risks like AI bias and ethical and security concerns, among others.
A 2023 survey revealed that AI bias is a prominent challenge for 83% of ML professionals, impacting a business’s credibility, customer trust, and ethical obligations. Robust ethical AI frameworks can safeguard businesses from these technological debacles. A Boston Consulting Group (BCG) study found that organizations implementing and scaling Responsible AI instead of only focusing on AI scaling reduced AI failures by 30%. This data shows why building and deploying Responsible AI is crucial to boosting customer engagement and trust and driving business value.
The adoption of AI is prominent across industries worldwide, yet building Responsible AI remains a major challenge. This is where Pega AI successfully redefines perception with its Ethical AI Framework, empowering businesses to develop and deploy advanced Responsible AI applications with confidence.
Explore the core principles of Pega’s Responsible AI and the best practices behind its development. Learn how these apps can fuel your business transformation and help you stay atop the waves of AI-driven technological evolution.
Pega AI Ethical Framework Principles
The lightning pace of AI expansion has made Responsible AI a critical priority. Challenges such as data safety and reliability, reputational and credibility concerns, legal obligations and their impact on socio-economic factors, and customer trust and behavior are prompting businesses and investors to focus on Responsible AI. A notable example of a Norwegian energy trading company faced negative sides of AI, such as issues related to data legitimacy, quality data management, and accountability concerns, underscoring the importance of a robust AI ethical framework.
This is why Pega strongly commits to five core AI ethical framework principles to develop Responsible AI:
- Fairness: Pega AI ensures unbiased, balanced, and factual data output that maintains fairness for all groups.
- Transparency: AI-powered decisions should be explainable and comprehensible to human audiences.
- Accountability: Fosters an organizational culture where every department must hold themselves accountable for accountability in AI and ensure it conforms to a high standard.
- Robustness: AI models should be trained on diverse data, inputs, scenarios, and conditions to enhance reliability and effectiveness in real-world applications.
- Empathy: This principle aligns AI with social and ethical norms.
Building Responsible AI Applications with Pega
Ensuring bias mitigation and data quality are crucial for organizations to avoid risks like regulatory violations, missed opportunities, customer churn, and loss of consumer confidence and credibility. In industries such as health and finance, it can significantly impact organizations. For example, a leading technology organization and its financial partners landed in a soup when its credit card offered lower credit limits to women than their spouses, significantly tarnishing the company’s brand image and customer trust.
Identifying the obvious aspects of discrimination, like age, gender, ethnicity, or religion, is easy. However, some biases are hidden in data like political affiliation, income, net worth, inadvertently erring your analytics. This results in poor decision-making and missed business opportunities. Clean data is thus essential to collecting quality data.
Pega’s Responsible AI helps you see through data bias. It assists you to have better customer understanding, adding more value to each customer interaction:
Ethical Bias Check: Pega’s Ethical Bias Check proactively detects hidden data biases, empowering you to refine algorithms for neutral, fair, and balanced outcomes. The feature runs bias tests for every strategic data across all channels, enabling informed decision-making with minimal disparities. Pega uses advanced ML and LLM models to develop and train models. The risks of potential AI bias are ever-present. For example, AI bias in healthcare leads to racial bias, reinforcing treatment disparities. In one instance, computer aided diagnosis systems showed higher inaccuracies results for black patients than white patients.
Checking AI bias is crucial; Pega’s Ethical Bias Check offers bias testing as a default action. Additionally, it offers checking flexibility that helps you refine your app development strategy in terms of fairness and performance.
Pega T-Switch: AI transparency, accountability, and explainability are crucial for organizations to adhere to regulatory norms and gain customer trust. Pega T-Switch helps you do just that. It gives you control of your AI deployment, allowing you to determine how and to what extent you want AI-driven operations.
Following the accusation against OpenAI regarding the lack of transparency over collected data for model training and IP rights validation, GDPR and EU laws on AI have become stringent. Pega T-Switch helps businesses to strike the right balance between regulations and automation, fostering AI transparency and explainability.
Benefits of Implementing Pega’s Responsible AI
Implementing Pega’s Responsible AI ensures your business experiences the following benefits:
- Achieve Users and Stakeholders Trust: Get customer trust. Interaction with Responsible AI systems provides customers with a sense of fairness and transparency devoid of ethical concerns. A 2024 Gartner study reveals a ‘trust gap’ between customers and AI. Pega AI is proactively bridging this gap.
- Ensure Fair and Inclusive Outcomes: Pega Responsible AI ensures it serves everyone without bias.
- Stay Updated with Policies and Regulations: Responsible AI ensures your AI-powered apps adhere to the latest regulations, policies, and legal frameworks. This helps you navigate legal challenges and unwanted fines.
- Enhanced Risk Management: The AI promptly addresses and mitigates risks, including reputational, ethical, and possible legal accountabilities.
- Make AI-Powered Informed Decisions: With Pega AI, you can streamline and accelerate the decision-making process as you quickly consider multiple factors and suggestions.
The Future of Responsible AI
Having a clear vision and strategy to implement and incorporate AI is essential to ensure its safety and long-term benefits of AI:
The AI market is expected to reach USD 15 trillion by 2030. Its widespread use across different industries, including manufacturing, finance, and healthcare, highlights the rapid pace at which it has become an undeniable force of transformation. However, a study shows that 61% of AI professionals have seen AI biases. Such biases include hiring discrimination based on gender and age, mortgage approval issues based on color, and so on. For example, people of color are often denied mortgage approvals at rates 40-80% higher than white applicants, often due to historical data reflecting inequal income, employment history, age, and other socio-economic variables. Consequently, these concerns have drastically increased the importance of Responsible AI.
Explainable AI has emerged as an important AI development principle. Its market value is projected to grow by 20.9%, $16.2bn by 2028. This shows the rising interest in ML and LLM models with data interpretability. Companies around the world are realizing that privacy and safety are necessary to gain customer trust and safeguard business information.
As regulatory and legal frameworks around AI continue to evolve, it is evident that more companies need to emphasize Responsible AI. Evoke’s Pega experts understand these challenges. Thus, the goal of Evoke-Pega collaboration is to develop cutting-edge applications with Pega Responsible AI.
Our successful partnership with Pega has enabled client companies to successfully automate work permits to accelerate incident resolution, prevent incidents with high-end rig operating process automation, and improve business process excellence by 6x, reducing technology costs by 50%.
In conclusion, Responsible AI is the ‘next big thing’ and it is a necessity. A robust Pega AI ethical framework empowers your business to leverage AI responsively, guaranteeing long-term success. Connect with Evoke’s Pega experts today to learn how Pega’s Responsible AI can accelerate smart app development while driving business growth ethically and securely.
