Responsible AI is ROI: The critical role of AI observability | By The Digital Insider

on

If you work with AI, you already know this: the world changed in 2023. When ChatGPT 3.5 dropped, it felt like we all got smacked in the face with just how powerful generative AI could be. 

Businesses everywhere started scrambling to integrate it into… well, everything.

I’m Dan Brock, VP of Customer Success at Fiddler AI. I’ve spent my career in different roles across the tech industry, but joining Fiddler – where we focus on AI observability and responsible AI – has been one of the most exciting moves I’ve made. Why? Because the stakes have never been higher.

We all want AI to deliver better business outcomes and help society in meaningful ways. But AI comes with failure modes that are getting harder and harder to rein in. And here’s the truth I’ve learned: responsible AI isn’t just the right thing to do – it’s a direct driver of ROI.

That’s what I want to talk about: why AI observability is the foundation for trust, and why trust is the currency that determines whether AI drives business success… or stalls.

So, let’s dive in.

The AI adoption boom and its risks

Before generative AI took center stage, AI adoption was relatively flat. According to a McKinsey study, the number of organizations using AI in at least one business function was pretty stable.

Then, ChatGPT 3.5 arrived. Almost overnight, adoption shot up to 72% of organizations applying some form of AI within their business. McKinsey estimates this wave of AI could unlock $4.4 trillion in economic value for the global economy.

In sector terms, we’re talking about banking seeing $340 billion in impact, while retail and CPG (consumer packaged goods) will see around $660 billion. 

But here’s the other side of the coin: AI risks are also scaling.

Some organizations rushed into deployment only to regret it. Remember the Air Canada incident? Their chatbot hallucinated a reimbursement policy, and because it was acting as an official agent, the company had to honor it. That’s a brand hit no one wants.

And that’s just one example. Hallucinations, biased outputs, unsafe or toxic responses, data leakage – these aren’t rare “edge cases” anymore. They’re real failure modes that can erode customer trust and damage a brand in minutes.

The information age and entrepreneurial-driven AI regulation

Ana Simion outlines how entrepreneurship is playing an important role in the development of AI regulation within the UK and beyond.

The trust gap in AI

Here’s the reality: if AI systems aren’t trusted, they won’t be adopted.

Trust is a simple human truth. If you talk to someone and consistently get incorrect, irrelevant, or unsafe responses – or if it takes too long for them to reply – you stop engaging. AI systems are no different.

At Fiddler, we say “Responsible AI is ROI” because adoption follows trust. Without trust, AI initiatives stall. With it, they accelerate.

Our customers are telling us loud and clear what trust means to them. They expect:

  • Data security: Is the data secure? Is access restricted to the right people?
  • Grounding: Are answers backed by verified sources?
  • Data masking: Is personal information hidden or redacted when it should be?
  • Jailbreak protection: Can we stop malicious attempts to trick the model?
  • Toxicity detection: Are we catching harmful or offensive content?
  • Data retention policies: Is data being stored only as long as it should be?
  • Audit trails: Can we see who did what, when, and why?

These are the building blocks of trust in AI.








#2023, #Adoption, #Agent, #Ai, #AIAdoption, #AIRegulation, #AiRisks, #AISystems, #Air, #Articles, #Audit, #Banking, #Bias, #Billion, #Building, #Business, #Canada, #Career, #Chatbot, #ChatGPT, #Content, #CPG, #Data, #DataLeakage, #DataSecurity, #Deployment, #Detection, #Development, #Economic, #Economy, #Edge, #Events, #Focus, #Form, #Foundation, #Gap, #Generative, #GenerativeAi, #Global, #GlobalEconomy, #GovernanceEthics, #Hallucinations, #How, #Human, #Impact, #Incident, #Industry, #InformationAge, #It, #Jailbreak, #McKinsey, #Members, #MembershipContent, #Model, #Observability, #One, #Organizations, #Other, #Policies, #Policy, #Read, #Regulation, #Reports, #ResponsibleAI, #REST, #Retail, #Retention, #Risks, #ROI, #Roles, #Salary, #Scaling, #Security, #Society, #Study, #Success, #Tech, #TechIndustry, #Templates, #Toxic, #Toxicity, #Trust, #UK, #Us, #Wave, #Work, #World
Published on The Digital Insider at https://is.gd/0jvyHR.

Comments

Post a Comment

Comments are moderated.