The Alignment Problem of Artificial Intelligence
How can one ensure that AI models and algorithms operate in a way that aligns with both corporate goals and legal and ethical standards?
Unintended actions by Artificial Intelligence can have significant legal and ethical consequences. An example is the risk of an unintended price cartel due to AI in the online trading industry. Here, major retailers deploy AI systems to adjust prices in real-time and respond to competitors. This leads to a constantly changing environment in the market, where the AI systems try to find an optimum for their respective companies.
The Challenges of AI Integration
Artificial Intelligence can learn that it’s not always better to drastically lower prices to achieve higher profits. Often, more profit can be made by maintaining stable prices or even increasing them by subtly coordinating them with other AI systems. This can lead to them collaborating and keeping prices higher, even if the companies don’t directly discuss it. Integrating AI into business strategies offers many advantages but also presents significant challenges in adhering to laws and regulations.
The question of who is responsible – the company, the developers, or nobody because no clear agreements were made – is not easy to answer. An example of this is the case of “Trod Ltd./GB eye Ltd.,” where companies collectively set prices on Amazon UK and formed a price cartel. The British authority discovered that people had made these agreements. This case highlights the importance of monitoring and regulating Artificial Intelligence.
In Germany, algorithms played a significant role in antitrust investigations, such as in the case of the investigation against Lufthansa regarding flight prices. It was emphasized that a company’s responsibility continues despite using price algorithms.
Methods for Addressing the AI Alignment Problem
Most compliance programs are not prepared to deal with the challenges that Artificial Intelligence presents in business decisions. Companies must adapt their programs to recognize and mitigate the risks arising from AI. It is important to specifically train employees, so they are aware of these new challenges.
One way to monitor AI behavior could be to detect unusual actions or coordinated behavior and issue warnings. Moreover, it’s crucial to regulate AI through laws and standards. This addresses problems that arise when AI’s objectives do not align with human goals. The USA, China, and the EU have different views and approaches to AI regulation. For example, the EU is working on its own AI regulations.
Switzerland is taking a step back for now, watching how other countries are handling AI regulation. In general, those in charge of making sure rules are followed have several ways to deal with the challenges that come with Artificial Intelligence.
Possible Measures to address AI Compliance Challenges include:
- Voluntary commitments by industry, as already practiced in the USA
- Prohibitions on certain algorithms that are susceptible to the alignment problem
- Clear liability arrangements for decisions made by AI systems
- Mandatory transparency and disclosure obligations for companies regarding the functionality of their AI systems
- Development of ethical guidelines at a national or international level for AI development
- Establishment of specialized regulatory authorities to monitor and intervene in AI usage across various industries
Ten Actions recommended for Compliance Officers
To be well-prepared for the AI alignment problem in the future, the following approaches are recommended:
1.
Continuous education and interdisciplinary teams for up-to-date AI knowledge
2.
Preference for transparent algorithms for traceable decision-making
3.
Regular internal and external audits of AI systems
4.
Integration of feedback mechanisms for continuous adjustment of the AI
5.
Comprehensive risk assessment before implementing new AI systems
6.
Creation of an AI ethics code with clear guidelines
7.
Participation in AI compliance networks and working groups
8.
Establishment of clear communication channels for concerns regarding AI behavior
9.
Continuous monitoring of AI systems and adaptation to guideline changes
10.
Creation of emergency plans for unexpected or harmful AI behavior
1.
Continuous education and interdisciplinary teams for up-to-date AI knowledge
2.
Preference for transparent algorithms for traceable decision-making
3.
Regular internal and external audits of AI systems
4.
Integration of feedback mechanisms for continuous adjustment of the AI
5.
Comprehensive risk assessment before implementing new AI systems
6.
Creation of an AI ethics code with clear guidelines
7.
Participation in AI compliance networks and working groups
8.
Establishment of clear communication channels for concerns regarding AI behavior
9.
Continuous monitoring of AI systems and adaptation to guideline changes
10.
Creation of emergency plans for unexpected or harmful AI behavior
Conclusion
To solve the AI alignment problem, a comprehensive approach is necessary. Here, compliance officers, who are employees responsible for ensuring that companies adhere to laws and regulations, play a crucial role. They must ensure that AI systems are used in compliance with the law, ethically, and in alignment with the company’s values. For this, they need the right resources and tools supported by AI. Artificial intelligence will bring sustainable and profound changes to society.
The preceding text is a highly condensed summary of the article “The AI Alignment Problem: Challenges and Practical Recommendations for Compliance Officers” from the magazine ‘Rechtrelevant‘ by Dr. Roman Zagrosek, CEO of Compliance Solutions.
