Kearney And Egon Zehnder Reveal Four Main Risks In Using AI

Illustration of artificial intelligence (photo: Freepik)

JAKARTA A joint survey from Kearney and Egon Zehnder, revealed that, although AI is considered the main driver of business evolution and organizational models, AI has also raised concerns regarding job replacement and data privacy violations.

According to another study conducted by Kearney, AI is projected to provide substantial economic benefits in the ASEAN region. By 2030, AI is expected to contribute up to 1 trillion US dollars to GDP ASEAN, with Indonesia itself contributing 366 billion US dollars.

"Integration responsible for AI requires an in-depth technical understanding and effective risk mitigation, we must not ignore the potential risks associated with AI use," said Kearney Indonesia President Director and Partner Shirley Santoso in a statement.

While executives are optimistic about the benefits of AI for efficiency and innovation, they also highlight the possibility of labor eviction and data privacy risks.

The report states that the majority of executives agree AI will have an impact on organizations in five years, and almost all emphasize the importance of understanding leadership of this technology.

To that end, this report states that there are at least four key risks that leaders must prioritize, among others:

Data Bias: The quality of the AI model output is directly related to the data being trained. If the training data does not reflect the uniform diversity of the real world, AI can produce biased results.

Data Hallucination: The generating AI model is very accurate but remains 100% sure even when it is wrong. This requires the process of human involvement to continue verifying model results.

Swelling costs: Along with the increasing volume of data stored by the AI platform, collection, storage and processing costs are also increasing.

Dependence and Reliability: There are concerns about dependence on AI and its reliability.