Deloitte Study: C level Leaders Prioritize Ethical Decision Making to Guide the Development and Use of AI

NEW YORK, Aug. 6, 2024 - Deloitte's newly released study, "Leadership, governance and workforce decision-making about ethical AI," found C-level leaders are implementing strategic governance around AI to ensure the ethical use and development of this technology, and most (89%) believe these ethical governance structures will support their organization's ability to innovate on technology.

Deloitte's Technology Trust Ethics practice surveyed 100 C-level executives to understand their decision-making priorities around artificial intelligence (AI), while assessing confidence in their organizations' existing ethics frameworks and the impact of applying systematic governance in the use of AI. Survey findings point to a human-first approach to regulation, with leaders largely focused on empowering their workforce with the right skills to ensure AI is used responsibly.

Key findings include:

• Seventy-seven percent of C-level executives surveyed are confident their workforce is well-equipped to make ethical AI decisions, however less than one-quarter (24%) allow professionals to make these decisions independently. This rises to 52% at companies earning $1 billion or more in annual revenues, whereas companies earning less than $1 billion primarily defer to top-down leadership directives.
• Training leads the way for governance structures related to ethical AI, with over three-quarters (76%) of respondents indicating their organization conducts ethical AI trainings for the workforce, and 63% saying that they conduct ethical AI trainings for their organization's board of directors. Trainings were followed by ethical AI review committees (46%) and ethical AI risk management frameworks (44%).
• When it comes to AI development and deployment, balancing innovation and regulation emerged as a top priority. Balancing innovation with regulation (62%) emerged as the top priority among respondents regarding ethical issues in AI development and use, followed by ensuring transparency in data collection and use (59%) and addressing user and data privacy concerns (56%).
• Organizations primarily leverage employee upskilling programs to fill new AI-related roles, followed by recruiting experienced hires. Over half of respondents indicate their organization hired or is planning to hire AI researcher (59%) and policy analyst (53%) roles related to ethical decision-making for AI. More prominently, they are sourcing skilled employees through internal training (63%) over experienced hire and academic pipelines.
• According to responses, AI is expected to have the biggest positive impact on factors such as supply chain responsibility and employee retention. Survey respondents cite supply chain responsibility (77%), brand reputation (75%), and revenue growth (73%) as the top three operational areas AI could positively impact in their organization. When it comes to their workforce, respondents predict AI to have a positive impact on employee retention (82%) followed by worker well-being (77%) and accessibility to professional education (77%).

Key quotes

"As organizations continue to explore opportunities with AI, it is encouraging to observe how governance frameworks have emerged in tandem, to empower workforces to advance ethical outcomes and drive positive impact," said Kwasi Mitchell, Deloitte US chief purpose & DEI officer. "By adopting procedures designed to promote responsibility and safeguard trust, leaders can establish a culture of integrity and innovation that enables them to effectively harness the power of AI, while also advancing equity and driving impact."

"The widespread development and use of emerging technologies like AI demands systems of governance that encourage the ethical application of these tools," said Beena Ammanath, executive director, Global Deloitte AI Institute and Trustworthy AI leader, Deloitte LLP. "As leaders look to strike a balance between innovation and regulation, ethically designed governance structures are important to hold both leaders and employees accountable in the responsible use of this technology. Recruiting and upskilling to build a prepared talent pool, providing employee trainings and establishing structures of leadership are some of the tactics that have emerged to drive AI innovation with an ethical focus."

About the survey

Deloitte's study, "Leadership, governance and workforce decision-making about ethical AI," was conducted as an online pulse survey of 100 corporate executives by an independent research company between June 20 and 26 2024. Respondents represented C-level, president, board member, and partner/owner roles at companies in the U.S. Company size ranged from under US $100 million to over US $10 billion in annual revenue.

The survey is a follow-up to Deloitte's "State of Ethics and Trust in Technology " annual report that assessed if and how ethical standards are being applied to emerging technology. To learn more about Deloitte's US Purpose & DEI Office or Technology Trust Ethics practice, including its framework to guide responsible decision-making in the design, operation and governance of technologies, visit www.deloitte.com.

About Deloitte

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's approximately 457,000 people worldwide connect for impact at www.deloitte.com.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

Public link

Please use the above public link if you want to share this noodl on another website.