Responsible AI: Adopting AI into audit techniques for effectiveness

What’s in today’s article?

• Why in News?
• About SAI20
• The Second SAI20 Summit
• Need for Responsible AI
• Responsible AI Stands on 4 Pillars
• The Objectives of the Engagement Group of SAI20 on Responsible AI
• Highlights of the CAG’s Address on Responsible AI

 

Why in News?

• As artificial intelligence (AI) is making “greater inroads” into governance, the Comptroller and Auditor General (CAG) of India said that Supreme Audit Institutions (SAIs) must prepare themselves for auditing AI-based governance systems.
• He was addressing the second SAI20 Summit of the SAI20 Engagement Group under the Indian Presidency of the G20.

 

About SAI20:

• The SAI20 Engagement Group of G20 was established during 2022 during Indonesia’s Presidency of the G20.
• The constitution of SAI20 stems from a recognition of the role of SAIs in promoting the good governance, efficiency, accountability, and transparency of public administration, and supporting SDG implementation.
• This mandate is achieved through engaging actively and effectively with the entire spectrum of stakeholders, from audited entities and governments to media and the civil society.

 

The Second SAI20 Summit:

• It began in Goa under India's G20 Presidency and aligned with the main theme of the Indian Presidency of G20 which is `VasudhaivaKutumbakam` - the World as One Earth, One Family and One Future.
• According to the Indian CAG, the SAIs has a crucial role to play in the audit of Blue Economy and Responsible AI to optimise their positive impact on humankind.

 

Need for Responsible AI:

• AI refers to information-processing systems and technologies that integrate models and algorithms to learn and to perform cognitive tasks leading to outcomes such as prediction and decision-making.
• Machine Learning (ML is based on the creation of algorithms) and Deep Learning [DL algorithms learn or improve themselves through layers of Artificial Neural Networks (ANNs)] are two key techniques/subsets of AI.
• The public sector entities have started using AI, especially ML algorithms, to improve the efficiency of public services delivery at lower costs.
• However, the significant risks associated [biased data used as inputs to an algorithm, inner workings (black-box nature) of the algorithms] with use of AI in delivery of public services also need to be carefully considered.

 

Responsible AI Stands on 4 Pillars:

1. Organisational democratisation that empowers and encourages individuals to raise concerns;
2. Systems that enable AI to flourish;
3. Systems and platforms that are trustworthy and explainable by design; and
4. Articulation of responsible AI Mission that is anchored in organisational and ethical values.

 

The Objectives of the Engagement Group of SAI20 on Responsible AI:

• Governance issues - fairness, transparency, accountability, data privacy and security, human rights and safety - to be examined during the audit of AI systems.
• Performance issues - economy in terms of reduced costs, efficiency in terms of productivity gains, effectiveness in terms of achievement of intended objectives - to be examined during the audit of AI systems.
• Leveraging AI for more effective and efficient audit, through its use in different stages of the audit process.
• Mechanisms for capacity development and knowledge sharing across SAIs, related to audit in environments with extensive use of AI and for application of AI in audit.

 

Highlights of the CAG’s Address on Responsible AI:

• The reality of AI has come a long way since the term was first coined in 1956 by John McCarty at a workshop held in Dartmouth.
• Today, there is a curiosity and belief that AI can help countries achieve development goals, impacting economic growth while simultaneously disrupting labour markets.
• For example, ChatGPT compelled us to recognise it and also triggered the debate of its utility vis-à-vis its risks.
• Considering the power, possibility and perils of AI, it is essential that policy makers put in place processes to responsibly harness the potential of this technology.
• With AI making greater inroads into governance, SAIs must inevitably prepare themselves for auditing AI based governance systems.
• Simultaneously, SAIs must look for opportunities to adopt AI into their audit techniques to increase their effectiveness.
• The auditor must ensure that Al-based decisions do not result in exclusions, biases or violations of privacy.
• The primary concern for the auditor is to ensure data accuracy, reliability and integrity, backed by an independent and robust system that periodically collects and collates data.

 

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Q1) What is ChatGPT?

ChatGPT is an artificial intelligence chatbot developed by OpenAI based on the company's Generative Pre-trained Transformer series of large language models.

 

Q2) What is the blue economy?

According to the World Bank, the blue economy is the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem.

 

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Source: Look for ways to adopt AI into audit techniques for effectiveness: CAG