AI advancements, risks and regulation: Implications for business and corporate organizations

Abstract

That AI is going to affect businesses and how they are conducted, is now clear and unambiguous; however, the extent to which this technology will impact business remains to be seen. Considering a wide variety of AI applications, the implication is that several benefits arise from the use of such technology. Improved health care, safer cars and other transport systems, improved machine maintenance, as well as increased production output and quality, are some of the benefits and opportunities AI offers. Nevertheless, risks of incorporating AI that businesses need to be aware of include job losses, privacy, security and reputational threats; hence, the need for regulation of the way AI is transforming businesses. Excessive reliance on AI and the need to protect smaller businesses, which cannot afford AI, from being disadvantaged competitively are some factors that make regulation imperative for the AI technology. This paper presents a literature review of the opportunities, risks and regulation imperatives for AI in Big Tech companies including AI ethics in Africa and consequences of China’s advancement in facial recognition technology. The implications are that while the AI technology should be embraced and advanced, the ethics and risks associated with the technology should be reflected on and incorporated in the development of the technology, particularly in Africa.

To cite: Nohumba, I., Nyambuya, C. T. & Nyambuya, G. (2023). AI advancements, risks and regulation: Implications for business and corporate organizations. Journal of Management & Administration 17, 45–59.
DOI: 10.5281/zenodo.10863833