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AI-Based Solutions May Pose Risk to Business

These deficiencies could undermine the decisions, predictions, or analysis AI applications produce, subjecting the company to competitive harm, legal liability, and brand or reputational harm

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AI scenarios present ethical issues ranging from privacy, human rights, employment or other social issues.
The AI-based system named "Philyra" can learn about perfume formulas, raw materials, historical success data and industry trends. Pixabay
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In a message to investors, Microsoft has said that the challenges to adoption of Artificial Intelligence (AI)-based solutions by customers as well as changes to trade policy or agreements as a result of populism, protectionism or economic nationalism may pose a risk to its businesses.

In a regulatory filing on Friday, Microsoft said that the ability to convert data into AI drives its competitive advantage, but issues in the use of AI in its offerings may result in reputational harm or liability.

The Redmond, Washington-headquartered tech giant, which does business in 200 countries, said inappropriate or controversial data practices by Microsoft or others could impair the acceptance of AI solutions.

Microsoft REConsiders Using AI, Pixabay
Microsoft REConsiders Using AI, Pixabay

These deficiencies could undermine the decisions, predictions, or analysis AI applications produce, subjecting the company to competitive harm, legal liability, and brand or reputational harm.

It also pointed out that some AI scenarios present ethical issues ranging from privacy, human rights, employment or other social issues.

Also Read: Microsoft Will Become an AI First Industry, Will Improve Lives, Says CEO

Moreover, the proliferation of social media may increase the likelihood, speed, and magnitude of negative brand events, it added.

The tech giant also warned how emerging nationalist trends in specific countries may significantly alter the global trade environment. (IANS)

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Microsoft Wants Regulation For Facial Recognition Technology To Start in 2019

Microsoft is one of several companies playing a leading role in developing facial recognition technology

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A sign for Microsoft is seen on a building in Cambridge. VOA

Given the potential for abuse of the fast advancing facial recognition technology, governments across the world need to start adopting laws to regulate this technology in 2019, Microsoft President Brad Smith has said.

“Unless we act, we risk waking up five years from now to find that facial recognition services have spread in ways that exacerbate societal issues,” warned Smith in a blog post on Thursday.

“The time for action has arrived,” he said, adding that the industry must also exercise restraint while using this technology.

Speaking of the benefits of the technology, the Microsoft President mentioned that police in New Delhi recently trialled facial recognition technology and identified almost 3,000 missing children in four days.

Similarly, historians in the US have used the technology to identify the portraits of unknown soldiers in Civil War photographs taken in the 1860s.

Researchers successfully used facial recognition software to diagnose a rare, genetic disease in Africans, Asians and Latin Americans.

And in October, the National Australia Bank designed a proof of concept to enable customers to withdraw money from an Automatic Teller Machine using facial recognition and a PIN.

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Regulation for facial recognition technology must start in 2019: Microsoft. Pixabay

But at the same time, the potential for abuse of this technology is huge, Smith said, adding that certain uses of this technology could lead to biased decisions and discrimination.

Moreover, the widespread use of this technology can lead to new intrusions into people’s privacy, he said.

“The use of facial recognition technology by a government for mass surveillance can encroach on democratic freedoms,” Smith added.

Also Read- Fujifilm Launches its Medium Format Mirrorless Camera in India

“While we believe that new laws and regulations are indispensable, we also recognise that they are not a substitute for the responsibility that needs to be exercised by tech companies,” he said.

Microsoft is one of several companies playing a leading role in developing facial recognition technology.

The company, Smith said, would start adopting new principles to manage the issues surrounding facial recognition technology in the first quarter of 2019. (IANS)