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ACCA Strategic Professional · Strategic Business Leader · Machine learning, AI and robotics

Brennan Retail's board is approving a recruitment AI tool bought from a vendor. Directors are concerned that if the tool discriminates against candidates, the company will be blamed even though the vendor built the algorithm. What principle is the board relying on in being concerned?

Accountability stays with the organisation that deploys the AI. Buying a tool from a vendor does not transfer responsibility for discriminatory outcomes to the supplier in the eyes of regulators and stakeholders. The board should therefore perform due diligence, set contractual safeguards and monitor the tool's results.

  1. AAccountability for AI outcomes remains with the organisation deploying it and cannot be delegated to the supplierCorrect
  2. BLiability transfers fully to the vendor once a contract is signed
  3. CResponsibility lies only with the data scientists who trained the model
  4. DResponsibility applies only if the tool was developed in-house

Explanation

Organisations deploying AI remain accountable to stakeholders and regulators for outcomes, so governance must include due diligence, contractual assurances, testing and ongoing monitoring of third-party tools. Outsourcing development does not outsource accountability.

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