Issue AI adoption in decisions is outrunning organizational oversight

Summary

Deloitte warns that the use of AI in decision-making may be moving faster than organisations can oversee it. As a fundamentally new technology, AI raises distinct problems. It can be hard to trace responsibility from a decision to its consequences when algorithms are opaque, and people may feel less ownership of decisions AI makes and even act less honestly when delegating to it. AI agents operate at speeds and scales that strain traditional controls, many managers are not ready to supervise AI and many executives lack the literacy to help. Organisations also often lack workable ethical frameworks. Insurers are reluctant to cover corporate AI use, and regulation keeps changing.