Ethical Risks of Generative AI Still a Major Concern Amid Rising Adoption: Deloitte Report

Over half (54%) of professionals surveyed believe technologies like Generative AI pose the highest ethical risk compared to other emerging technologies

While widespread use of Generative AI (GenAI) has broadened awareness of its potential benefits, concerns about the risks its misuse poses to businesses and individuals remain top of mind, according to Deloitte‘s third annual report on the “State of Ethics and Trust in Technology.” Among the over 1,800 professionals surveyed for 2024’s report, 46% of individuals believe cognitive technologies have the potential to create the most social good when used responsibly, up from 39% in 2023. However, like last year’s report, over half (57% in 2023 and 54% in 2024) of respondents also said that cognitive technologies like AI and GenAI present the most severe ethical risks compared to other emerging technologies, underscoring the sustained need for ethical guidelines to govern its use.

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When it comes to the development of ethical guidelines for emerging technologies, just over one-quarter (27%) of respondents report their organizations have distinct ethical standards for GenAI. Report findings suggest organizations where ethical guidelines are absent or underutilized may continue to be exposed to risks and miss opportunities to enhance stakeholder trust and build social, reputational and financial value.

The study, led by Deloitte’s Technology Trust Ethics practice, surveyed over 1,800 business and technical professionals globally to understand how organizations value and implement ethical principles for emerging technologies. The practice interviewed 26 specialists and leaders across industries and within Deloitte to gather insights in support of the survey’s findings.

“The accelerated adoption of GenAI and other emerging technologies demands a collaborative approach among organizations, leaders, and professionals with diverse experiences and perspectives to define and implement appropriate ethical standards,” said Lara Abrash, chair, Deloitte US. “Future generations will look back on the decisions made today. It is important to honor the collective responsibility for those who will inherit the world shaped during this time.”

Key findings

Safety first: In this year’s survey, 78% of respondents selected “safe and secure” as one of the top three ethical technology principles, a 37% increase from respondents in the previous year’s survey. When it comes to concerns around AI, respondents highlighted data privacy as the most significant, with 40% of respondents ranking data privacy as their top concern.

Organizations face challenges building trust among employees: Trust in one’s organization and its emerging technologies may be declining and more pronounced in younger generations. In 2023, 87% of millennial and 81% of Gen Z respondents reported buy-in to their organization’s ethical messaging; in 2024 those figures decreased to 77% and 65% respectively. Overall buy-in fell from 89% to 81%, indicating employees of all ages are aligned with their organizations but may decline if left unaddressed.

Reputation is top of mind: When asked to rank the potential negative outcomes to organizations if ethical standards are not followed for emerging technologies, respondents rated reputational damage (82%), financial damage (66%), and regulatory penalties (60%) as their top three concerns.

Trainings and tools outpace other ethics approaches: Investment in technology ethics training is on the rise, with 80% of respondents required to complete mandatory technology ethics training, an increase of seven percentage points since 2022. Furthermore, two-thirds (67%) of respondents reported their organization provides internal tools to familiarize employees with AI. However, diverse focus groups appear to be less utilized in enacting ethical technology standards with 36% of respondents indicating their organizations used diverse focus groups in the development of standards, the same response rate as last year.

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“Widespread availability and adoption of GenAI may have raised respondents’ familiarity and confidence in the technology, driving up optimism about its potential for good,” said Beena Ammanath, executive director, Global Deloitte AI Institute and Trustworthy AI leader, Deloitte LLP. “The continued cautionary sentiments around its apparent risks underscores the need for specific, evolved ethical frameworks that enable positive impact. Designated ethics leaders, diverse working groups, trainings and internal AI tools are methods that should be applied concurrently to help increase the pace and success of ethical guidance efforts.”

Deloitte’s Technology Trust Ethics practice is part of the US Purpose & DEI Office and focuses on embedding ethical decision-making into the development and use of emerging technology, to build trust in those technologies and expand the equitable opportunities of a tech-savvy world to all people.

The practice developed a Technology Trust Ethics framework to help organizations assess the ethical implications of emerging technologies and guide responsible decision-making in the design, operation and governance of those technologies.

Methodology
Deloitte’s research included interviews in April and May 2024 with 26 executives and surveyed more than 1,800 business and technical professionals involved in developing, consuming or managing emerging technologies. Respondents represented industry sectors including technology, media and telecommunications; financial services; life sciences and health care; consumer; energy, resources and industrials; academia; government and public service; and nonprofit. The survey spanned the impact of Generative AI on organizations, the understanding of and value placed on ethical principles for emerging technologies, and mechanisms to implement ethical behavior throughout their organizations.

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