Companies with a focus on artificial intelligence (AI) technology might face a land grab in the public sector, if experts’ predictions are correct.
AI is already being used by a range of publicly-listed ASX companies, such as BrainChip (ASX:BRN), which makes technology that aides surveillance, and LiveTiles (ASX:LVT), which has an array of AI solutions designed at automating tedious back-end processes.
And global research house McKinsey says that government agencies are rapidly taking notice — see the Australian government’s 2018 pledge for nearly $30 million in research funding for AI and machine learning.
AI technology will allow government departments to perform more efficiently while improving outcomes and keeping costs down, so increased adoption presents a big opportunity for small AI tech companies.
But, in a sector rife with players, how does one company stand out from another? McKinsey identified five areas that government agencies need to check off in order to nail public trust — so companies will need to build these factors into their DNA.
- Accuracy — creating systems that predict the best or most efficient outcome when faced with a decision
- Fairness — ensuring equality, which McKinsey says can be achieved “through a set of nuanced de-biasing practices used in the field of data science”
- Explainability — technology and its use cases need to be able to be justified to the public in plain language
- Stability — AI and machine learning models need to be regularly recalibrated to ensure stability in outcomes
- Adoption — companies need to develop best-in-class technology before going to market to ensure fast, widespread adoption
“Sometimes, in the rush toward employing AI, it is easy to ignore the limitations and risks associated with algorithms,” McKinsey said. “These limitations must be understood, managed, and mitigated as needed.”
This content is produced by Star Investing in commercial partnership with BrainChip and LiveTiles. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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