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Are councils clear on the ethics and governance challenges of AI?

Local authorities are responsible for delivering services that support some of the most vulnerable people in society. However, they also have a legal duty to balance their budgets, amid increasing financial pressures.

Many local authorities have enthusiastically embraced the opportunities afforded by AI and other digital technologies to achieve significant savings and make more effective use of limited resources.

A recent example is Bristol City Council's use of risk profiling algorithms to help inform decisions about where social workers and family support workers would be best deployed. Yet AI also presents a challenging set of risks for the public sector, including concerns about ethics and governance.

The Guardian recently reported that one in three councils are using AI systems for automated guidance relating to welfare matters. However, concerns have been raised about the reliability of these systems, and about whether there is sufficient human oversight and a genuine ability to challenge automated decision-making.

The Local Government Association says data should only ever be used by councils "to inform decisions and not to make decisions".

Public concern about AI accountability

The UK's Office for Artificial Intelligence (OAI) has identified many of the potential benefits of AI for the public sector.

These include:

  • generating more accurate information
  • forecasts and predictions
  • simulating policy impacts pre-implementation; and
  • automating simple, manual tasks to free up staff.

Yet our latest whitepaper, Artificial intelligence in the public sector: the future is here, reveals the public has significant reservations about AI being used in relation to service users.

Nearly half (45%) of the public don't like the idea of humans not being involved in decisions that affect them. Just 16% approve of AI's use for elderly care, and even fewer (9%) support its use with vulnerable children.

One in four people are also worried about reduced human accountability and an emphasis on logical rather than ethical decision-making. Before they can reap the benefits of AI, local authorities must first assess its potential impact on service users, particularly the most vulnerable, and they should be ready to explain their processes.

No matter how sophisticated - or complicated - the technological tools they use, local authorities still have a responsibility to be transparent and accountable.

Taking a considered, long-term view on AI

Rod Penman, Head of Public Services, Zurich Municipal, says: "It is important that local authorities look beyond the short-term financial savings and efficiency benefits of introducing AI. What could be the impact of any AI failure on your most vulnerable service users?" As an insurer, we're keen to support local authorities in managing the risks involved when embracing AI technologies. Our specialist risk consultants are happy to discuss the challenges your organisation could face. We can help with auditing your innovations in development, checking ethical and governance frameworks, as well as legislation compliance, and other key challenges. For more information, download our new report, Artificial intelligence in the public sector. Creating an ethical AI framework Defining an ethical framework can aid local authorities when assessing the potential impact of new projects involving AI. The Office for Artificial Intelligence encourages public bodies to consider the following points:
  • Data quality - successful AI projects depend on high quality data
  • Fairness - are models based on relevant, accurate and generalisable datasets? Have AI system users been trained to deploy it responsibly and without bias?
  • Accountability - who is responsible for each element of the model's output? How will designers and implementers be held accountable?
  • Privacy - does it comply with appropriate data policies, for example the General Data Protection Regulations (GDPR) and the Data Protection Act 2018?
  • Explainability and transparency - can you explain to stakeholders how the AI model reached its decision?
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