Artificial intelligence (AI) and data are two major forces reshaping our personal and professional lives. Significant advances in AI, combined with a massive surge in data, are transforming decision-making processes at an unprecedented pace.
“It’s estimated that 90% of the world’s data was generated in the last two years alone, with another 175 zettabytes projected by next year”, says Kari Mastropasqua, Chief Decision Intelligence Officer at Equifax.
With increased digital reliance comes heightened vulnerability, as managing information online and preventing fraud like identity theft and scams becomes more challenging. How companies can adopt AI responsibly and manage data ethically to retain customer trust, enhance decision-making, boost personalisation efforts, and drive innovation and growth was the focus of a dynamic panel discussion at the 2024 Equifax Innovation Day.
Chief Scientist at the Gradient Institute, Dr. Tiberio Caetano; Reinventure Group Co-Founder and MD Simon Cant; and CDR architect Dr. Scott Farrell shared their perspectives with Chief Decision Intelligence Officer at Equifax, Kari, moderating the panel.
Disruption vs. sustaining innovation
Simon Cant distinguished between disruptive and sustaining innovation. Sustaining innovation is typically a better product at a higher price, whereas disruptive innovation is typically a worse product than what is currently available, but more accessible and affordable. Blockchain is an example of disruptive innovation and AI has elements of being sustaining and disruptive.
Balancing innovation with purpose is critical as AI and blockchain evolve. In an era where authenticity is hard to ascertain, blockchain’s ability to store unmodifiable, verifiable data will be essential for maintaining information integrity. Companies need to be mindful of unchecked AI innovation and adopt purpose-driven AI strategies.
The need for thoughtful regulation
Dr. Tiberio Caetano emphasised that AI has progressed more in the past decade than in the previous 60 years. The compute power needed to train state-of-the-art machine learning models grew exponentially during that time.
While regulation is essential in this fast evolving landscape, poor regulation could hinder innovation. The challenge for regulators is to manage the societal impacts of AI with thoughtful regulation that takes into account the uncertainty about how more intelligent AI will become.
Concern was expressed about adopting Europe’s AI regulatory approach wholesale, as each country has its own cultural and economic landscape requiring tailored regulations. There was agreement that innovation requires a flexible regulatory dynamic that allows for iteration and adaptation while managing AI’s societal impacts. Striking the right balance is crucial, especially as AI's development continues to outpace expectations.
The unpredictability of AI’s future
A recurring theme was the uncertainty around AI’s future capabilities. While this unpredictability presents challenges, it also creates vast opportunities for those willing to embrace risk and invest in AI’s potential. Businesses and governments must remain informed and agile to harness AI’s power while mitigating its risks.
Common standards across borders
Dr. Scott Farrell called for improved communication and collaboration between the public and private sectors, as well as academia, to address AI’s regulatory complexities. As data knows no national boundaries, there were suggestions for uniform technological standards to be adopted across borders and adapted to fit each country’s values and needs.
Challenges with CDR
The panel discussed the challenges and potentials of the Consumer Data Right (CDR). While the CDR has faced criticism, the panel agreed that its true value lies in its long-term potential. Integrating CDR with innovations like financial management apps, digital identity and payments will simplify processes for both businesses and consumers, unlocking its full potential in Australia’s digital economy.
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