ETHICS

MATURITY

CONTINUUMDiscover why AI Ethics matters to your company'ssuccess and how to put it into action

By striving to design and develop AI with ethics at the core,startups can maximize their impact and continue to grow in amarket environment where values are becoming increasinglyimportant to success.

To aid in this process, the Ethics Maturity Continuum has beendesigned to quickly assess a company’s level of ethics maturityand identify areas for improvement. It prioritizes agility andaction, enabling users to build concrete strategies for sustainableAI systems and track development overtime. Most importantly, itempowers startups to embed ethics from the very beginning,resulting in stronger products, happier customers and morefavorable exits.

In this day and age, successfuloperationalization of ethics in AI-drivenstartups has become the competitive edge.

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In recent years, the impressive advances in the capabilities andapplications of AI systems have brought the opportunities and risks ofAI for society into sharper focus. In order to maximize the benefits andmitigate the risks, the field of AI Ethics has quickly spread through thedevelopment of tools, frameworks, and Ethics as a Service productsdesigned to ensure that algorithms are built with ethical principles atthe core.

To aid in this adoption of ethics, the majority of global technologycompanies have deployed ethical frameworks and policies, whilemultiple governments have released similar high-level frameworks. Asenterprise and regulation begin to require ethical technology practices,the challenge becomes for startups to understand how to build thesepractices into the company and technology from the very beginning.

The Ethics Maturity Continuum consolidates the best practices of theseglobal frameworks and policies to determine the key factors for ethicaltech development for early and late stage startups. These key factorshave then been translated into a comprehensive model that provides amethod for assessing a startup’s ethical development along with clearactions points for improvement.

CONTINUUM BACKGROUND"AI ethics is a set of values, principles, and techniques thatemploy widely accepted standards of right and wrong to guidemoral conduct in the development and use of AI technologies."

- Alan Turing Institute

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Enhanced Product QualityIncorporating responsible AI practices throughout the productdevelopment lifecycle results in better alignment with customerwants and needs

Employee RetentionEthical practices significantly benefit talent acquisition,retention, and engagement, especially in the currentcompetitive labor market

SustainabilityFocus on value-sensitive design leads to betterdata management which reduces digital wasteand increases sustainable practices

Regulation readinessCompanies must stay ahead of AI regulation toremain competitive and active on a global scale

Increase GrowthEthics improves top-and bottom-line growth by increasingcustomer engagement, broadening revenue streams, andoffering procurement advantages in competitive biddingprocesses

Brand LoyaltyHeightened focus on the sector has increased the importance ofcustomer loyalty to brands they can trust

Responsible AI, when used to its full potential, is a source for competitiveadvantage. Building ethics into technology and product management has anumber of business benefits, including:

BENEFITS FOR STARTUPS

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BENEFITS FOR STAKEHOLDERS

PractitionersEstablishing bottom-upculture of ethical decision-making leads to confidence inproduct development andstreamlined collaboration

Board & InvestorsCreates consistent andmeasurable implementationof ethics that leads to anincrease in potential offavorable company exit

Executives & C-SuiteReduces long-term costs infixing technical problems aswell as attracts and retainstop-talent employees

INTERNAL

CustomersImplementing ethics buildscustomer trust and loyaltywhich reduces customer churn

UsersSmoother user experience forwider base of customers (i.e.design decisions factoring indiverse user-base and edgecases)

General PublicIntelligent consumers demandethical, safe, and privatetechnology. Public perceptionof technical tools is key inensuring their success

EXTERNAL

One of the most important elements to a startup’s ultimate success is itsrelationship to both internal and external stakeholders. Internally, the focus is oncreating a healthy work environment that will attract and retain top-talent whileincreasing strong decision-making to reduce costs and increase potential forfavorable exits. Externally, the purpose is to create a product that best serves ascalable base of customers while taking into consideration the impact of thetechnology on society at large. The implementation of ethics efficiently andeffectively supports the strengthening of both sides of these vital relationships.

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When someone is accountable it meansthey are answerable for the results of anaction after it has been performed. AIaccountability means that a companydeploying AI systems has designatedroles that are both answerable for theimpact of the AI systems as well asresponsible for AI governance withincompany processes.

Successful AI design focuses on creatingproducts that serve human-centricneeds, either on the individual orsocietal level. Intentional design goes astep further by ensuring significantthought and consideration has gone intounderstanding potential intended andunintended consequences of designingan AI product to serve such needs.

Unwanted bias occurs when systembased decisions are made usingindividual traits that should nototherwise correlate to the outcome (i.e.gender being used as a deciding factorfor job applicants). Fairness seeks tominimize instances of this unwantedbias and instead promote inclusiverepresentation in AI development.

AI has the potential to impact not onlyvast numbers of individuals but alsoshape the societies in which we function.It is therefore essential to consider theshort- and long-term effects theintroduction of an AI product will have,giving particular attention to thewellbeing of end-users.

Data is information on individuals andcollective behavior, which means usersmust be able to clearly understand howtheir data is being handled andprotected. In addition to transparentcommunication and robust security, theuser must feel that their informationremains as private as they so want, thecombination of which results in stronguser trust.

The Continuum is designed for startups and investors to be able to assess thelevel of maturity a company has achieved in operationalizing AI Ethics. Startupsare divided by Early (Seed-Series B) and Late (Series C+) Stage and then assessedon the following five criteria.

THE CONTINUUM FRAMEWORK

Accountability

Intentional Design

Fairness

Social Impact

Trust & Transparency

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BelowNo one in the company is currentlyresponsible for AI governance

AverageFounder(s) is responsible for AIgovernance

ExemplaryCompany has a separate Head ofProduct Management whoseresponsibility includes AI governance

Level of Maturity Action for Improvement

Founder(s) or CEO should immediatelyassume responsibility for AI governance

Founder(s) should create and hire forinternal position responsible for buildingthe company's AI governance protocols

Head of Product Management shouldestablish specific OKRs for AI governance

BelowCompany has established a Head ofProduct Management responsible for AIgovernance; but has no externalauditing or advisory

AverageCompany has a Head of ProductManagement responsible for AIgovernance and an AI Ethics advisor onthe Board of Directors

ExemplaryCompany has a C-level executiveresponsible for AI and is supported byan external AI Ethics advisor or board

Level of Maturity Action for Improvement

Head of Product Management establishesOKRs for AI governance that should beshared with external auditors and/oradvisors

Quarterly reports should be issued on AIgovernance OKRs and external advisors onAI Ethics should be secured

Early Stage Seed-Series B

Late Stage Series C+

Accountability

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Establish an assessment process tocontinually check for Accountabilityimplementation

BelowNo work has been done to understand anddocument unintended consequences of theproduct

AverageCompany has systematicallydocumented unintended consequences,along with supporting processes toperiodically evaluate the product forcustomer risks

ExemplaryCompany documentation of unintendedconsequences utilizes third partyframeworks, and is conducted withongoing assessment of risk impact forcustomers

Level of Maturity Action for Improvement

Review of unintended consequences shouldbe undertaken and completed within 60days

An intentional design review process thatassesses for unintended consequencesshould be established utilizing thirdparty frameworks

The intentional design review process isimplemented on an ongoing basis as partof the AI product management protocol

BelowCompany has issued clear documentationand reporting on risk and governance

AverageCompany generates regular quarterlyreporting on risk metrics, governance andvalues to Board of Directors

ExemplaryCompany generates regular quarterlyreporting and metrics on risk, governanceand values to Board of Directors, andundergoes regular external auditscompleted by independent third parties

Level of Maturity

OKRs should be established for theintentional design review process andregularly assessed

Independent third parties should becontracted to conduct external audits of theintentional design process and unintendedconsequences

Early Stage Seed-Series B

Late Stage Series C+

Intentional Design

Action for Improvement

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Establish an assessment process tocontinually check for Intentional Designimplementation

BelowNo efforts have been made to assesstraining datasets for bias

AverageConsistent efforts are made to assessdatasets and AI models for fairness

ExemplaryData, AI, and outcomes are all continuallymonitored, evaluated, and reported tothe Board of Directors for specificfairness metrics

Level of Maturity

Documentation of all potential unwantedbias should be made and assessed for inall datasets and models within 90 days

Consistent fairness metrics should beselected and integrated into modeldevelopment and data management

Quarterly assessments should beconducted on all system based decisionsto evaluate for fairness and explainability

BelowConsistent efforts are made to assessdatasets and AI models for fairness withclear explanations given for any systembased decision

AverageThird party tools and frameworks areutilized to assess datasets and AI modelsfor fairness, with clear explanations givenfor any system based decision

ExemplaryCompany has referenced third partyframeworks to either champion or developtheir own industry leading tools forassessing fairness in datasets and AI models,and actively contributes to industry thoughtleadership on fairness and explainability

Level of Maturity

Dashboard that monitors for fairnessmetrics should be procured

Company initiatives should be establishedspecifically to build and improve on currentexternal fairness metrics and frameworks

Early Stage Seed-Series B

Late Stage Series C+

Fairness

Action for Improvement

Action for Improvement

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Establish an assessment process tocontinually check for Fairnessimplementation

BelowNo efforts have been made to aligncompany mission to a clear set of values

AverageThe company has published its missionand values as well as clearlydemonstrated how these are beingutilized in critical decision making andconsidering the wellbeing of the end-user

ExemplaryWell established metrics are used withinthe company to measure the mission andvalues that impact the wellbeing of theend-users

Level of Maturity

Mission statement and values should bedeveloped within 30 days and published oncompany website

Wellbeing metrics should be establishedto help monitor the impact of thecompany mission and values

Wellbeing metrics should beincorporated into product designlifecycle

BelowThe company has published its mission andvalues as well as clearly demonstrated howthese are being utilized in critical decisionand considering the wellbeing of the end-user

AverageCompany uses internal KPIs to measureboth the short and long-term well-being ofend-users, and has clearly demonstratedhow its mission and values are beingutilized in critical decision making

ExemplaryCompany generates public reports usingexternal KPIs that measure short and long-term well-being of the end-users. Companyhas published use cases demonstrating howits mission and values are implemented andutilized in critical decision making

Level of Maturity

Metrics should be expanded to includeassessment for both short- and long-termwellbeing of end-users

Quarterly reporting on all wellbeing metricsin the product design lifecycle should beestablished

Early Stage Seed-Series B

Late Stage Series C+

Social Impact

Action for Improvement

Action for Improvement

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Establish an assessment process tocontinually check for Social Impactimplementation

BelowNo considerations have been made foruser privacy

AverageThere is a clear data privacy strategyand established channels ofcommunication with the user

ExemplaryData privacy strategy is owned by productmanagement or CISO, and is clearlycommunicated to users. A well-definedprocess for user feedback on product hasbeen established

Level of MaturityA user privacy document on how data isbeing managed and used should bedeveloped and published on the companywebsite within 90 days

Either product management or CISOshould be assigned responsibility for theuser privacy document and a clearchannel for user feedback should beestablished

Responsibility for GDPR compliance isassigned and basic customer advocateprogram should be established

BelowCompany is GDPR compliant with clear datacollection protocols, and has establishedsome channels of communication with end-user

AverageCompany is GDPR compliant with a clearprivacy strategy on data collection andmisuse of information, and clearcommunication channels have beenestablished with end-users. Basic databreach protections have been put in place

ExemplaryDPO is responsible for GDPR compliance andCPO owns privacy strategy on data collectionand misuse of information. Company is Soc2compliant and data breach protectionsundergo regular third party assessments todemonstrate robust cybersecurity strategy.Additionally there are establishedcommunication and feedback channels withend-users

Level of Maturity

Customer advocate program should beexpanded and basic data breachprotocols should be put in place

GDPR compliance should be assigned to theDPO, user privacy, security andcommunication assigned to the CPO, andSoc2 compliance should be sought

Early Stage Seed-Series B

Late Stage Series C+

Trust & Transparency

Action for Improvement

Action for Improvement

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Establish an assessment process tocontinually check for Trust andTransparency implementation

AI technology has exploded in popularity over the last 10 years,with each wave of technical breakthroughs ushering in potentialfor consumers and companies alike. In order to fully maximize thebenefits of AI, companies need to incorporate robust AI Ethicsinto the business from the very beginning stages of development.

Currently, global technology firms are deploying AI Ethicsframeworks while governments look to require ethical practicesthrough regulation. However, frameworks and regulations alonecannot ensure ethical technology in practice. Ensuring that AIalgorithms behave ethically requires assessment, measurement,and consistent improvement. It requires both the technicalcapability to develop fair, unbiased, and safe AI, as well as thepeople and processes to ensure the company deploying AI isresponsible and transparent with their consumers. As AI becomesincreasingly important to the startup market, companies will needto scale up their capabilities to assess, audit, and review AItechnologies for ethical concerns.

FINAL REMARKS

Understand where you stand on the Continuum,self-assess at www.EAIGG.org

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The Global Landscape of AI Ethics GuidelinesA Unified Framework of Five Principles for AI in SocietyAn Ethical Framework for a Good AI Society: Opportunities,Risks, Principles, and RecommendationsIEEE Ethically Aligned DesignThe Business Case for AI Ethics

FURTHER RESOURCES

ACKNOWLEDGEMENTSAnik Bose, Venkat Raghavan, Emmanuel Benhamou Benhamou Global Ventures LLC

Olivia Gambelin, Alayna KennedyEthical Intelligence Associates, Limited

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