Artificial Intelligence (AI) is rapidly transforming our world, bringing both remarkable advancements and ethical dilemmas. As its capabilities grow, so do concerns about misuse. From military applications to historical representations, improper AI usage raises significant questions about accuracy, accountability, and societal impact.

This has huge implications for credit unions. If they misuse AI—such as in the examples below—they run the risk of losing their members’ trust in them and severely damaging their brand’s reputation. And once these things are lost, they can be nearly impossible to get back. Let’s look at a few examples of how AI is being misused in other industries and how credit unions can avoid those pitfalls.

Examples of AI misusage

Loss of human intervention

The Defense Advanced Research Projects Agency (DARPA) has long been at the forefront of cutting-edge technology development, including AI. However, some projects have sparked controversy due to concerns over transparency and ethical implications. For instance, DARPA’s “Algorithmic Warfare” program aims to harness AI for military applications, including data analysis and decision-making in combat scenarios.

While the potential for enhanced national security is undeniable, critics argue that relying on AI for military strategies can lead to unintended consequences, such as the loss of human oversight and increased risk of conflict escalation. The ethical implications of autonomous weapons could lead to life-and-death outcomes without human intervention, are a pressing concern that reflects a broader topic in AI development: the need for robust ethical frameworks.

The fact of the matter is, these frameworks don’t yet exist, which enables companies to use AI without restriction. Let’s turn this back to credit unions now. If we take human intervention out of credit unions, what could go wrong? Obviously, it won’t be to the same caliber as loss of life, but what could happen?

From undetected fraud to larger ethical implications such as biased lending decisions. Navy Federal came into hot water last year for allowing AI to make lending decisions without human oversight, resulting in huge racial discrepancies and a lawsuit against the credit union.

Misinformation

AI’s ability to manipulate historical narratives has come into sharp focus with the controversial portrayal of Founding Father George Washington as a Black man in a digital artwork generated by AI. While some see this as an innovative reimagining of history, others argue it undermines historical accuracy and contributes to misinformation. This example demonstrates the potential for AI to reshape public perception in ways that can either educate or mislead.

And it’s not just AI artwork that is providing misleading or incorrect information. AI chatbots—which many credit unions are currently implementing or looking to add—have a history of providing users with incorrect policies. Recently, Air Canada had legal issues after their chatbot went rogue and told a user false information. The airline was then held legally accountable for the actions of the chatbot and had to follow the incorrect policy for that specific customer.

Turning back to credit unions again, what can happen if AI provides members with misinformation? If an AI chatbot tells them incorrect info about their account or the credit union, that can have disastrous results for both the member and the credit union and in a worst-case scenario can result in the credit union facing legal repercussions.

The pros and cons of AI

None of this is to say that AI must be avoided entirely but to serve as a reminder that as we innovate, we are working with technology that is largely untested and operating without strict laws or ethical guidelines, which can have consequences as a result. As we navigate the complexities of AI, it’s crucial to weigh its advantages against the potential pitfalls. Here’s a quick overview of some of those advantages and disadvantages to consider.

Advantages of AI

1. Efficiency and productivity: AI can process vast amounts of data far more quickly than humans, leading to increased productivity across industries.
2. Innovation: AI drives advancements in fields such as healthcare, finance, and transportation, enabling breakthroughs like personalized medicine and autonomous vehicles.
3. Problem-solving: from climate change to complex logistics, AI can analyze trends and propose solutions that humans might overlook.

Disadvantages of AI

1. Ethical concerns: issues like bias in AI algorithms can lead to unfair treatment and discrimination, particularly in areas like hiring and law enforcement.
2. Job displacement: automation threatens to replace numerous jobs, raising concerns about economic inequality and workforce transitions.
3. Misinformation: the ability of AI to generate misleading content can erode trust in information sources, complicating public discourse.

Navigating the future

As we harness the potential of AI, it’s essential to establish ethical guidelines and ensure responsible usage. Striking a balance between innovation and ethical responsibility will be vital in shaping a future where artificial intelligence serves as a tool for progress rather than a source of division.

As society grapples with these issues, ongoing conversations among technologists, ethicists, and the public will be crucial in defining the path forward. Ultimately, the aim should be to create an environment where AI enhances our lives while safeguarding our values and truths.