New Deloitte Report Emphasizes the Gap Between Generative AI Adoption and Ethical Awareness Among Organizations

NEW YORK, Oct. 10, 2023 — Many companies are beginning to test or use Generative AI, yet more than half (56%) of respondents don’t know or are unsure if their organizations have ethical standards guiding its use, according to Deloitte‘s second annual report on the “State of Ethics and Trust in Technology.”

Nearly three-quarters (74%) of individuals surveyed say their companies have begun testing Generative AI, 65% are already using it inside their businesses, and 31% have begun using this technology for external consumption.

The study, led by Deloitte’s Technology Trust Ethics practice, surveyed more than 1,700 business and technical professionals across industry sectors to assess if and how ethical standards are being applied to emerging technology in their organizations. Emerging technology was defined as cognitive technologies (including AI), digital reality, ambient experiences, autonomous vehicles, quantum computing, distributed ledger technology and robotics, and the survey and report had an added focus on Generative AI this year.

“There is an inherent opportunity to apply emerging technologies for societal good while creating financial value for the enterprise,” said Kwasi Mitchell, chief purpose and DEI officer at Deloitte. “However, the adoption of Generative AI is outpacing the development of ethical principles around the use of the technology, intensifying the potential risks to society and corporate trust if these standards continue to lag.”

Key Findings

Data privacy was reported as the top ethical concern about Generative AI. Respondents ranked data privacy (22%) as their No. 1 concern about Generative AI. Despite this, the percent of respondents who selected data privacy as one of the most important ethical principles for general emerging technologies in their organization fell from 19% in last year’s survey to 7% this year.

The perception of cognitive technologies’ potential for social good is increasing — and the perception of its potential for harm is rising even faster. In this year’s survey, 39% of respondents indicated cognitive technologies — which includes Generative AI — have the most potential for good among all emerging technologies, up from 33% last year. Cognitive technologies were also ranked as most likely to pose a serious ethical risk among 57% of respondents, compared with 41% in 2022.

Organizations opt to retain, retrain and upskill in response to automation. Nearly three-quarters (73%) of respondents said their organizations are shifting some workers’ tasks due to the adoption of new technologies. Among these organizations, 85% retain individuals whose roles are affected, and more than two-thirds (67%) additionally retrain or upskill those employees for new positions, countering common perceptions that emerging technology will eliminate jobs. When asked to rank top ethical concerns about Generative AI’s use more broadly across business, only 7% of respondents cited job displacement where Generative AI replaces human jobs.

Collaboration with other businesses on ethical tech standards remains unchanged, while expectations of government increase. Despite the increased attention on emerging technologies in the wake of Generative AI, only 27% of survey respondents reported their companies collaborating with commercial entities (down from 31% last year), and only 23% report partnering with government organizations to review potential ethics concerns (flat relative to 22% last year). The percentage of respondents who believe government should have a bigger role in setting ethical standards rose to 71% this year from 61% last year.

Respondents said their organizations are supportive of government playing a role in technology regulation, specifically in fostering cross-business collaboration to define standards (69%), setting regulations (59%), incentivizing adoption of standards (50%), and imposing financial penalties (37%).

“The potential benefits of emerging technologies can increase when companies collaborate and share their knowledge,” said Beena Ammanath, managing director, Deloitte Consulting LLP and leader of Deloitte’s Technology Trust Ethics practice, and the report’s author. “The sooner companies work together to identify the risks and establish governance up front, the better their ability may be to help generate stakeholder value, elevate their brands, create new markets and contribute to building a more equitable world.”

Deloitte’s Technology Trust Ethics practice is part of the U.S. Purpose and DEI Office and focuses on embedding ethical decision-making into the development and use of emerging technology, to build trust in those technologies and expand the equitable opportunities of a tech-savvy world to all people.

The practice developed a Technology Trust Ethics framework to help organizations assess the ethical implications of emerging technologies and guide responsible decision-making in the design, operation and governance of those technologies.

Methodology

Deloitte’s research included interviews in June 2023 with 26 executives and surveyed more than 1,700 business and technical professionals involved in developing, consuming or managing emerging technologies. Respondents represented industry sectors including technology, media and telecommunications; financial services; life sciences and health care; consumer; energy; academia; government and public service; and nonprofit. The survey spanned the impact of Generative AI on organizations, the understanding of and value placed on ethical principles for emerging technologies, and mechanisms to implement ethical behavior throughout their organizations.

About Deloitte

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500 and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories.

Source: Deloitte