Collaboratively Creating a Trustworthy AI World At EY

Collaboratively Creating a Trustworthy AI World

At EY, We Are 260, 000 Strategists Page 2 Innovators Accelerators IDC Digital Strategy Consulting Forrester Innovation Consulting Forrester Global Digital Business Accelerator 2019 Q 4 2018 Q 1 2019

Artificial intelligence (AI) is not the future; it's here, now. As technology transforms business, the time is now to prioritize an AI-led strategy that enables innovation, human creativity and business growth. Page 3

Key findings EY survey 2019 The AI race: Barriers, opportunities and optimism How much do you trust AI? 37% I completely trust AI 50% 10% I do not trust AI at all 87% of respondents are investing in AI initiatives this year Professional talent becomes one of the greatest barriers to AI adoption 46% Lack of AI talent Inefficient infrastructure support Insufficient quantity/quality of data I do not trust AI very much Page 4 business leaders are AI optimists Regulatory/security risk I somewhat trust AI 3% 85% of CEOs and 40% 37% 36% Employee trust 33% Consumer trust 32% Lack of support from senior leadership 26% 33% cite employee trust as one of the great barriers to AI adoption even though CEOs and business leaders completely or somewhat trust AI Reliability and performance are most important in trusting AI Reliability and performance of the technology Security and incorruptibility of the technology Ethics surrounding the use of AI New opportunities driven by AI Governance and supervision of the technology Education and awareness training surrounding the use of AI Policies and standards for the development of AI Explainability of AI conclusions Changes in the industry or supply chain driven by AI New competitive pressures driven by AI Minimization of bias 44% 38% 29% 27% 23% 22% 21% 16% 12% About the study: The data was collected via an online study conducted by Engine on behalf of EY among a sample of 500 US CEOs and business leaders ages 21 and older who work for a company with US$25 m– US$50 m in revenue or US$50 m+ in revenue. To qualify for the study, respondents also had to have C-suite job titles, or director or above titles and involvement in technology-related decisions for their company. Online interviews took place in March 2019. To download the report, please click here.

Artificial intelligence (AI) is not a single technology but a set of methods and tools with sub-domains applied to countless situations. We like to say, "Technology is implemented. Bots are built. But AI is applied. " Generally speaking, AI industry chain falls into three layers, with data as a must. Application layer: use cases Technology layer: algorithms Basic layer: computing power Page 5 Data

The potential of AI to transform our world is tremendous, but the risks are significant, complex and fast-evolving. Those who embed the principles of trust in AI from the start are better positioned to reap AI's greatest rewards. Page 6

EY's Trusted AI Framework Enterprise should establish governance activities according to their role and responsibility in the AI industry chain. EY's Trusted AI Framework emphasizes the following five attributes necessary to sustain trust. r isk s Des i gn t a r is ks Inherent biases arising from the development team composition, data and training methods are identified and addressed through the AI design. The AI system is designed with consideration for the need of all impacted stakeholders and to promote a positive societal impact. Da Trusted AI go l Transparent rit hm i c r i sk s Explainable Page 7 ri s Pe r for m a e nc A When interacting with AI, end users are given appropriate notification and an opportunity to select their level of interaction. User consent is obtained, as required for data captured and used. Unbiased sk Performance The AI's outcomes are aligned with stakeholder expectations and perform at a desired level of precision and consistency. Resilient The data used by the AI system components and the algorithm itself is secured from unauthorized access, corruption and/or adversarial attack. The AI's training methods and decision criteria can be understood, are documented and are readily available for human operator challenge and validation.

EY's Three-Step AI Innovation Process In practical terms, AI is not implemented, but applied, and when it is applied in the following continuous three-step innovation process the outcome is Trusted AI: Purposeful design Agile governance: Track emergent issues across social, regulatory, reputational and ethical domains to inform processes that govern the integrity of a system, its uses, architecture and embedded components, data sourcing and management, model training, and monitoring. Page 8 Purposeful design: Design and build systems that purposefully integrate the right balance of robotic, intelligent and autonomous capabilities to advance welldefined business goals, mindful of context, constraints, readiness and risks. Trusted AI Agile governance Vigilant supervision: Continuously fine tune, curate and monitor systems to enhance reliability in performance, identify and remediate bias, and promote transparency and inclusiveness.

EY Worked with Huawei to Compile This White Paper and Propose the Shared Responsibility Model Role Authorization (by consent, contracts signing, and more) Implementation of commercial objectives Application developers Solution Providers Data Collectors Full-stack Solution (providers) Application layer Technology layer Basic layer User authorization Customize models: choice and adjustment, privacy protection features, explainability and traceability Preset models: explainability and traceability, privacy protection features, security and robustness Security and robustness of runtime framework Data subject rights Defensive components and trustworthy operator Hardware root of trust Data security Lawmakers: develop related laws and regulations Page 9 Competence Commercial objective assurance, and continuous control over deployment and operations risks Privacy protection Deployers Secure use by following product/service instructions Data governance Consumers/ Customers Shared Responsibility

We hope all stakeholders in the AI industry chain to proactively contribute ideas and exert efforts for AI governance. And let's all work together and enjoy AI benefits. Page 10

The White Paper will be released in Europe. EY Wavespace ™ In Wavespace, we curate talent and technology, bringing them together in a collaboration, proven to energize, and align teams to create meaningful outcomes faster. Page 11

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