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Please address the following questions for Part 2:
Continue with the company you chose and wrote about in Part 1.
What are three new business proposals/options to consider for your identified company?
What type of AI or AIR would you suggest for each of these three business options?
Did you find these applications in use in any other companies? If any issues, did they resolve them in the other company? How did they resolve?
Issues and Risks Associated with Artificial Intelligence in Business
John Doe
BUSN600
04/19/2024
Several industries in the world have adopted Artificial Intelligence (AI) and Artificial
Intelligence Robotics (AIRs) to promote efficiency and get innovative solutions to boost their
operations. The main goal of this study is to examine the application of AI and AIRs in Amazonthe global leading company in AI and AIRs (Jain, J., 2021). This paper will identify issues linked
with AI in Amazon, and challenges the company has faced since the incorporation of AI,
examine the corruption of AI, and determine the risks Amazon may face. Amazon applies AI to
integrate technologies that increase production and increases sales (Manheim, K., 2019). Overall,
Amazon has applied AI technologies in developing modified shopping experiences by
optimizing logistics and cloud-based AI solutions.
Major Issues Caused by AI in Amazon Business
Job Displacement
Since the implementation of AI results in mechanization, human labor has been replaced
by machines and robots. Hence, the livelihood of individuals displaced by machines and robots
in Amazon has been negatively affected (Kozinets, R. V., 2021). Furthermore, income disparity
has been witnessed in the USA. Additionally, manual laborers have been displaced by the
deployment of AIRs in Amazon which led to the restructuring of the workforce. Therefore,
Amazon should develop proactive approaches that address possible job displacement to promote
a smooth transition for the affected workers.
Data Privacy and Security Concerns
The implementation of AI technologies requires wide topics to be covered in training
individuals on the AI algorithms to make detailed decisions. Amazon experiences data-related
privacy and security concerns by relying on AI algorithms in data analysis. Some of the concerns
include consumer involvement and operational optimization (Kozinets, R. V., 2021). Amazon’s
data can be breached in the process of processing huge amounts of data by AI technologies due
to the vulnerabilities that pose cyber threats. Amazon should adopt measures that safeguard
sensitive clients’ information and ensure robust cybersecurity measures since AI technologies
promote modified product recommendations, dynamic pricing strategies, and fraud detection
mechanisms.
Algorithmic Bias and Fairness
The findings of this paper show that AI technologies can mistakably lead to bias in data
training, leading to unfair outcomes and discrimination. Discriminatory practices have been
experienced in various demographics at Amazon in the process of recruitment using AI-based
instruments (Jain, J., 2021). Hence, Amazon should continuously monitor data, diversify data,
and oversight ethical concerns to address the biases in AI technologies.
Uniqueness of Issues in Amazon.
The scale of Implementation: Job displacement issues in Amazon came as a result of
extensive integration of AI technologies in all the operations of Amazon in product production or
service delivery affected many employees as compared to small industries.
Data Sensitivity: Since Amazon is one of the leading AI-based companies in dealing with huge
amounts of sensitive data, it faces challenges of data privacy and security associated with AI.
Hence, Amazon should mitigate the possible factors that breach customer’s trust and regulatory
compliance (Manheim, K., 2019).
Public Scrutiny: Amazon is a high-profile industry that should keenly scrutinize algorithmic
fairness and ethical AI practices. Amazon can damage its reputation if it fails to address the
biases or discrimination in AI technologies and face legal consequences.
Examples Illustrating Identified Issues
Job Displacement: labor protests and disputes were seen in Amazon in the implementation of an
AI-based chat box that reduced the number of staff working at a call center.
Data Privacy and Security Concerns: The brand reputation of Amazon was damaged by the data
breach that compromised many clients’ records after a regulatory investigation.
Algorithmic Bias and Fairness: Amazon faced a public outcry since the AI-based employment
tool favored men over women when an audit was conducted. This made Amazon face legal
action for discriminatory practices (Manheim, K., 2019).
Corruption of AI: Definition and Risks in Amazon
Job Displacement: The unethical application of AI disregards the social responsibility
and welfare of employees by automating tasks solely to save costs.
Data Privacy and Security Concerns: People have tried accessing and manipulating sensitive data
by exploiting the vulnerabilities of AI systems to get money or spy.
Algorithmic Bias and Fairness: Many individuals have deliberately manipulated AI technologies
for personal or institutional gains by discriminating against certain groups.
Conclusion
Even though AI has significantly contributed to the success of Amazon, it has also made
the industry deal with complex ethical concerns and potential corruption (Jain, J., 2021).
Amazon can reduce risks associated with AI technologies by mitigating issues such as algorithm
bias, data privacy, and job displacement and exploiting the benefits of AI.
References
Jain, J. (2021). Artificial intelligence in the cyber security environment. Artificial Intelligence
and Data Mining Approaches in Security Frameworks, 101-117.
Manheim, K., & Kaplan, L. (2019). Artificial intelligence: Risks to privacy and democracy. Yale
JL & Tech., 21, 106.
Kozinets, R. V., & Gretzel, U. (2021). Commentary: Artificial intelligence: The marketer’s
dilemma. Journal of Marketing, 85(1), 156-159.
