Artificial intelligence (AI) is transforming myriad aspects of modern life, from business insights and public safety to society. Like elsewhere, AI is poised to reshape the Middle East, with billions of dollars in potential economic gains. According to reports from PwC and McKinsey, the region could boost its GDP by double digits. 

Over 60% of businesses already harness AI in some capacity, and the technology is rapidly becoming an integral part of the business landscape. 

And we know that for all AI has changed so far, there is far more change to come.

Therefore, as the region races to capitalize on AI’s potential, this is the moment to grapple with the big questions. How can we balance innovation with responsible AI? 

INNOVATION WITHOUT ETHICS

“The prioritization of rapid innovation at any cost, with a lack of coherent universal ethical frameworks combined with an investment hype cycle, creates economic disruption, leading to market imbalances, job displacement, and increased inequality,” says Esther O’Callaghan, Founder and CEO of Hub71 startup, Hundo, an AI-powered skills learning platform. 

She warns of AI’s potential to damage society, increasing bias, discrimination, privacy violations, and the erosion of cultural values. 

“AI and machine learning systems can perpetuate or even amplify existing biases, and we see cases like this all the time as the Large Language Model (LLM) is trained on publicly available data where significant, embedded bias was problematic before AI and is now exacerbated by it. This can lead to unfair hiring, law enforcement, and lending treatment.”

Highlighting key ethical challenges facing tech companies today, particularly with the rapid adoption of LLMs and cloud-native technologies, Hassan Alnoon, CEO of Multiverse Innovation Consultancy and CTO of Botim, emphasizes that while cloud-based AI solutions offer significant advantages, especially in reducing costs, they also raise serious concerns about data privacy and handling.

He points to AI’s impact on a different aspect of employment, noting that as AI becomes more advanced, it can perform jobs faster and more efficiently than humans, potentially displacing workers and deepening economic inequality.

He warns that misinformation resulting from unregulated tech and innovation presents significant danger. “Without proper oversight, these technologies can become vehicles for spreading false information, misinformation, and propaganda. This can have far-reaching consequences on public opinion, decision-making, and societal stability.”

Thouheed Abdul Gaffoor, CEO of Basetwo, an AI Copilot for process engineers, says that “move fast and break things” doesn’t apply to AI and advanced technologies that service foundational industries such as healthcare, manufacturing, defense, construction, and infrastructure.

“The risk of innovating without guardrails can have a wide range of consequences — ranging from losing consumer trust to more catastrophic outcomes such as cybersecurity exploitations, regulatory and/or product quality shortfalls, as well as health and safety impacts to personnel.”

ETHICAL CONSIDERATIONS AND STRATEGIES

In such a scenario, prioritizing robust security measures to mitigate unintended harms is of critical importance. “Tech companies should prioritize the implementation of robust security mechanisms and processes. This includes strict adherence to established security standards and information security governance guidelines,” says Alnoon.

He also stresses the need to thoroughly vet third-party AI tools before integration, as inadequate safeguards can lead to harmful outcomes. Ensuring these tools meet high safety and ethical standards is crucial.

According to Alnoon, comprehensive training programs are also important to instill a strong ethical and security-focused mindset among all employees. These programs recognize that a company’s integrity is only as strong as its weakest link.

This is not all. It is essential to maintain a rigorous quality assurance and security team to thoroughly assess products before release and ensure they meet the highest ethical and security standards.

O’Callaghan says the tech industry’s lack of diversity creates an echo chamber of groupthink, limiting its understanding of innovation’s impact on diverse users. She calls for a strong mandate to increase diversity, especially at the board and C-suite levels, by including voices outside the tech sector.

“Diverse teams are increasingly proven to benefit both innovation and the bottom line; it is not a token gesture but good business sense.  The people most impacted by innovation often have no voice, no seat at the table.”

There’s a need for outstanding leadership and accountability from industry leaders, which includes establishing and enforcing ethical guidelines, involving diverse stakeholders in development, and ensuring regulatory compliance. 

Promoting transparency and accountability fosters responsible innovation aligned with societal values and long-term success.

Abdul Gaffoor adds that this can be achieved by explaining the basic assumptions behind AI model architectures, the training data used, and the validation process. This transparency helps consumers and decision-makers grasp the reasoning behind predictions.

He also highlights cybersecurity must be at the heart of everything we build to avoid exploiting vulnerabilities.

Beyond technological safeguards, cultural factors are crucial. Founders must redefine “growth,” avoiding the traditional rush to deploy incomplete solutions, says Abdul Gaffoor, adding that tech companies should focus on ‘land and expand’ strategies that build end-user or business trust incrementally, starting with smaller, narrowly focused deployments that de-risk enterprise rollouts.

A COMPETITIVE ADVANTAGE

Responsible innovation is a competitive advantage in the market, as the majority are wary of the vast advancements of AI and machine learning.

It starts with building consumer trust, O’Callaghan says.

“Such practices differentiate companies in a crowded market, enhance long-term sustainability, and appeal to investors and partners interested in ESG factors. Ultimately, responsible innovation can foster brand loyalty, drive societal impact, and position companies as leaders in ethical and sustainable technology.”

Alnoon notes that tech companies can establish a strong foundation of reliability and integrity by clearly committing to protecting and responsibly using consumer data. Maintaining trust is crucial for fostering long-term relationships, building a trustworthy brand identity, and serving as a powerful tool for talent acquisition.

“Talented professionals are drawn to organizations that value ethics and responsibility, which enhances the company’s internal ecosystem and drives further innovation and success,” adds Alnoon.

THE ROLE OF GOVERNMENT 

At its core, innovation equals risk. “Pushing the boundaries to create a new normal is a function of innovation,” says O’Callaghan. “That can be at odds with regulation.”

She explains that stifling innovation with unnecessary red tape and bureaucracy is not a responsibility. “Driving more public money as a force for good with a comprehensive, not onerous, set of ethical standards and frameworks, more public funding allocated to diverse innovators to rebalance private market capital would create a sea change in the innovation landscape.”

According to O’Callaghan, the rush to deploy AI, under pressure to innovate, often outpaces our understanding of societal impacts. Regulations lag behind, coming too little, too late.

Abdul Gaffoor says tech companies must understand government priorities, engage with regulators, ensure product compliance and access funding to de-risk adoption. Governments, in turn, must provide clear strategies, policies, and grants for tech companies.

AI has undeniably impacted most industries and organizations over the past year, and it will dramatically transform how business is conducted for years to come. As companies navigate AI, it’s essential to have deeper conversations about the need for responsible AI in innovation, without which an organization will not succeed in tomorrow’s economy.