Basis Technology, the leading provider of AI-powered solutions for multilingual text analytics, has produced a new guide to the black box problem: the regulatory and implementation barriers caused by the un-explainability of sophisticated AI.
An interview with Prattle CEO Evan Schnidman appears in a section of the booklet titled, “How Innovation Causes (& Potentially Solves) AI’s Biggest Compliance Problems.”
In highly regulated industries like finance and healthcare, AI faces at least three key compliance issues. First, these industries tend to be built on a high degree of human expertise, so social pressure remains to simply hire another person to fill a role rather than utilizing technology to make existing personnel more productive. Second, this human-centric ethos is codified with asset management exams (Series 7 and 63), board licensure (in the case of medical practitioners), and training qualifications like an MBA, CFA, MD, and NP. Machines cannot “pass” such exams or engage in such training, so the personnel managing the machines are liable for their performance and therefore hesitant to adopt new technologies.
The last barrier is the “black box” problem, which is arguably the single most significant hurdle to widespread AI adoption in regulated industries. In short, the “black box” problem is essentially the reluctance on behalf of decision-makers to adopt new technology that cannot be easily explained.
The Amazing, Anti-Jargon, Insight-Filled, and Totally Free Handbook to Integrating AI in Highly Regulated Industries is freely available on Basis Technology’s website.
The Prattle Team