As organizations increasingly rely on Artificial Intelligence (AI) to improve their operations, they must consider the implications of outsourcing AI services. While legislative proposals on privacy do not address AI nominally, the use of personal information in AI systems can have a significant impact on privacy interests. To ensure data privacy when outsourcing to AI, organizations should be aware of the interrelationships between formal and relational governance and the psychological contract, as well as the conflicting interests of interested parties. When outsourcing to AI, organizations should first understand the interplay between formal and relational governance and the psychological contract.
This framework is based on Lioliou et al., and it involves understanding the roles of both formal and relational governance in the outsourcing process. Formal governance involves the legal and contractual aspects of outsourcing, while relational governance focuses on the trust and communication between the organization and its service provider. The psychological contract is also essential, as it outlines the expectations of both parties in terms of performance, quality, and other factors. Organizations should also be aware of the conflicting interests of interested parties when outsourcing to AI.
Microsoft, Amazon, and Intel are all providing support to The Brookings Institution's Artificial Intelligence and Emerging Technology (AIET) initiative, which is studying the regulatory and governance issues related to AI. However, due to the implementation of SDG8, which is the cornerstone of the AI economy, it can be difficult for organizations to humanize entrepreneurship within its framework. When outsourcing to AI services, organizations should also be aware of Artificial Intelligence as a Service (AiaaS). This is an external outsourcing offering of AI that involves a limited market analysis conducted by the outsourcing manager.
Organizations should carefully evaluate potential service providers to ensure that their data will not be shared with third parties. In conclusion, organizations must take steps to ensure data privacy when outsourcing to AI services. They should consider the interrelationships between formal and relational governance and the psychological contract, as well as the conflicting interests of interested parties. Organizations should also be aware of AiaaS and carefully evaluate potential service providers before making a decision.
