AI and the Creation of Knowledge Gaps: The ethics of AI transparency

Abstract

Managers have stakeholder obligations to justify their decisions align with the values and norms of the organization, further the mission of the firm, avoid breaking relevant laws and regulations, and promote the long-term interests of the firm. These obligations do not disappear when firms adopt AI decision systems. We introduce the concept of the AI knowledge gap-where AI is designed to supply limited information about its operations that precludes managers from meeting stakeholder demands for information justifying firm decisions. We outline the types of knowledge required to ensure the manager and firm can meet their existing obligations to stakeholders. Given these existing obligations, adopting recommendations from a 'black box' AI program, where the manager cannot justify the firms' decisions to stakeholders, is unethical. We argue that adequate knowledge about an AI model is not a negotiable design feature but a strategic and moral requirement.

Keywords: AI, Transparency, Inscrutable AI, Explainable AI, AI Ethics