AI in E-Commerce - Part Two: Mitigating Risks

Content

Our Newsletter

Get Our Resources Delivered Straight To Your Inbox

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
We respect your privacy. Learn more here.

In any organization, there are people who innovate, drive progress and inadvertently create risks; a different set of people are tasked with managing and mitigating the risks.

As AI continues to revolutionize business operations, the complexity and scale of the risks evolve which, in turn, demands a more sophisticated approach to risk management.  

Understanding what your organization is trying to achieve by implementing AI, whether it’s enhancing the customer experience with greater personalization or improving your inventory management to reduce overheads, will help you manage and mitigate risks that arise throughout the process.

At Zendata, we believe that the core component of successful AI adoption is ensuring you have the proper data controls in place.  Without them, AI systems risk developing biases that can skew decision-making processes, provide inaccurate insights and ultimately affect the business's reputation and growth.

How to Mitigate AI Risks and Exposure

Implementing AI impacts a variety of business functions and creates different risks in each. In a survey by PwC, they found that more than 37% of businesses have in place, and communicate, a strategy and policies to tackle AI risk.  

Earlier this year, the National Institute of Standards and Technology (NIST) released its AI Risk Management Framework, designed to provide a framework to help businesses develop trustworthy AI systems and mitigate the associated risks.

Each of the following steps and recommendations will help to address a specific risk area associated with AI adoption.

So, how can we mitigate the risks and exposure that come with AI implementation?

Ensure You Have High-Quality Data

Excellent data quality starts with effective data mapping, a vital process that unifies and transforms data from different sources into a coherent format suitable for operational and analytical processes. 

We know the accuracy of AI-driven decisions is tied directly to data quality; 43% of those surveyed by Revefi have experienced negative consequences of poor data quality in AI projects.

To address this, you must establish comprehensive data governance policies that cover the entire data lifecycle and integrate rigorous data integrity checks that prioritise accuracy and consistency. Use automated tools to cleanse and refine your datasets by pinpointing and correcting data to enhance the precision of your models. 

It's crucial to establish strict data controls that not only meet technical requirements but also allow you to regularly review data for biases and ensure that datasets are diverse and inclusive. You can collaborate with data teams to detect potential biases in data collection, storage and processing methods before using them in the training model. This way, you can prevent biased data from influencing the machine learning model's results.

Regular risk assessments are also important as they help to identify vulnerabilities in data pipelines and verification processes. This allows you to develop mitigation strategies to address security risks and improve data integrity.

By taking this holistic approach to data quality, which begins with robust data controls and effective data mapping and ends with governance and regular assessments, you can reduce security risks and ensure operational efficiency and compliance. This will preserve trust in your AI systems and protect your organisation’s reputation.

Prioritise Robust Cybersecurity In AI Systems 

AI systems that handle customer data are attractive targets for threat actors and breaches will lead to significant reputational and financial damage.  

Ironically, incorporating state-of-the-art cybersecurity systems driven by AI will enhance your security posture.  These systems help to predict, identify and mitigate threats at machine speed before they have a chance to impact your infrastructure.  This ensures your services are uninterrupted and secure, enhancing the customer experience.

Implementing regular security audits or continuous security validation across your IT environment will help you to identify vulnerabilities before they are exploited.  Taking a proactive stance is crucial to ensuring your defences are capable of withstanding an attack, like regularly updating and patching systems to help close security vulnerabilities. 

And, of course, training employees on cybersecurity best practices helps to reduce the risk of human error.  Verizon’s 2023 Data Breach Report states that 74% of breaches involved a human element which includes social engineering, errors or misuse.

Introduce Human Oversight and Accountability

Humans still have a part to play in ensuring AI systems remain fair, transparent, ethical, unbiased and accountable. 

While AI is a powerful tool, it lacks the nuanced understanding and ethics that humans possess which could lead to situations where AI-driven decisions are technically correct and accurate, yet morally or ethically questionable.  This creates significant risks for the business like legal issues, customer alienation and brand damage.

Establish a systematic human-led process for reviewing and auditing AI-driven decisions, including creating mechanisms for flagging and addressing decisions that seem wrong, biased or inconsistent with your business goals.  Feedback loops like this, where human decisions help to inform and refine algorithms, allow the model to learn where it went wrong and improve. 

Even with the most sophisticated data controls, you will never be able to completely eliminate bias - but by having a human-led process in place you can identify, understand and rectify biases that stem from inadequate data.

This is critical for a business aiming to foster a culture of responsibility and trust, both internally and in the eyes of customers.

By adopting a balanced approach where AI augments the human decision-making process instead of replacing it, you can ground AI systems in ethical principles that align with your corporate vision and values.

Integrate DevSecOps Principles and CI/CD

Integrating security from the beginning of the development process is essential.  This approach ensures your AI systems are protected against continuously evolving threats.  

The essence of DevSecOps is proactive, continuous security monitoring and testing of systems which is crucial in the shifting world of e-commerce.  Regular updates to security protocols and automated testing mean risks are identified and mitigated, reducing the potential of a breach or data leak.

Embracing CI/CD translates to maintaining agility and responsiveness to both market demands and security challenges. Automated testing continuously vets AI models and algorithms for performance and security, ensuring they meet the high standards necessary for both operational excellence and customer trust. 

Scalability, another key feature of CI/CD, allows AI systems to adapt efficiently to changing business needs and market conditions – a vital attribute in the ever-changing landscape of e-commerce.

Adopting these principles and methodologies facilitates faster, more efficient deployment of AI applications that are secure by design, allowing you to rapidly innovate in response to market changes without compromising on security or compliance standards.

How Zendata Can Help

Our belief is that data should be at the heart of every endeavour and the driver behind every decision. But without knowing what data you collect, where it’s coming from, whether it’s accurate and representative and whether you’re entitled to store it, you’re flying blind.

At Zendata, our aim is clear: to offer a reliable and practical platform that facilitates precise and compliant data discovery, collection, mapping and management. Our platform aligns your business with the latest data protection and privacy laws and regulations and detects potential risks in your source code to prevent data breaches.

Our solutions are designed to support your strategic objectives around data protection and privacy compliance and integrate seamlessly into your business operations to provide a solid foundation to maintain data integrity, compliance and customer trust.

Data Discovery and Mapping 

Understanding and securing the data you collect is crucial to the success of your business. Data Discovery and Mapping tools are key to knowing how your data connects across systems, enabling you to manage and protect it effectively. 

Our platform scans, identifies and protects Personally Identifiable Information (PII) where it’s located.  Using classifiers, we ensure that the data feeding into your business systems is accurately mapped and secured.  

You can connect various data sources, databases and environments and our platform will map the data rules and dependencies, as well as highlight any risks.  This will provide you with a greater understanding of how your data moves and transforms across your systems, enabling better management and protection of data across your organisation. 

Real-Time Privacy Assessments

In a world where data privacy is a growing concern, staying informed of and ahead of risks is critical to success.  Our Website Scanner monitors your public-facing digital assets and analyses the intricacies of your data integrations, data collection, information sharing and third-party tracking.  This enables us to provide real-time privacy assessments, make compliance recommendations and identify potential privacy risks.  

We map all of this information back to your privacy policy and provide you with a report that shows you whether or not you’re collecting data compliantly, legally and safely. We can help you identify risks and maintain compliance in real time.

Automated Compliance Monitoring

For businesses that operate under strict data frameworks like GDPR and CCPA, maintaining compliance is a significant challenge. Zendata’s Automated Compliance Monitoring platform provides a robust solution for monitoring data risks in real time. It proactively scans and identifies potential vulnerabilities in your data handling processes, making it a valuable asset for continuous compliance.

Our platform excels in cataloguing data elements collected through cookies and third-party trackers, a common practice in e-commerce.  We cross reference the collected data against user consent and privacy policies to ensure that data collection aligns with legal and ethical standards - a critical process for adhering to user consent requirements.

By integrating Zendata’s tools you can protect your business from compliance failings, maintain user trust and uphold your commitments to data privacy and security.

Development Pipeline Code Scanner

Securing the development process is essential in minimising data risks.  Zendata’s Code Scanner manages data risks at the source code level by automatically detecting potential PII violations and vulnerabilities in the codebase, offering insights and recommendations to secure PII effectively.  

Integrating seamlessly into your test pipelines, Code Scanner makes sure your engineering processes comply with organisation policies. Our advanced and customisable pattern recognition algorithms detect a wide range of PII types and can be adapted to detect geo-specific or industry-specific data in your code. 

We offer an array of essential validations, such as scrutinising logging mechanisms to prevent inadvertent logging of PII, examining direct database operations that might insert PII and verifying that data isn't inadvertently transmitted to third-party services or external servers. 

We believe the journey to AI maturity is one of balance - balancing innovation with responsibility, technological advancement with ethical considerations and data utilisation with privacy protection.

Our platform is designed to integrate into your business ecosystem and provide peace of mind and enhanced security against the challenges you face.

Conclusion

The transformative power of AI is undeniable, but it brings with it a range of challenges that demand attention.  Responsible AI adoption comes with numerous complexities around data privacy, data protection and risk management. It’s critical that organisations embrace these advancements but also understand the risks that accompany them.

The accuracy and reliability of AI-driven applications are rooted in the integrity of the data they’re based on. Without accurate, diverse data to train your models, you risk them inheriting the biases that could exist within them.

Not having the proper, stringent data controls in place will lead to a biased AI.  This is not a hypothetical risk, but a documented reality observed in numerous industries where AI has been implemented without adequate oversight.  

The consequences of this lack of oversight range from ineffective decision-making to serious ethical breaches. Two notable examples from the last 10 years include racial bias in a healthcare algorithm and Amazon’s failed recruitment algorithm that preferred men over women.

Zendata believes that it is imperative that organisations adopt strong, detailed data governance policies alongside building a culture of continuous scrutiny and improvement of AI models. You must establish ethical data sourcing practices to collect diverse datasets and use automated tools to cleanse the data and measure its accuracy. This will help to ensure the data is representative of a wide spectrum of people and reduce the risk of bias as much as possible.

It is impossible to completely remove bias from your data because of the subjective nature of what constitutes bias.  Even if you collected all of the data from every person on the planet to train your model it would be impossible to remove the inherent biases in the data. This reality highlights the ongoing need for human oversight in AI systems to interpret, understand and correct these biases where the algorithms cannot.

Zendata’s role in this ecosystem is to provide comprehensive tools and solutions to address these challenges.  From data discovery and mapping to real-time privacy assessments, automated compliance monitoring and development code scanning, our platform empowers you to confidently navigate AI development and deployment while safeguarding data privacy and protection.

Mitigating the risks associated with AI in business is not a singular activity but a multi-faceted approach, one that requires continuous improvement.

Our Newsletter

Get Our Resources Delivered Straight To Your Inbox

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
We respect your privacy. Learn more here.

Related Blogs

Fighting AI-Generated Identity Fraud: The Future of eKYC Verification
  • AI
  • February 20, 2024
Discover The Risks of AI-generated Identity Fraud
Navigating The Threat Of Prompt Injection In AI Models
  • AI
  • January 24, 2024
Learn About Prompt Injection Attacks In AI Models
Enhancing LLM Output with Retrieval Augmented Generation
  • AI
  • January 17, 2024
Discover The Secret To Great GenAI Outputs with RAGs
More Blogs

Contact Us For More Information

If you’d like to understand more about Zendata’s solutions and how we can help you, please reach out to the team today.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.





AI in E-Commerce - Part Two: Mitigating Risks

November 28, 2023

In any organization, there are people who innovate, drive progress and inadvertently create risks; a different set of people are tasked with managing and mitigating the risks.

As AI continues to revolutionize business operations, the complexity and scale of the risks evolve which, in turn, demands a more sophisticated approach to risk management.  

Understanding what your organization is trying to achieve by implementing AI, whether it’s enhancing the customer experience with greater personalization or improving your inventory management to reduce overheads, will help you manage and mitigate risks that arise throughout the process.

At Zendata, we believe that the core component of successful AI adoption is ensuring you have the proper data controls in place.  Without them, AI systems risk developing biases that can skew decision-making processes, provide inaccurate insights and ultimately affect the business's reputation and growth.

How to Mitigate AI Risks and Exposure

Implementing AI impacts a variety of business functions and creates different risks in each. In a survey by PwC, they found that more than 37% of businesses have in place, and communicate, a strategy and policies to tackle AI risk.  

Earlier this year, the National Institute of Standards and Technology (NIST) released its AI Risk Management Framework, designed to provide a framework to help businesses develop trustworthy AI systems and mitigate the associated risks.

Each of the following steps and recommendations will help to address a specific risk area associated with AI adoption.

So, how can we mitigate the risks and exposure that come with AI implementation?

Ensure You Have High-Quality Data

Excellent data quality starts with effective data mapping, a vital process that unifies and transforms data from different sources into a coherent format suitable for operational and analytical processes. 

We know the accuracy of AI-driven decisions is tied directly to data quality; 43% of those surveyed by Revefi have experienced negative consequences of poor data quality in AI projects.

To address this, you must establish comprehensive data governance policies that cover the entire data lifecycle and integrate rigorous data integrity checks that prioritise accuracy and consistency. Use automated tools to cleanse and refine your datasets by pinpointing and correcting data to enhance the precision of your models. 

It's crucial to establish strict data controls that not only meet technical requirements but also allow you to regularly review data for biases and ensure that datasets are diverse and inclusive. You can collaborate with data teams to detect potential biases in data collection, storage and processing methods before using them in the training model. This way, you can prevent biased data from influencing the machine learning model's results.

Regular risk assessments are also important as they help to identify vulnerabilities in data pipelines and verification processes. This allows you to develop mitigation strategies to address security risks and improve data integrity.

By taking this holistic approach to data quality, which begins with robust data controls and effective data mapping and ends with governance and regular assessments, you can reduce security risks and ensure operational efficiency and compliance. This will preserve trust in your AI systems and protect your organisation’s reputation.

Prioritise Robust Cybersecurity In AI Systems 

AI systems that handle customer data are attractive targets for threat actors and breaches will lead to significant reputational and financial damage.  

Ironically, incorporating state-of-the-art cybersecurity systems driven by AI will enhance your security posture.  These systems help to predict, identify and mitigate threats at machine speed before they have a chance to impact your infrastructure.  This ensures your services are uninterrupted and secure, enhancing the customer experience.

Implementing regular security audits or continuous security validation across your IT environment will help you to identify vulnerabilities before they are exploited.  Taking a proactive stance is crucial to ensuring your defences are capable of withstanding an attack, like regularly updating and patching systems to help close security vulnerabilities. 

And, of course, training employees on cybersecurity best practices helps to reduce the risk of human error.  Verizon’s 2023 Data Breach Report states that 74% of breaches involved a human element which includes social engineering, errors or misuse.

Introduce Human Oversight and Accountability

Humans still have a part to play in ensuring AI systems remain fair, transparent, ethical, unbiased and accountable. 

While AI is a powerful tool, it lacks the nuanced understanding and ethics that humans possess which could lead to situations where AI-driven decisions are technically correct and accurate, yet morally or ethically questionable.  This creates significant risks for the business like legal issues, customer alienation and brand damage.

Establish a systematic human-led process for reviewing and auditing AI-driven decisions, including creating mechanisms for flagging and addressing decisions that seem wrong, biased or inconsistent with your business goals.  Feedback loops like this, where human decisions help to inform and refine algorithms, allow the model to learn where it went wrong and improve. 

Even with the most sophisticated data controls, you will never be able to completely eliminate bias - but by having a human-led process in place you can identify, understand and rectify biases that stem from inadequate data.

This is critical for a business aiming to foster a culture of responsibility and trust, both internally and in the eyes of customers.

By adopting a balanced approach where AI augments the human decision-making process instead of replacing it, you can ground AI systems in ethical principles that align with your corporate vision and values.

Integrate DevSecOps Principles and CI/CD

Integrating security from the beginning of the development process is essential.  This approach ensures your AI systems are protected against continuously evolving threats.  

The essence of DevSecOps is proactive, continuous security monitoring and testing of systems which is crucial in the shifting world of e-commerce.  Regular updates to security protocols and automated testing mean risks are identified and mitigated, reducing the potential of a breach or data leak.

Embracing CI/CD translates to maintaining agility and responsiveness to both market demands and security challenges. Automated testing continuously vets AI models and algorithms for performance and security, ensuring they meet the high standards necessary for both operational excellence and customer trust. 

Scalability, another key feature of CI/CD, allows AI systems to adapt efficiently to changing business needs and market conditions – a vital attribute in the ever-changing landscape of e-commerce.

Adopting these principles and methodologies facilitates faster, more efficient deployment of AI applications that are secure by design, allowing you to rapidly innovate in response to market changes without compromising on security or compliance standards.

How Zendata Can Help

Our belief is that data should be at the heart of every endeavour and the driver behind every decision. But without knowing what data you collect, where it’s coming from, whether it’s accurate and representative and whether you’re entitled to store it, you’re flying blind.

At Zendata, our aim is clear: to offer a reliable and practical platform that facilitates precise and compliant data discovery, collection, mapping and management. Our platform aligns your business with the latest data protection and privacy laws and regulations and detects potential risks in your source code to prevent data breaches.

Our solutions are designed to support your strategic objectives around data protection and privacy compliance and integrate seamlessly into your business operations to provide a solid foundation to maintain data integrity, compliance and customer trust.

Data Discovery and Mapping 

Understanding and securing the data you collect is crucial to the success of your business. Data Discovery and Mapping tools are key to knowing how your data connects across systems, enabling you to manage and protect it effectively. 

Our platform scans, identifies and protects Personally Identifiable Information (PII) where it’s located.  Using classifiers, we ensure that the data feeding into your business systems is accurately mapped and secured.  

You can connect various data sources, databases and environments and our platform will map the data rules and dependencies, as well as highlight any risks.  This will provide you with a greater understanding of how your data moves and transforms across your systems, enabling better management and protection of data across your organisation. 

Real-Time Privacy Assessments

In a world where data privacy is a growing concern, staying informed of and ahead of risks is critical to success.  Our Website Scanner monitors your public-facing digital assets and analyses the intricacies of your data integrations, data collection, information sharing and third-party tracking.  This enables us to provide real-time privacy assessments, make compliance recommendations and identify potential privacy risks.  

We map all of this information back to your privacy policy and provide you with a report that shows you whether or not you’re collecting data compliantly, legally and safely. We can help you identify risks and maintain compliance in real time.

Automated Compliance Monitoring

For businesses that operate under strict data frameworks like GDPR and CCPA, maintaining compliance is a significant challenge. Zendata’s Automated Compliance Monitoring platform provides a robust solution for monitoring data risks in real time. It proactively scans and identifies potential vulnerabilities in your data handling processes, making it a valuable asset for continuous compliance.

Our platform excels in cataloguing data elements collected through cookies and third-party trackers, a common practice in e-commerce.  We cross reference the collected data against user consent and privacy policies to ensure that data collection aligns with legal and ethical standards - a critical process for adhering to user consent requirements.

By integrating Zendata’s tools you can protect your business from compliance failings, maintain user trust and uphold your commitments to data privacy and security.

Development Pipeline Code Scanner

Securing the development process is essential in minimising data risks.  Zendata’s Code Scanner manages data risks at the source code level by automatically detecting potential PII violations and vulnerabilities in the codebase, offering insights and recommendations to secure PII effectively.  

Integrating seamlessly into your test pipelines, Code Scanner makes sure your engineering processes comply with organisation policies. Our advanced and customisable pattern recognition algorithms detect a wide range of PII types and can be adapted to detect geo-specific or industry-specific data in your code. 

We offer an array of essential validations, such as scrutinising logging mechanisms to prevent inadvertent logging of PII, examining direct database operations that might insert PII and verifying that data isn't inadvertently transmitted to third-party services or external servers. 

We believe the journey to AI maturity is one of balance - balancing innovation with responsibility, technological advancement with ethical considerations and data utilisation with privacy protection.

Our platform is designed to integrate into your business ecosystem and provide peace of mind and enhanced security against the challenges you face.

Conclusion

The transformative power of AI is undeniable, but it brings with it a range of challenges that demand attention.  Responsible AI adoption comes with numerous complexities around data privacy, data protection and risk management. It’s critical that organisations embrace these advancements but also understand the risks that accompany them.

The accuracy and reliability of AI-driven applications are rooted in the integrity of the data they’re based on. Without accurate, diverse data to train your models, you risk them inheriting the biases that could exist within them.

Not having the proper, stringent data controls in place will lead to a biased AI.  This is not a hypothetical risk, but a documented reality observed in numerous industries where AI has been implemented without adequate oversight.  

The consequences of this lack of oversight range from ineffective decision-making to serious ethical breaches. Two notable examples from the last 10 years include racial bias in a healthcare algorithm and Amazon’s failed recruitment algorithm that preferred men over women.

Zendata believes that it is imperative that organisations adopt strong, detailed data governance policies alongside building a culture of continuous scrutiny and improvement of AI models. You must establish ethical data sourcing practices to collect diverse datasets and use automated tools to cleanse the data and measure its accuracy. This will help to ensure the data is representative of a wide spectrum of people and reduce the risk of bias as much as possible.

It is impossible to completely remove bias from your data because of the subjective nature of what constitutes bias.  Even if you collected all of the data from every person on the planet to train your model it would be impossible to remove the inherent biases in the data. This reality highlights the ongoing need for human oversight in AI systems to interpret, understand and correct these biases where the algorithms cannot.

Zendata’s role in this ecosystem is to provide comprehensive tools and solutions to address these challenges.  From data discovery and mapping to real-time privacy assessments, automated compliance monitoring and development code scanning, our platform empowers you to confidently navigate AI development and deployment while safeguarding data privacy and protection.

Mitigating the risks associated with AI in business is not a singular activity but a multi-faceted approach, one that requires continuous improvement.