This issue features an interview with Caroline Lancelot Miltgen, Professor of Marketing at Audencia Business School in Nantes, France. She is an expert on the topic of responsible AI. The interview approaches AI marketing from her academic perspective based on 20 years of research interviewing consumers about technology use.
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Key Takeaways
Companies often focus too much on legal compliance rather than truly understanding and addressing consumer needs and preferences around privacy, transparency, and ethical AI use.
Marketers should strengthen their role in AI ethics by representing the consumer perspective and building trust through responsible, transparent practices.
"Responsible AI" may resonate better than "AI ethics" and implies going beyond mere compliance to provide real value and earn consumer trust.
An AI ethics/responsible AI policy should involve cross-functional collaboration, including marketers, to ensure it addresses consumer needs rather than just legal requirements.
Next Steps
According to Caroline, companies should:
Conduct research to understand consumer preferences for transparency regarding AI use.
Bring a "privacy by design" approach that makes consumer needs the starting point.
Develop responsible AI guidelines and policies with cross-functional input that includes marketers.
Implement transparent AI deployment with simple, audience-tailored disclosures.
Continue exploring human-AI boundaries for different audiences and use cases.
Marketers should:
Be involved from the start in developing AI tools and responsible use policies that represent the consumer’s voice.
Collaborate with IT, legal, and ethics experts to ensure consumer trust is built through transparency and fairness.
"Companies need to focus on 'ethical marketing' and 'responsible marketing' to build trust and transparency with consumers."
Q&A
Q: Let's explore the topic of AI ethics in marketing. What are your thoughts on this subject from the perspective of an academic?
A: AI brings numerous benefits to marketing, enabling tasks that were previously impossible or time-consuming, like personalized advertising and efficient customer service.
However, my research primarily focuses on the potential downsides, particularly concerning consumer perspectives on privacy and data use. Many companies prioritize legal and technical aspects, ensuring they comply with regulations and implement the latest technologies. However, they often overlook the consumer perspective, which is critical for ethical marketing.
Companies need to understand consumer needs and preferences regarding data usage and AI. The focus should shift toward "ethical marketing" and "responsible marketing," emphasizing building trust and transparency with consumers.
Q: How can companies improve consumer understanding of how their data is used, especially in the context of AI?
A: The first step is recognizing that the target audience for compliance differs from that for ethical marketing. Compliance is about meeting legal requirements and satisfying regulatory bodies.
In contrast, ethical marketing focuses on communicating clearly with consumers. Most consumers don't care about legal jargon; they want straightforward, understandable information.
Companies should conduct market research to determine how consumers prefer to receive information about data usage and AI. This could include surveys or focus groups to gather insights directly from different consumer segments.
It's essential to present this information in a simple and accessible manner, perhaps through videos or interactive tools, rather than lengthy, complex privacy notices. The goal should be to design transparency that prioritizes the user experience (UX) and user interface (UI), catering to the preferences of diverse consumer groups.
Q: During our interview, you touched on the difference between the "letter of the law" and the "spirit of the law." How does this distinction impact transparency efforts?
A: The "letter of the law" refers to adhering strictly to legal requirements, such as providing privacy notices that fulfill regulatory criteria. However, these notices are often filled with legal jargon and lengthy texts that few consumers read or understand. While these documents ensure compliance, they don't necessarily promote genuine transparency.
On the other hand, the "spirit of the law" focuses on the true intent behind these regulations, ensuring consumers are informed and can make educated decisions about their data.
This means companies should go beyond merely being compliant and strive to provide real transparency that builds trust. This could involve using more consumer-friendly methods to communicate how data is collected, used, and protected. For instance, simplifying information and tailoring it to different audiences can make a significant difference.
Q: Does the term "responsible AI" convey a different meaning than "ethics"?
A: Yes, I believe "responsible AI" might resonate more with people than "ethics." The term "responsible" ties into concepts of corporate social responsibility (CSR) that people are more familiar with, such as environmental and social issues. It implies a proactive approach where companies not only comply with laws but also consider the broader implications of their actions.
Responsible AI goes beyond ethics; it involves ensuring that AI systems are designed and used in ways that prioritize fairness, transparency, and the well-being of consumers. It also encompasses developing policies and guidelines that reflect these values and ensuring these principles are embedded in every aspect of the company's operations.
Q: Should developing an AI ethics policy or code of conduct be a collective effort across the organization, or should marketing have its own specific guidelines?
A: It's a critical question. Currently, many AI ethics policies are created primarily by legal teams, focusing heavily on compliance. However, marketers should play a significant role in this process because they are closest to the consumers and understand their needs and concerns.
Whether it's a unified policy or a separate one for different departments, marketers need to be involved from the outset. They should collaborate with IT, legal, and ethical experts to ensure that the policy not only meets legal standards but also addresses consumer expectations and builds trust.
A project-based approach can be effective, bringing together diverse teams to develop a comprehensive policy that reflects the company's commitment to responsible AI and ethical practices.
While having separate policies might lead to silos, a unified policy that incorporates input from all relevant departments can provide a cohesive framework that addresses all aspects of responsible AI use.
Q: As AI continues to integrate into various aspects of our lives, how should we approach the coexistence of AI and human interaction in areas like content creation and customer service?
A: This is a fascinating and complex issue. As AI becomes more prevalent, society will need to find a balance between technology and human interaction. While AI can enhance efficiency and provide new capabilities, human relationships and interactions remain essential.
There will likely be a mix of both, depending on the context and the preferences of different demographic groups. For example, younger generations may be more comfortable with AI, while older generations may prefer human interaction. It's important to acknowledge these differences and offer options that cater to varying preferences.
Ultimately, the goal should be to use AI to complement human abilities, enhancing the overall experience without replacing the essential human element. Cultural factors will also play a role, as attitudes towards technology vary across regions.
Q: Thank you, Caroline, for this insightful discussion. It's clear that responsible AI and ethical marketing are crucial topics that will continue to evolve.
A: Thank you, Paul. It's been a pleasure to discuss these important issues. I'm looking forward to seeing how companies adapt and grow in their approach to AI and ethics.
Have a question or comment for Caroline? We’ll be sure to pass it along.
PS: Caroline and I are creating a course for marketing teams on the responsible use of AI. Look for it in the coming weeks. ~ Paul Chaney
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