Rewired

Chapter 31Managing risk and building digital trust

Risk comes from not knowing what you're doing.

—Warren Buffett

Risks happen. And digital and AI transformations surface a whole new and complex set of interconnected risks. Rapid digital and AI innovations are taking place in an environment of increased regulatory scrutiny, where consumers, regulators, and business leaders are increasingly concerned about vulnerabilities across cybersecurity, data privacy, and AI systems.

From unintentional outcomes such as implicit bias in AI algorithms, to tragic accidents involving self-driving vehicles, and personal information leaks, no business, industry, or government is safe from digital and AI risks.

These issues are the reason consumers and regulators alike expect companies to establish and enforce strong digital trust practices. Digital trust means confidence that an organization protects consumer data, enacts effective cybersecurity, offers trustworthy AI-powered products and services, and provides transparency around AI and data usage.

Leaders who have established strong digital trust are less likely to experience downside risk through negative data and AI incidents, and are statistically more likely to outperform.¹ Many consumers – particularly those who are digitally savvy – consider trustworthiness and data protections to be nearly as important as pricing and delivery times.

For the purposes of this book, we will focus on the four digital trust capabilities that most directly ...