High-quality, reliable data has always been the foundation of informed decision-making.
Trustworthy and interrogatable data sets enable organizations to uncover valuable insights, identify trends, and make data-driven decisions that drive business success. LLMs are prone to hallucinations, and hence, the underlying models need to be trained with intelligence that can be trusted.
Trusted data is the foundation of successful AI. Despite genAI’s compelling benefits, which include rapid data access and analysis, the underlying challenge of ensuring data origin, quality, and integrity remains a critical concern.
In 2021, a tech real-estate marketplace company announced that it would use AI to estimate home values.
It started a division to directly buy homes from sellers based on AI-generated value estimates and then short-sell them based on market conditions. The value in this was minimized interaction between seller and buyer at that time when COVID was prevalent. The problem was in the estimate. The company took a massive inventory write-down, which it blamed on purchasing homes for prices higher than a reasonable sale price.
What was missing was a foundational set of master data applying to real estate information, which should have been included as part of the source data sets. A lack of adequate governance and planning led to the issue.
In hindsight, the AI model suffered a governance failure. When the housing market prices came down, its algorithms were not adjusted, and therefore, they overestimated demand and, hence, home prices. Also missing was a foundational set of master data applying to real estate information, which thus could not be harnessed.
AI has since evolved rapidly and, in its current state, makes available several compelling features that can be deployed across systems.
The following features enable proper governance through efficient, proactive measures:
AI can help improve the quality of underlying data that is used for decision-making and ensure compliance with industry and/or company standards.
This drastically reduces human intervention in the governance of data and saves time in manual and laborious work. Effective AI governance includes oversight mechanisms that address risks such as bias, privacy infringement, and misuse while fostering innovation and building trust.