The article I chose to discuss is “TRUST in Technology” from the
August 2020 issue of Internal Auditor magazine authored by Neil
Hodge.
“Prejudicial output” is considered by the author to be the most
significant risk of excessive reliance on Artificial Intelligence (AI). An
example cited is AI designed to review resumes for senior-
management positions, which the author claims will result in a
preponderance of middle-aged White men meeting the criteria.
In contrast to the author's opinion, this result is likely correct
because regardless of how much effort is made to establish objective
criteria, suitable minority candidates for such positions will always be
a lower proportion than their proportion in the overall U. S.
population. The reason is the long-established scientific fact that
population groups vary in their average IQ, which is an excellent if
imperfect predictor of overall success in life. Those doubting this are
referred to The Bell Curve (1995) by Richard J. Herrnstein and Charles
Murray.
While AI has improved significantly in its ability to handle ambiguity,
it cannot and likely never will be capable of handing the
“doublethink” (a term coined by George Orwell in 1984) required by
statements such as “We are an Equal Opportunity/Affirmative Action
employer.” – a contradiction in terms because if some applicants are
given preference by virtue of their immutable characteristics, which
is the commonly-accepted definition of affirmative action, there is no
equal opportunity.
The role of an internal auditor regarding the evaluation of AI in this
example goes far beyond the issues considered by an external
auditor. While an external auditor will be most concerned with
meeting legal requirements and ensuring internal controls are
effective, internal auditors must also address whether the system is
effective in selecting suitable candidates by procedures such as
comparing the recommendations made by the system to the
performance evaluations of employees hired.
Reading this article was worthwhile because it provided me with
important insights regarding the responsibilities of internal auditors,
which encompass far more than the traditional examination of
financial information and include evaluations of the efficiency and
effectiveness of various operating systems.
