The vast majority of UK business leaders are struggling to use data ethically within their organisation, with more than eight in ten confessing they feel morally uncomfortable with how they handle customer information.
That is the damning conclusion of a new study by data consultancy Profusion, which reveals that despite four-fifths (79%) of businesses declaring that they want to address data ethics challenges, less than a third (31%) stated it was among their top three governance priorities, with cyber security (42%), risk management (41%) and diversity and inclusion (41%) taking priority.
When asked what the biggest barriers to addressing data ethics were, 36% said lack of internal knowledge and expertise, 31% lack of training and 30% lack of perceived relevance.
Meanwhile, of the 83% of businesses that said they felt morally uncomfortable with how their organisation used data, 9% said it was a daily occurrence, 25% weekly and 16% monthly.
A third (33%) said they feared their algorithms were not being scrutinised for issues such as bias, while one in four said they were concerned that innovation was being held back by a lack of ethical and regulatory understanding.
Finally, only 16% of businesses said data ethics was the responsibility of their CEO or MD, but this increased to 29% for companies with more than 1,000 employees.
The release of the study coincides with the launch of Profusion’s ‘Good Data Guide’ in partnership with Pinsent Masons LLP.
The guide, which was made in consultation with representatives from a raft of organisations, including the London Stock Exchange Group, cyber experts Oscar O’Connor & Co and the University of Essex, is designed to provide a practical framework for how organisations of any size can use data ethically.
It aims to demystify data ethics to enable companies to adopt a strategic approach across their organisation, address specific organisational issues, and to evaluate new data initiatives.
The subjects covered include data management and security, the lifecycle of data, creating ethical algorithms and automations, algorithmic transparency and building diverse data teams.
Profusion chief executive Natalie Cramp said: “It is shocking, but also unsurprising, that so many businesses feel morally uncomfortable about how they use data. There is little practical guidance available, with data ethics often presented as a complex philosophy rather than a set of practical policies, KPIs and guardrails businesses can adopt. We hope to take a step forward in solving this problem.
“We’ve collaborated with experts from a range of specialties and industries to address a number of issues and give organisations, big and small, the tools they need to make ethical decisions around how they use their data now and in the future. Our hope is this becomes a ‘living document’ with organisations contributing to it and sharing best practice as they encounter new ethical challenges.”
Pinsent Masons strategic and digital advisor Sue Chadwick added: “The guide is distinguished by the range of contributors, the simplicity of its approach, and the commitment to remain agile and open to changes in law, guidance, or society.
“It recognises that technology develops quickly, while the law moves comparatively slowly, so we need to go beyond compliance to achieve ethical data use.”
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