An AI system is rewarded for performing a task well and penalized for not performing it well. Over time, learning to maximize the rewards and develop a system that works.
Self-driving cars: the system is rewarded when it keeps a car on the road and gets it to the destination where it is supposed to go. It is penalized if the car goes off the road or hits another object.
Risks in the use of AI: AI systems are implemented in vast, complex environments, the data used and AI will change over time, the model may need to be changed, upgraded, or both, to reflect what is being done with the new data in the environment
Identifies individuals and groups that might be affected by the AI system. For example, human rights, the environment and society. Privacy comes into play here.
Recognizing that terminology can vary will allow you to align how specific terms are used and applied in your organization to ensure that your stakeholders are able to discuss AI use and risk management processes with clarity. Knowing how AI functions and when it is appropriate to use it as well as understanding the types of AI and the ways it can be used, will help determine whether the benefits to your organization of using AI are outweighed by the risks.