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00:00CAROLINE: AND STAYING WITH THE WORLD OF ARTIFICIAL INTELLIGENCE, I SPOKE WITH THE MANAGER OF IBM AND WATSON TODAY ABOUT SOME OF THE MORE CONTROVERSIAL USES OF TECHNOLOGY. HERE ARE THE -- HERE'S MORE ON THAT. >> WE HAVE FOUR PILLARS OF TRUST, AND IT IS GROUNDED IN THE ETHICS COMMUNITY. IS IT FAIR, EXPLAINABLE, ROBUST, AND ACCOUNTABLE? THAT MEANS A LOT OF WORK ON TRACEABILITY. WE HAVE A LOT OF WORK UNDERWAY ON THIS. RECENTLY, WE WERE HELPING THE EUROPEAN UNION ON THE RECENT GUIDELINES AROUND AI AND ETHICS THEY HAVE RELEASED, WE ARE A PART OF THAT AS WELL AS A NUMBER OF DIFFERENT PROGRAMS AROUND THE WORLD TO HELP AGENCIES, CUSTOMERS, AND TECH COMPANIES THINK ABOUT HOW DO WE USE THIS TECHNOLOGY IN THE BEST WAY WE POSSIBLY CAN? CAROLINE: DOES IT NEED GOVERNMENT REGULATION, DO YOU THINK? >> I THINK IT IS IMPORTANT THAT WE WELCOME GOVERNMENT REGULATION UNDERSTANDING IT. THAT IS CRITICAL. THAT IS HOW PART OF OUR WORK HAS BEEN, HOW DO WE HELP GOVERNMENTS TO UNDERSTAND THE TECHNOLOGY BETTER, AND IT CAN LEAD TO THINGS LIKE A NATIONAL AI STRATEGY. WE HAVE BEEN PART OF ADVISING THE U.S. ON THAT, ON THE EUROPEAN UNION EXAMPLE WITH ETHICS, WE HAVE BEEN A PART OF IT. THOSE ARE WAYS GOVERNMENTS CAN PARTICIPATE. I THINK IT COMES BACK TO THE POINT OF, HOW DO YOU GET TRUST AROUND THE DATA AND TRUST AROUND WHAT IS HAPPENING WITH THAT? THAT IS CRITICAL, AND ONCE THAT HAPPENS, WE WILL SEE EVEN MORE EXPANSION THEN WE HAVE SEEN SO FAR, WHICH GETS US BACK TO THE $15.7 TRILLION OPPORTUNITY. CAROLINE: WHAT ISN'T THE GOVERNMENT UNDERSTANDING? THE FEAR FACTOR THAT THE ROBOTS WILL TAKE OVER, BECOME MORE INTELLIGENT THAN HUMANS AND TAKE US OUT OF EXISTENCE? >> WHATEVER IT IS GOVERNMENT OR ANYBODY, THE UNINFORMED DO NOT UNDERSTAND HOW IT CAN HELP YOU -- HELP HUMANS. IT IS ABOUT AUGMENTING HUMANS IN WHAT THEY DO AND BEING ABLE TO SURFACE AND UNDERSTAND MORE INSIGHTS, AND HAVING KNOWLEDGE OF A LOT MORE THINGS. ONE EXAMPLE WE HAVE DONE RECENTLY WITH UXO -- WITH ALEXA IN EUROPE AROUND THEIR NEW E.M. MODEL AND THE LAUNCH OF THAT WAS TO HELP CREATE AN ADVERTISEMENT RELATED TO THE LAUNCH. IN ORDER TO DO THAT, ALL OF THE CREATIVE PEOPLE WERE A PART OF IT. AN OSCAR-WINNING FILMMAKER, ETC. BUT THEY WERE NOW ABLE TO USE 15 YEARS OF DATA AND EXAMPLES TO HELP INFLUENCE HOW TO CREATE SOMETHING THAT IS NEW AND COMPELLING, BUT ALSO TIES BACK TO WHAT THE BRAND WAS ALL ABOUT? THAT WOULD TAKE HUMAN BEINGS, THAT WOULD TAKE ANY OF US WEEKS TO GO THROUGH. THAT IS AN EXAMPLE OF HOW IT ENDS UP HELPING. CAROLINE: YOU HAVE ALSO WORKED WITH ANOTHER AUTO BRAND, TALKING ABOUT A VOICE ACTIVATION OR VOICE ASSISTANTS FOR MERCEDES. IT IS INTERESTING IN TERMS OF THE BIASES THAT CREEP THEN WHEN IT COMES TO VOICE ASSISTANTS. WE HAD A STORY THE OTHER DAY ABOUT HOW THEY ALL SEEM TO BE FEMALE. TALK ABOUT THAT, HOW ARE WE ENSURING THAT BIASES ARE NOT BEING BAKED INTO CERTAIN SITUATIONS? >> ACTUALLY, THEY END UP WITH TYING TO THE BRAND OF THE COMPANY. THAT IS WHAT OF THE THINGS WE FOCUSED ON FROM THE BEGINNING. IT IS IMPORTANT FOR OUR CUSTOMERS TO BE ABLE TO DELIVER THEIR BRAND AS A PART OF IT. MANY OF THEM HAVE MALE NAMES. SO THE ROYAL BANK OF SCOTLAND HAS CORA, MARGE, AND ARCHIE. YOU END UP WITH DIFFERENT ONES AS A PART OF IT. THERE ARE A LOT THAT ARE FEMALE IN NATURE, BY THEIR NAMES, BUT IT REALLY COMES BACK TO THE CULTURE OF THE CUSTOMERS THAT, THE CULTURE OF THE BUSINESS, AND THE BRAND. CAROLINE: THIS IS BLOOMBERG.

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IBM Watson GM Beth Smith on the Ethics of AI

Beth Smith, IBM Watson Data & AI general manager, discusses the ethics of artificial intelligence with Bloomberg's Caroline Hyde on "Bloomberg Markets: The Close." (Source: Bloomberg)

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