NAIC SME BRIEFS 

Navigating Responsible AI in 
small and medium businesses 

Artificial Intelligence (AI) has evolved rapidly, becoming an indispensable tool 
for businesses of all sizes. However, as we move forward in this AI-driven world, 
the need for Responsible AI has never been more critical for Small and Medium 
Enterprises (SMEs). 

Responsible AI is the practice of developing and using 
AI systems in a way that provides benefits to individuals, 
groups, and wider society, while minimising the risk of 
negative consequences. 

Doing Responsible AI is an approach that ensures 
businesses use AI accurately, without bias, and in an 
accountable manner. In essence, when a business utilises 
AI, it becomes responsible for its actions, even when using 
off-the-shelf AI products. Let’s delve into what Responsible 
AI means for SMEs and the practical steps they should take 
to ensure it. 

Understanding Responsible AI 

Responsible AI is not just a buzzword; it’s a concept that 
reflects ethical business practices. Aurelie Jacquet from 
CSIRO defines it as ‘AI done well.’ In practical terms, 
Responsible AI involves deploying AI technologies in ways 
that are ethical, accountable, and unbiased. 



Practical steps for SMEs 

Implementing Responsible AI is a comprehensive process 
that encompasses various aspects of business strategy 
and governance. Here are some practical steps SMEs 
should consider: 

1. Clear goals: Before adopting AI, SMEs should establish 
clear goals for its use. Defining the desired outcomes 
and applications of AI is essential. 
2. Governance: Consider how AI will be governed and 
utilised. Recognise that AI systems evolve over time. 
Establish good governance practices that involve 
regularly adjusting risk profiles and oversight. 
3. Oversight mechanisms: Ensure your existing oversight 
mechanisms align with AI technology. Adequate 
monitoring and control systems are crucial. 
4. Legal and ethical implications: Identify potential 
legal, ethical, and regulatory implications associated 
with AI use. Compliance with legislative frameworks 
is imperative. 
5. Wellbeing: AI should contribute to the betterment of 
individuals, society, and the environment. Consider the 
broader impact of AI applications. 
6. Human-centered values: Respect human rights and 
diversity. Ensure that AI applications do not discriminate 
or violate fundamental rights. 
7. Fairness: AI should be inclusive and accessible. Avoid 
biases and exclusions in AI algorithms. 
8. Privacy and security: AI must respect and uphold 
privacy rights. Data protection is a critical aspect of 
Responsible AI. 
9. Reliability and safety: AI should operate reliably 
according to its intended purpose. Safety is paramount. 
10. Transparency: Users should be aware when they are 
engaging with AI. Understandability is key. 
11. Contestability: Allow individuals to challenge AI use 
through a transparent and timely process. 
12. Accountability: People responsible for AI should be 
identifiable and accountable for its outcomes. 
Data, privacy, and ethics in AI 

As SMEs embrace AI, questions arise concerning data, 
privacy, and ethics. AI heavily relies on extensive 
datasets, making privacy protection and ethical data 
use essential. Businesses must adhere to obligations 
under the Privacy Act 1988 (Cth) concerning data 
related to individuals. This includes responsibly 
handling the collection, use, integrity, correction, and 
disclosure of personal information, as well as ensuring 
individuals access to their data. 

Moreover, to maintain public trust and confidence, 
addressing potential bias and discrimination in data 
sources and AI systems is crucial. Transparency in AI 
use is paramount for building trust with customers 
and stakeholders. 

Best practices for SMEs 

A prudent approach for SMEs is to begin with a pilot 
AI program within the organisation before scaling the 
technology across the business. This allows for a controlled 
and measured adoption of AI, enabling businesses to 
understand and manage the impact of Responsible AI on 
their operations effectively. 

In conclusion, Responsible AI is not just a choice; it’s a 
necessity for SMEs in the age of AI. By adhering to ethical 
principles, taking practical steps, and understanding the 
intricacies of data, privacy, and ethics in AI, SMEs can 
embrace AI with confidence and contribute to a more 
responsible and accountable AI-driven future. 

Next steps 

To find out more about how the National AI Centre can 
help your SME become AI-ready, or to access responsible 
AI tools and resources, visit csiro.au/naic 

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