Economics Analysis of AI in the Workplace: Ethical Issues

This essay provides a comprehensive analysis of artificial intelligence in the workplace, drawing upon concepts learned throughout the semester. It begins with an introduction to key economic principles and then delves into the practical applications of AI, emphasizing its role in decision-making and its impact on business growth. The paper extensively examines the ethical dimensions of AI, including privacy concerns, the potential for bias, and the broader societal implications of increasingly sophisticated AI systems. Real-world examples, such as the use of AI in law firms and HR departments, illustrate the tangible effects of AI implementation. The essay concludes by synthesizing the economic benefits of AI with the need for responsible ethical considerations, providing a balanced perspective on the future of AI in the business environment.

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ECONOMICS ANALYSIS AND DECISION MAKING OFARTIFICIAL INTELLIGENCE IN
THE WORKPLACE AND ITS CENTRAL ETHICAL ISSUES
by (Name)
The Name of the Class (Course)
Professor (Tutor)
The Name of the School (University)
The City and State where it is located
The Date

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Abstract
Over the course of this semester, we have had an opportunity to learn about some of the
most important concepts in business and economics. Fundamentally, the course introduced us to
the concept of economic analysis, decision making, and the use of artificial intelligence in the
workplace. As regards to the idea of artificial intelligence in the workplace, the course focus
mainly on the key and central ethical issues that surround their use and implementation in the
work environment. Aside from these key concepts, the course was a broad one, and therefore
provided the learners with an opportunity to gain knowledge on other areas. Thus, this paper is
going to provide a detailed overview of what I have learnt this semester as regards to the concept
of artificial intelligence.
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Contents
Introduction.................................................................................................................................................3
Analysis.......................................................................................................................................................4
Artificial Intelligence and Ethics.................................................................................................................5
Artificial Intelligence in the Workplace...................................................................................................6
Artificial Intelligence and Decision Making............................................................................................9
Artificial Intelligence and Growth.........................................................................................................13
Conclusion.............................................................................................................................................15
Reference List...........................................................................................................................................16

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Economics Analysis and Decision Making of Artificial Intelligence in the Workplace and its
Central Ethical Issues
Introduction
Some of the key topics we learnt over the semester in this course include economic
primer and basic principles, horizontal boundaries of the firm, integration and its alternatives, the
power of principles, market analysis, competitive analysis, entry and exit strategies, the
dynamics of competing across time, industrial analysis, strategic positioning for competitive
advantage, and information and value creation. Additionally, the book used for the course
explained the concept of sustaining competitive advantage, measurement of business
performance and incentives, strategy and structure, and even environment, power and culture.
Therefore, the course was particularly important in educating us on the most important concepts
in business. However, this paper shall focus on the aspect of artificial intelligence in the
workplace and the main ethical issues surrounding it. By and large, this concept is relevant and
important because Artificial intelligence has become part and parcel of the modern business
world. Companies all over the world are incorporating artificial intelligence into their operations,
and it is therefore important to consider its application as regards the workplace, ethics, decision
making as well as its contribution to the growth of the firm.
Analysis
Artificial intelligence refers to the simulation of human intelligence processes by
machines such as computer systems. These machines are often programmed to think like humans
and mimic the way people act (Tegmark, n.d.). By and large, the ideal characteristic of artificial

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intelligence is its ability to rationalize and take actions that have the best chance of achieving a
specific goal. Over the past few years, artificial intelligence has become a critical component in
the work place. Mainly, one can attribute this to the fact that technological advances have
become a major component of the modern business world (Mar, 2018). Today, AI is on the verge
of penetrating every major industry from healthcare, to transportation, advertising, education,
finance and legal. The simulation technique is changing both the competitive landscape and
customer expectations to create a culture shift at top organizations. As a result, this form of
digital transformation improves the way work is done within organization. Big organizations are
experiencing a culture shift. It also changing the competitive landscape and shifting the
expectations of stakeholders and clients that are changing virtually all aspects of how
organizations operate.
Today, there are three forms of artificial intelligence levels. The first one is the assisted
intelligence which refers to the automation of basic tasks. The second type is the augmented
intelligence. Primarily, this is an AI that learns from human input. As a result, it can make
accurate decisions based on the AI information that has been fed into the system. The last form
of AI is known as autonomous intelligence. This as an Artificial Intelligence with humans out of
the loop (How Artificial Intelligence, 2017). A perfect example of autonomous intelligence is the
self-thinking driving cars and autonomous robots.
Artificial Intelligence and Ethics
Artificial intelligence is one of the most ambitious scientific and engineering adventures
of all time. It is imperative to note that the possibility of creating thinking machines creates a
host of controversies and ethical concerns from the society. These concerns relate to both

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ensuring that such machines do not harm humans and other morally relevant beings, and the
moral status of the machines themselves (Burton, Goldsmith, Koenig, Kuipers, Mattei, Walsh,
2017). Recent dramatic progress in the technology has seen the invention of programs that are
able to achieve human acts such as self-driving cars being able to drive themselves on highways,
and city streets with an excellent safety record. As a result, these advances have prompted public
reaction and questions on the possible threats that these machines could pose to humans
(Tegmark, n.d.). As such, the integration of artificial intelligence to human life raises a number
of ethical questions. These questions include how should AIs behave in our society? What
should we do is jobs are in short supply? Should AI systems be allowed to kills? Should the
society worry about super-intelligence and the singularity? How should society we treat AIs?
(Burton et al., 2017).
By and large, the course taught us the importance of ethics and the issues surrounding the
ethical nature of Artificial intelligence. The goal of teaching this ethical theory was to better
equip us with the understanding of ethical problems by exposing us to multiple modes of
thinking and reasoning (Bostrom and Yudkowsky, n.d.). As a result, I am now better equipped
with the virtue of considering particular problems from a range of perspectives by considering
each problem in the light of different theories. Primarily, the main ethical concern that arises
from the use of artificial intelligence is the privacy concern. Privacy regards to the freedom from
interference and intrusion. Fundamentally, the Fourth Amendment safeguards and guarantees the
right of an individual to be secure in their persons, papers, houses, and effects against any
unreasonable searches and seizures. The law protects the individual against violation of their

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privacy and therefore should not be violated and no warrants are to be issued without probable
cause. Warrants are only permissible upon probable cause supported by oath and affirmation.
Today, it is generally agreed that AI technology has given rise to various controversies
pertaining to issues of invasion of privacy and moral concerns. AI applications such as Siri and
Alexa have been known to record private information about people through audio, and can be
used by malicious individuals to take advantage of people. As a result, this has brought about the
debates as regards to whether or not people can still enjoy their privacy while using AI enabled
gadgets. There has also been the aspect of super-intelligence and people are concerned that it
may be one of the biggest existential threats of all times (Burton et al., 2017).
Artificial Intelligence in the Workplace
During the semester, this course taught us the importance of Artificial Intelligence in the
workplace (Sharma, 2017). At the moment, Artificial Intelligence has been used in the form of
digital assistants such as Amazon’s Alexa, Microsoft’s Cortana, Google Assistant, Apple’s Siri,
Facebook’s M and Zuckerberg’s Jarvis (Sharma, 2017). Today, companies like Facebook,
Google and Spotify have invested in huge amounts in Artificial Intelligence Development.
Additionally, other firms in different industries have also firmly entered into the system are
adopting artificial intelligence in their operations.
Artificial Intelligence can play an important role in the workplace. Today, the technique
can be used to eliminate bias and lead to a more meritocratic workplace. Over the past few years,
various companies have adopted the program in their operations. According to a study by
Pegasystems and Marketforce, Artificial Intelligence and automation impacts are much more
nuanced, and the program has a positive impact on how employees work (Sharma, 2017). So far,

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artificial intelligence has proven very useful in the field of selection, recruitment, performance
reviews, and remuneration policies. According to the study, Sixty-six percent of the respondents
believe that the widespread use of AI will bring about a rise in transparent meritocracy in the
workplace (Sharma, 2017). On the other hand, 35 percent believe that the program will result in
a reduction in the level of office politics and bias. In their opinion, the decade long arguments
about bias and privilege could be resolved by the application of machine learning within
organization.
Furthermore, artificial intelligence removes and automates the ordinary and repetitive
tasks in the workplace that are inherent in running a business. By and large, artificial intelligence
is important in the workplace and has a powerful impact on streamlining the tasks. Furthermore,
it is adaptable to various environments and can be applied within a number of departments in a
company and across industries (Pedderson, 2018). It helps in asking basic questions and review
qualifications, allowing HR team to focus on important aspects such as human interactions and
getting to know the candidates better, and on a personal level (Pedderson, 2018). In this regard,
artificial intelligence improves the productivity of Human resource managers through
automation. Also, it can eliminate some of the risks that arise from human error and bias and
allows workers to identify and rectify these issues faster.
The interaction between human resources and artificial in the workplace provides the
promise of creating great value to modern organizations. As noted earlier, AI plays an important
role in selecting, recruiting, hiring, coaching, and employee service and development. Mainly,
this is done through the use of Chatbots. According to a recent survey by ServiceNow that
comprised of 350 HR leaders as respondents, 92 percent agreed that the future of providing an

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enhanced level of employee service will include this program (Meister, 2017). In their opinion,
Chatbot is the newest member of the HR team. Mainly, this is due to the fact that the program
allows employees to easily retrieve answers to frequently asked questions. What is more,
employees are very comfortable with accessing Chatbots to obtain information whenever they
need to make clarifications on various matters at the workplace (Meister, 2017). The type of
questions that employees feel comfortable asking using Chatbot range from the general ones to
the factual ones. For instance, they ask questions such as how much paid time off do I have left?
How do I report sexual harassment and misconduct experience at the workplace? (Meister,
2017).Therefore, the AI technology plays an important role in smoothening the HR and
employees experience at the workplace.
Personally, I have experienced the utilization of Artificial Intelligence in the modern
workplace. The organization was a law firm that utilized LawGeex. Primarily, LawGeex is an
existing AI review platform that analyses legal contracts. The platform is able to read a contract
for the company, even it is a new document that it has never seen before. It can also compare it
to a collection of similar contracts it has seen in the past for future reference. It is worth noting
that LawGeex functions fully just like real lawyers. Specifically, it remembers what contracts it
has seen before in the past for future references. Furthermore, the program plays the role of cloud
testing for the company. Thus it is very useful in test automation. My experience with the
program has shown that Artificial Intelligence can simplify the work in the workplace, especially
for the routine tasks. In this case, it has helped reduce the workload for the law firm by reducing
the large quantity of legal documents that the employees of the firm are expected to read and
inspect. Therefore, by reading through the contracts on behalf the lawyers at the firm, the

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workload is significantly reduced. Before the program was introduced and implemented,
employees of the firm were forced to read through a significantly large number of documents,
sometimes repetitively. The large workload and the repetitive nature of the task would
substantially reduce the morale of most workers. However, today, the process has been
simplified, thereby boosting the motivation of the employees at the organization. A boost in the
morale of the employees at the organization has translated to an increase in worker productivity
(Daniel, 2017). Consequently, an increase in worker productivity translates to an increase in
business returns and profits.
Artificial Intelligence and Decision Making
All in all, the future of artificial intelligence is one of overwhelming dominance and can
be useful in decision making. As companies change to keep the pace in the modern economy, AI
is developing into a critical asset for organizations by helping them gain an added advantage in
today’s highly competitive marketplace. At the moment, there is no custom-made strategy that
applies for all companies in implementing Artificial Intelligence within organizations. Therefore,
the management of any organization should work towards developing and adopting an artificial
intelligence program that works towards making the achievement of the goals and objectives of
the firm by making work easier. Artificial Intelligence techniques are continuously extending
and enriching decision making support. Decision making support is offered in terms of data
delivery, providing forecasts, analyzing data trends, developing data consistency, quantifying
uncertainties and suggesting courses of action, among others. Hence, apart from making work
easier, artificial intelligence can help in enriching the decision making process.

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Firstly, AI modeling and simulation programs play an important role in marketing
decisions. As usual, there are many complexities to each marketing decision. Therefore, the
marketing personnel must understand the needs of the customer and align the design of the
product to meet the needs and desires of the clientele. It is also vital for the company to have a
good grasp of the changing consumer behavior in order to make the best decision for the
company, both in the long run and the short run. In this regard, AI modeling and simulation helps
the company by making reliable insights about the buyer personas. In turn, these techniques can
be used to predict customer behavior and modify the services and products offered by the
company to suit the needs and desires of the client. Particularly, the Decision Support System,
the artificial intelligence system is able to support decisions through real-time and up-to-date
data gathering, forecasting and trend analysis. Additionally, the AI system enables many
automated functions such as data recording, contact management and lead ranking. AI’s buyer
persona modeling can also offer predictions of a customer’s lifetime value. What is more, sales
and marketing teams can work more productively through these features. In this respect, the
artificial intelligence program plays a critical role in decision making process in the marketing
field.
In addition, artificial intelligence plays an important role in data assessment and
recommendation, which can play an important role in investment decision making. Specifically,
AI can play an important role in financial management within a company. For instance, hedge
fund managers are getting interestingly interested in expert systems to reduce errors in
investment decision unlike most stock traders who utilize neural networks to forecast stock
performance through the analysis of past data (Daniel, 2017). As a result, they have a greater

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advantage of getting the best possible predictions and reducing errors in their investment
decisions. Thus investment managers who utilize the program get better forecast results on stock
prices and help make the best decisions and help them to bid accordingly. In turn, this ensures
that a superior investment decision is made, thereby guaranteeing the best results. Therefore, AI
is an important tool in the decision making of investment choices.
Furthermore, artificial intelligence has proven to be a useful decision making tool in the
healthcare industry. As we learnt in class, the program has undergone advancement over the past
few years. As a result, healthcare researchers throughout the world have shown interest in the use
of Artificial intelligence to help them save lives. For instance, a simulation model created by
researchers at the Indiana University can analyze patient’s historical data and recommend
treatment plans. Notably, these predictions and recommendations have been proven to be 50
percent effective at half the cost. In this regard, it is clear that AI has the potential to improve
decision making capabilities across various industries. Additionally, it has proven that it can
bring down the cost of various decision making processes, while at the same time make the best
decisions. Therefore, it is imperative to note that artificial intelligence has over the years
developed into critical decision making tools for various professionals.
Also, artificial intelligence paradigms are used to copy human behavior to support
decision making even under uncertain conditions. As such, the program uses symbolic logic,
artificial neural network, evolutionary computing, probabilistic reasoning models and Intelligent
Agents (Agrawal, Gans, and Goldfard, 2017). In traditional programming methodologies,
numerical calculations and explicit logic are provided to help solve problems and make informed
decisions about particular matters in business. In accounting, the program has been particularly