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What does ethics mean in the AI context?

AI ethics asks whether the use of Artificial Intelligence in a certain form is justifiable – in addition to technical and legal questions. AI sorts applications, prioritizes customer inquiries, recommends prices, evaluates processes, or creates content. As soon as such systems impact people, AI ethics considers not only the benefit for your company but also the consequences for employees, customers, applicants, suppliers, or other affected parties.

It doesn't require an extensive ethics document, but a clear guideline: What problem, what goal, where to start? Terms like fairness, transparency, and responsibility become tangible only in specific cases – for example, when applicants are systematically rated lower, customers don't know they are communicating with an AI assistant, or a result isn’t simply dismissed with “The AI decided that.”

This gradually creates a practice of trustworthy AI, bringing real benefits to your company, ensuring trust among customers and employees, and thus strengthening competitiveness.

Two women smiling, text reads "Ethik im Kontext von KI" with logos of Baiosphere and DiNO. Blue geometric background with a play button symbol.

In conversation with Andrea Martin and and Prof. Dr. Elisabeth André

Responsible use of AI builds trust and is a prerequisite for successful implementation in the company. Key principles are transparency, fairness, explainability, data protection, and robustness to minimize risks like bias.

Andrea Martin (IBM) and Prof. Dr. Elisabeth André (University of Augsburg) give a brief insight.

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Portrait von Prof. Dr. Elisabeth André, Universität Augsburg
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Prof. Dr. Elisabeth André

University of Augsburg
Holder of the Chair for Human-Centered Artificial Intelligence, member of the Bavarian Ethics Council, and member of the Bavarian AI Council

Portrait von Andrea Martin, IBM
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Andrea Martin

IBM
CTO Ecosystem & Associations DACH, Leader IBM Watson Center Munich, IBM Distinguished Engineer, and member of the Bavarian AI Council

Portrait von Prof. Dr. Sven Nyholm, LMU München
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Prof. Dr. Sven Nyholm

LMU Munich
Professor of AI Ethics

Why is ethics important in the AI context?

An AI system can technically work reliably and still produce results that your company doesn't want – especially when people are evaluated, sorted, or treated differently. Large companies often set up their own ethics or governance committees for this; for most SMEs, addressing the crucial questions directly in the specific case is sufficient.

It's not only about how often a system is correct but how serious the consequences of a mistake are: A wrong product recommendation can be quickly corrected, but a faulty pre-selection of applicants weighs heavier. The question "Is it allowed?" does not automatically answer "Do we want to do it this way?" Legal requirements set the framework within which your company bears responsibility. Ethics remains a continuous process, closely linked to concrete AI use cases and subject to regular review.

Engaging with ethics is particularly useful when a company:

  • Uses AI to evaluate or pre-select people, for example, in applications,

  • Allows customers to interact directly with an AI assistant,

  • Makes AI-assisted decisions with financial or legal implications,

  • Uses generative AI for content that might appear genuine,

  • Is unsure whether a planned AI application is socially acceptable, or

  • Intentionally wants to strengthen trust among employees and customers.

The earlier you clarify ethical questions in specific use cases, the easier it is to anchor trustworthy AI in everyday work.

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KI-Risiken Die Debatte braucht mehr Differenzierung-Stellungnahme KI-Rat

Statement of the Bavarian AI Council on AI risks | September 15, 2026

The Bavarian AI Council assesses current AI risks and advocates for verifiable safety standards and a fact-based debate.

In 5 steps to trustworthy AI:

  • Step 1 – Clarify the actual role AI takes
    Check what the AI actually does in the workflow: Does it just provide information, give a recommendation, or determine the outcome because its recommendation is almost always adopted? If an AI sorts applications and low-rated ones are rarely viewed, it actually decides who gets an interview. With generative AI, there's the question of whether it produces content that customers might believe are statements from real people. What matters is the actual impact on people, not just the official purpose.

  • Step 2 – Look at the consequences for those affected and set a clear goal
    Formulate a specific, verifiable goal instead of a general intention – for instance: "By the end of the month, it will be clarified which applicants systematically perform worse in our AI pre-selection." Determine who is affected and what consequences arise: Incorrect information in customer service can usually be quickly corrected; a missed offer or applicant rejection weighs heavier. Pay attention to the balance between benefit and possible consequences – if your company saves only a little time while a mistake brings significant drawbacks for others, the use should be critically examined.

  • Step 3 – Choose a use case and look for systematic disadvantages

    Choose a narrowly defined use case as a starting point, instead of immediately examining all AI systems. Errors can't be completely avoided even in good systems; it becomes critical when certain groups repeatedly perform worse. Therefore, compare typical practical cases instead of just the average hit rate: Are certain applicants regularly rated lower? Does speech recognition function similarly well for all customer groups? Involve employees who work with the processes – their experiential knowledge recognizes borderline cases that numbers alone do not show.

  • Step 4 – Define responsibilities and clarify corrections
    Assign a fixed contact person who accompanies the use case, plans the timeframe, and reports progress to management. They determine when a human checks and corrects the AI recommendation – a formal approval isn’t enough if it's always adopted anyway. If people interact directly with AI or its evaluation has significant impacts, it should be clear what role the system plays and who to contact in case of problems.

  • Step 5 – Evaluate after 4 to 8 weeks and draw consequences
    At the beginning, schedule a firm appointment after 4 to 8 weeks for the review: Has the goal from step 2 been achieved? Are there still systematic disadvantages? Record the findings in writing. In the end, decide whether and how your company will use AI – perhaps only as a recommendation instead of a decision, or to forgo if a minor economic advantage is outweighed by significant disadvantages for others.

Podcast recommendation

Building Trustworthy Open Source AI

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STRATEGY

Strategic planning ensures competitive advantages and includes setting goals, identifying use cases, and integrating AI into the overall company strategy.

Data

Data is the foundation of every AI system. Their quality and integrity determine the applicability and performance of AI applications.

ECOSYSTEM

In AI use and implementation, collaborations can bring many advantages. A strong ecosystem promotes innovation through the transfer of knowledge, resources, and technologies.

FINANCING AND FUNDING

The costs of introducing AI vary between free versions and significant investments for developing proprietary solutions. There are various funding opportunities to alleviate the investment burden.

CULTURE AND MINDSET

An open and willing-to-learn corporate culture is fundamental for successfully implementing AI. The focus is on reducing reservations and fears and involving the workforce in the transformation process.

Organization

The use of AI requires a well-thought-out organizational structure. This forms the foundation for the sustainable development of AI technologies as well as effective collaboration between different departments and interdisciplinary teams.

Technical requirements

A robust and flexible infrastructure includes hardware and software components, network infrastructure, and development processes to successfully implement, train, test, and use AI models.

Talents and competencies

The development and integration of AI require a qualified team and specific knowledge. This includes both technical skills and strategic and infrastructural understanding.

Law and regulation

Compliance with legal requirements and standards is essential for the use of AI. With the EU AI Act, guidelines have been established for AI solutions that will apply in all EU countries when creating and using AI.

Ethics

Ethics in AI involves implementing moral principles to realize the benefits of AI and reduce risks. Topics such as transparency, fairness, avoidance of bias, explainability, and data protection are essential in this context.