AI has condominium communities talking. Some people feel apprehensive about the new technology, while others are excited about the possibilities. But everyone can agree that AI isn't going anywhere. Regardless of how you feel about it, it's important to understand the possibilities, best practices, and consequences of improper use.

Many management companies have already started using chatbots or AI assistants to streamline communication and optimize resource management without fully understanding how the information that the bot is receiving is being used or stored. AI can do much that humans cannot, but right now, it still has trouble understanding the importance of privacy and data security. It cannot distinguish sensitive material from other information, which can be problematic.

This is where AI ethics and human intervention come into play. AI ethics encompass principles of transparency, accountability, fairness, and privacy, each vital in preserving residents' personal information and trust.

This article will examine how AI integrations can inadvertently expose personal information, highlight the importance of responsible data handling, and emphasize the need for open communication with software providers and owners about how data is stored, shared, and used.

Balancing security and convenience: AI systems come with risks

Automation and data-driven decision-making offer clear advantages to residents and management. A detailed report by McKinsey & Company, a global management consulting firm, estimates the long-term AI opportunity at $4.4 trillion in added productivity growth potential from corporate use cases.

However, prioritizing business needs without considering risks can lead to biased resident screening, data security breaches and diminished resident trust.

If smart surveillance devices have been installed, AI systems collect and process large amounts of resident data, including names, contact details, financial information, and behavioural patterns.

AI tools can create detailed profiles of residents based on their interactions and data. Third parties could exploit that information for marketing or discriminatory purposes without residents' knowledge.

Similarly, data could easily get into the wrong hands if not managed carefully. A document with personal information could be uploaded to a digital library and made available to all residents. If someone uses an AI assistant to search for unrelated information, the system could pull that personal data and share it with someone who shouldn't see it.

Attempting to eliminate risk entirely can be counterproductive in practice because not all incidents and failures can be eliminated, states a report from the National Institute of Standards and Technology (NIST).

Instead, corporations and management companies should implement actionable risk management efforts and lay out clear guidelines for assessing the trustworthiness of AI systems before bringing them into their communities.

What are AI ethics, and why should condos care?

AI ethics are the moral principles that guide stakeholders toward responsible and fair development and use of AI.

When technology is designed to replicate human functionalities, human errors and biases will seep into the technology. AI ethics encourage management and board members to consider what impact an AI system could have on residents.

AI ethics facilitate a healthier relationship between humans and technology. As such, managers and boards won't fall into the trap of blindly trusting AI to perform perfectly. Approaches that enhance AI trustworthiness generally reduce negative AI risks. Characteristics of trustworthy AI systems include:

1. Reliable
2. Safe
3. Secure
4. Accountable
5. Transparent
6. Explainable and interpretable
7. Fair

Human judgment should be employed when evaluating AI trustworthiness. Different communities will have different expectations, and a platform that works for one building won't automatically satisfy the needs of another.

Responsible data handling

Work can be outsourced, but accountability cannot. Management still has an obligation to ensure personal data is protected. If a breach occurs, AI cannot be blamed.

If you cannot trust the AI platform to safeguard residents' autonomy, identity, and dignity reasonably, then it's not the right platform.

Treat sensitive information with care and consideration. If you upload documents to a shared digital database, ensure personal data is either redacted or added to files with restricted access.

Take advantage of any safety features that come with the AI platform. Look for solutions that support end-to-end encryption for resident data storage and transmission.

Use access controls to limit data exposure. Only give access to those who need it to complete their jobs successfully.

Finally, limit AI's access to only necessary data to prevent over-collection or misuse if possible.

Knowledge is power

To master AI, you need to know how it works and why it makes its choices. Most boards and managers will purchase AI tools from a third-party vendor, where they will get the answers they need to use the tool confidently.

Formulate questions using the trustworthy characteristics list. For example, ask about the privacy features and safeguards built into the system. Ask how and where your data is stored and if anyone else has access to it. You should not only be able to understand how the tool works but also explain it to residents.

Speaking of residents, share what you've learned about the AI solution with them.

1. Communicate data collection policies. Residents have a right to know where their information is going
2. Provide residents with opt-in or opt-out choices
3. Share best practices to help residents avoid data privacy complications

By fostering high levels of understanding, residents and staff can use AI effectively and enjoy more benefits.

A transparent system does not guarantee it is secure, fair or reliable. However, it is easier to understand where problems originate when communities know how the technology works.

Conclusion

By voluntarily embracing ethical standards and maintaining sound data handling practices, condo communities can benefit from AI's efficiencies without compromising residents' confidence or privacy rights. AI can make life easier for managers and boards, but they must still act responsibly and use good judgment to see long-term success.

Phillip Livingston is the Director of Marketing at Condo Control, an AI-powered resident experience platform designed to shape the future of community living. Phillip is always looking for better ways to help clients and stay current with industry trends and best practices in marketing. He was also a happy Condo Control user, using the platform as a resident before he joined the team.

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