Company Spectrum.com
Digital transformation is no longer only about adding an app or automating a back office. It also determines how a company handles data, recommendations, privacy and regulatory responsibility.
The government is examining whether Meta’s recommendation systems and paid promotion are compatible with intermediary safe harbour. The underlying issue applies to any company whose software actively decides what people see or how a transaction is completed.
Management should document the purpose of an algorithm, the data it uses, the controls around errors and the route for a customer to challenge an outcome.
Technology creates value when it is reliable and explainable. A system that cannot be audited is a risk even when its short-term metrics look strong.