Ethical Issues and Concerns of Artificial Intelligence in Co-Operative Development and Management

Abstract

Technological solutions in the Fourth Industrial Revolution (4IR), such as artificial intelligence (AI), are increasingly recognised as potential solutions to growing resource pressures across sectors, particularly in cooperatives. AI offers innovative ways to evaluate and enhance the quality of cooperative services. A key driver of its adoption is the belief that AI can alleviate cooperative professionals from time-consuming tasks. The 4IR, characterised by technological innovation, is transforming businesses across industries, with machines taking a central role. This shift enables organisations to achieve more with fewer resources, directly impacting labour markets and the workforce. In many instances, machines have replaced specific business processes, leading to social (emotional) and economic consequences for staff, professionals, and employees. As we transition into Industry 5.0, a further disruption is expected. This new phase emphasises collaboration between humans and smart machines to optimise business processes. AI holds the potential to make cooperatives more efficient, which is undoubtedly beneficial. However, increasing output could come at a cost, regardless of any savings made. Ensuring the ethical implementation of AI is crucial to safeguard cooperatives from operational, regulatory, and reputational risks. There are several ethical issues cooperatives must consider before adopting AI, particularly as these issues may impact cooperative development globally, and in East Africa in particular. Given the unique nature of cooperatives, with their emphasis on principles, core values, and ethical standards, the integration of AI raises questions about the social impact of replacing human labour with machines. This paper explores the ethical concerns cooperatives and other social sectors should address when anticipating the benefits of AI and 4IR, ensuring that the outcomes align with their fundamental values and mission.