Operationalising AI ethics is no longer a luxury (if it ever was) – in the current climate it’s a commercial necessity. As artificial intelligence plays an ever-larger role in business decision-making, the conversation around ethics is shifting from “nice to have” to a source of measurable business value.
Recent empirical research from Professor Dennis Hirsch, Director of Data and Governance at The Ohio State University, shows that companies prioritising ethical AI practices can expect to see clear returns:
- improved product quality,
- enhanced brand reputation,
- increased customer loyalty, and
- stronger employee satisfaction.
So, why are so many organisations still not prioritising it?
Objections to ethical AI
Despite growing awareness around the importance of operationalising ethical and responsible AI, several responses come up:
- “Ethics are too abstract – we need practical solutions.”
- “We’re too small to worry about this.”
- “Our AI works fine; there’s no problem to solve.”
- “It’s too expensive – we’ll focus on it later.”
But research from Hirsch and others shows that these arguments don’t stack up – not just morally, but commercially. In fact, the ROI of ethical AI is not only real – it’s increasingly visible.
The data is in: ethical AI delivers business value
In Hirsch’s 2024 coauthored report Responsible AI Management: Evolving Practice, Growing Value, a survey of 75 US-based data governance officials revealed that responsible AI management delivers significant business value.
1. Improved product quality
Notably, respondents identified improved product quality as the top benefit, surpassing even regulatory compliance and legal risk reduction. Ethical review processes uncover issues like data bias, model instability, or unintended outputs that can otherwise degrade performance. Better products lead to better customer experiences, fewer complaints, and ultimately, higher revenues.
2. Enhanced brand reputation
Trust in a business and brand accounts for a lot – and ethical AI plays a big role in building it. A Capgemini Research Institute study found that:
- 62% of consumers trust brands more when their AI is perceived as ethical.
- 61% will share positive experiences with friends and family.
- 59% show greater loyalty to ethically aligned companies.
Significantly, it’s also not just sentiment. Research also shows that companies with high ethical standards outperform their competitors by up to 10% in profit margin – proof that integrity pays. If that isn’t a clear business case for ethical AI, what is?
3. Increased customer loyalty
Ethical AI isn’t just good PR – it drives customer behaviour. According to recent research by Heart (2023):
- 82% of customers who trust a brand’s AI are more likely to stay loyal.
- 75% are more likely to recommend the brand.
- Companies implementing ethical AI report 20% higher customer retention and 15% more referrals.
These statistics point to a competitive advantage that no business designing, deploying or implementing AI systems should ignore.
4. Improved employee satisfaction
Ethics isn’t just outward-facing – unsurprisingly, it shapes internal culture too. A 2024 study by Soheila Sadeghi explored how AI’s integration can also affect employee engagement. Importantly, the study emphasises that AI systems can both support and undermine employee well-being, depending on their implementation and perception. Key takeaways include:
• Transparency in AI fosters trust among employees.
• Ethical AI practices correlate with higher job satisfaction, better mental health, and stronger retention.
In short, when employees feel that AI is being used fairly and responsibly, they’re more likely to stay engaged – and, indeed, stay.
Why aren’t more businesses leading in ethical AI?
The ROI is clear. So why is there still hesitation from some organisations to invest in ethical AI development and deployment?
Hirsch argues the gap comes down to organisational will. While the benefits of responsible AI are compelling, they’re often long-term. And in a world driven by quarterly targets, short-term gains tend to win. Business leaders are often under pressure to deliver fast wins, meet quarterly KPIs, and prioritise short-term performance over sustainable growth.
At EthicAI, we understand the pressure to show ROI. But we also see a growing disconnect: companies saying responsible AI is important but failing to act. It’s time to bridge that gap.
Doing good is good business
Ethical AI is not just a compliance checkbox. It’s a pathway to:
- Higher quality products
- Stronger brands
- More loyal customers
- Improved profit margins
- Happier employees
- A more sustainable, trustworthy future
At EthicAI, we’re here to help businesses move beyond talk – and toward real, measurable impact. Because doing the right thing isn’t just ethical – it’s strategic.
Is there a sufficient business business case for ethical AI? Absolutely. Does that mean all businesses are doing it? Not yet. But those that do (our clients amongst them) are already reaping the rewards.