Determining AI Risk Calculus Is A Crucial Formula For Successfully Adopting Modern-Day Chatbots And LLMs

InnovationAIDetermining AI Risk Calculus Is A Crucial Formula For Successfully Adopting Modern-Day Chatbots And LLMsByLance Eliot,Contributor.Forbes contributors publish independent expert analyses and insights. Dr. Lance B. Eliot is a world-renowned AI scientist and consultant.Follow AuthorApr 21, 2026, 03:15am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.When adopting AI, make sure to do an AI risk assessment that combines with a full-on cost-benefit analysis.gettyIn today’s column, I highlight the importance of doing an AI risk assessment when an organization is considering adopting modern-day generative AI and large language models (LLMs) to perform various functions or services.Here’s the backstory. Public and private institutions are rushing to make use of the latest chatbots. Some entities entirely skip putting together a cost-benefit analysis (CBA) before proceeding. That is an unwise omission and likely to end up in a debacle of an AI adoption. Even those who opt to perform a cost-benefit analysis often shortchange the process by neglecting to incorporate the risks associated with adopting AI. Their cost-benefit ROI gives a false impression and can lead them into all manner of AI pitfalls and failures.Widespread realization that there are AI risks has given rise to a slew of AI risk frameworks. Organizations are generally encouraged to leverage an AI risk framework whenever pursuing the acquisition and fielding of contemporary AI. One such framework was recently described in a helpful advisory report by the Taubman Center for State and Local Government at the Harvard Kennedy School (HKS). I will walk you through the key elements of the paper. The case studies laid out in the report emphasize a public sector setting, though they can readily be applied to private sector usage too. Let’s talk about it.This analysis of AI breakthroughs is part of my ongoing Forbes column coverage on th...