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Il Sole 24 Ore: Integrating Artificial Intelligence into the Enterprise – Challenges and Opportunities for CEOs and Management
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
April 14, 2025

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Expert Pierluigi Casale analyzes the adoption of AI by companies, the ethical and regulatory challenges and the differentiated approach between large companies and SMEs

By Gianni Rusconi

Easier said than done: to paraphrase the well-known proverb, and to place it in the increasingly large collection of critical issues and opportunities related to artificial intelligence, the task that CEOs and management have to adequately integrate this technology into the company is indeed difficult. Pierluigi Casale, professor at OPIT (Open Institute of Technology, an academic institution founded two years ago and specialized in the field of Computer Science) and technical consultant to the European Parliament for the implementation and regulation of AI, is among those who contributed to the definition of the AI ​​Act, providing advice on aspects of safety and civil liability. His task, in short, is to ensure that the adoption of artificial intelligence (primarily within the parliamentary committees operating in Brussels) is not only efficient, but also ethical and compliant with regulations. And, obviously, his is not an easy task.

The experience gained over the last 15 years in the field of machine learning and the role played in organizations such as Europol and in leading technology companies are the requirements that Casale brings to the table to balance the needs of EU bodies with the pressure exerted by American Big Tech and to preserve an independent approach to the regulation of artificial intelligence. A technology, it is worth remembering, that implies broad and diversified knowledge, ranging from the regulatory/application spectrum to geopolitical issues, from computational limitations (common to European companies and public institutions) to the challenges related to training large-format language models.

CEOs and AI

When we specifically asked how CEOs and C-suites are “digesting” AI in terms of ethics, safety and responsibility, Casale did not shy away, framing the topic based on his own professional career. “I have noticed two trends in particular: the first concerns companies that started using artificial intelligence before the AI ​​Act and that today have the need, as well as the obligation, to adapt to the new ethical framework to be compliant and avoid sanctions; the second concerns companies, like the Italian ones, that are only now approaching this topic, often in terms of experimental and incomplete projects (the expression used literally is “proof of concept”, ed.) and without these having produced value. In this case, the ethical and regulatory component is integrated into the adoption process.”

In general, according to Casale, there is still a lot to do even from a purely regulatory perspective, due to the fact that there is not a total coherence of vision among the different countries and there is not the same speed in implementing the indications. Spain, in this regard, is setting an example, having established (with a royal decree of 8 November 2023) a dedicated “sandbox”, i.e. a regulatory experimentation space for artificial intelligence through the creation of a controlled test environment in the development and pre-marketing phase of some artificial intelligence systems, in order to verify compliance with the requirements and obligations set out in the AI ​​Act and to guide companies towards a path of regulated adoption of the technology.

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Agenda Digitale: Generative AI in the Enterprise – A Guide to Conscious and Strategic Use
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
March 31, 2025

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By Zorina Alliata, Professor of Responsible Artificial Intelligence e Digital Business & Innovation at OPIT – Open Institute of Technology

Integrating generative AI into your business means innovating, but also managing risks. Here’s how to choose the right approach to get value

The adoption of generative AI in the enterprise is growing rapidly, bringing innovation to decision-making, creativity and operations. However, to fully exploit its potential, it is essential to define clear objectives and adopt strategies that balance benefits and risks.

Over the course of my career, I have been fortunate to experience firsthand some major technological revolutions – from the internet boom to the “renaissance” of artificial intelligence a decade ago with machine learning.

However, I have never seen such a rapid rate of adoption as the one we are experiencing now, thanks to generative AI. Although this type of AI is not yet perfect and presents significant risks – such as so-called “hallucinations” or the possibility of generating toxic content – ​​it fills a real need, both for people and for companies, generating a concrete impact on communication, creativity and decision-making processes.

Defining the Goals of Generative AI in the Enterprise

When we talk about AI, we must first ask ourselves what problems we really want to solve. As a teacher and consultant, I have always supported the importance of starting from the specific context of a company and its concrete objectives, without inventing solutions that are as “smart” as they are useless.

AI is a formidable tool to support different processes: from decision-making to optimizing operations or developing more accurate predictive analyses. But to have a significant impact on the business, you need to choose carefully which task to entrust it with, making sure that the solution also respects the security and privacy needs of your customers .

Understanding Generative AI to Adopt It Effectively

A widespread risk, in fact, is that of being guided by enthusiasm and deploying sophisticated technology where it is not really needed. For example, designing a system of reviews and recommendations for films requires a certain level of attention and consumer protection, but it is very different from an X-ray reading service to diagnose the presence of a tumor. In the second case, there is a huge ethical and medical risk at stake: it is necessary to adapt the design, control measures and governance of the AI ​​to the sensitivity of the context in which it will be used.

The fact that generative AI is spreading so rapidly is a sign of its potential and, at the same time, a call for caution. This technology manages to amaze anyone who tries it: it drafts documents in a few seconds, summarizes or explains complex concepts, manages the processing of extremely complex data. It turns into a trusted assistant that, on the one hand, saves hours of work and, on the other, fosters creativity with unexpected suggestions or solutions.

Yet, it should not be forgotten that these systems can generate “hallucinated” content (i.e., completely incorrect), or show bias or linguistic toxicity where the starting data is not sufficient or adequately “clean”. Furthermore, working with AI models at scale is not at all trivial: many start-ups and entrepreneurs initially try a successful idea, but struggle to implement it on an infrastructure capable of supporting real workloads, with adequate governance measures and risk management strategies. It is crucial to adopt consolidated best practices, structure competent teams, define a solid operating model and a continuous maintenance plan for the system.

The Role of Generative AI in Supporting Business Decisions

One aspect that I find particularly interesting is the support that AI offers to business decisions. Algorithms can analyze a huge amount of data, simulating multiple scenarios and identifying patterns that are elusive to the human eye. This allows to mitigate biases and distortions – typical of exclusively human decision-making processes – and to predict risks and opportunities with greater objectivity.

At the same time, I believe that human intuition must remain key: data and numerical projections offer a starting point, but context, ethics and sensitivity towards collaborators and society remain elements of human relevance. The right balance between algorithmic analysis and strategic vision is the cornerstone of a responsible adoption of AI.

Industries Where Generative AI Is Transforming Business

As a professor of Responsible Artificial Intelligence and Digital Business & Innovation, I often see how some sectors are adopting AI extremely quickly. Many industries are already transforming rapidly. The financial sector, for example, has always been a pioneer in adopting new technologies: risk analysis, fraud prevention, algorithmic trading, and complex document management are areas where generative AI is proving to be very effective.

Healthcare and life sciences are taking advantage of AI advances in drug discovery, advanced diagnostics, and the analysis of large amounts of clinical data. Sectors such as retail, logistics, and education are also adopting AI to improve their processes and offer more personalized experiences. In light of this, I would say that no industry will be completely excluded from the changes: even “humanistic” professions, such as those related to medical care or psychological counseling, will be able to benefit from it as support, without AI completely replacing the relational and care component.

Integrating Generative AI into the Enterprise: Best Practices and Risk Management

A growing trend is the creation of specialized AI services AI-as-a-Service. These are based on large language models but are tailored to specific functionalities (writing, code checking, multimedia content production, research support, etc.). I personally use various AI-as-a-Service tools every day, deriving benefits from them for both teaching and research. I find this model particularly advantageous for small and medium-sized businesses, which can thus adopt AI solutions without having to invest heavily in infrastructure and specialized talent that are difficult to find.

Of course, adopting AI technologies requires companies to adopt a well-structured risk management strategy, covering key areas such as data protection, fairness and lack of bias in algorithms, transparency towards customers, protection of workers, definition of clear responsibilities regarding automated decisions and, last but not least, attention to environmental impact. Each AI model, especially if trained on huge amounts of data, can require significant energy consumption.

Furthermore, when we talk about generative AI and conversational models , we add concerns about possible inappropriate or harmful responses (so-called “hallucinations”), which must be managed by implementing filters, quality control and continuous monitoring processes. In other words, although AI can have disruptive and positive effects, the ultimate responsibility remains with humans and the companies that use it.

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Agenda Digitale: Artificial Intelligence – What is the Impact on the Three Pillars of Our Society
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
March 31, 2025

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By Pierluigi Casale (Associate Professor and Area Chair in AI of OPIT, Open Institute of Technology)

AI is revolutionizing institutions and education, but also our daily lives, improving decision-making and energy efficiency, city management, and personalizing learning. Current choices will determine the future of this technology, which must remain a support for humans and not an uncontrolled substitute.

Artificial Intelligence (AI) is now at the center of a global debate that touches on regulatory, ethical, geopolitical and applicative aspects. Its evolution, from an experimental technology to an essential tool for analysis and automation, has led to the need for a clear regulatory framework and responsible use.

In my role as an official of the European Parliament, I work on the implementation and oversight of AI systems within the European institutions, contributing to the regulation and management of the challenges that this technology brings. It is important to underline that this article represents only my personal opinion and in no way represents an official position of the European Parliament.

Europe and the regulation of artificial intelligence

Europe is tackling the challenge of regulating AI with the AI ​​Act Regulation, the first comprehensive framework for this instrument. The aim is to find a balance between innovation and the protection of fundamental rights, preventing big tech companies from shaping legislation to their advantage.

Artificial intelligence is nothing more than advanced software and, as such, must be carefully regulated. If used correctly, it can represent an extraordinary opportunity to improve the efficiency and accessibility of information, but it is essential to avoid abuse and market distortions. Something is moving. The AI ​​Act came into force on August 1, 2024. Starting from February 2, 2025, new restrictions have been introduced on some AI practices deemed dangerous , while from August 2, 2025, the full application of governance rules and obligations for general AI models will begin, including verification processes to ensure compliance of AI systems already in use in companies and institutions.

The Ethical Challenges and Risks of AI: Bias, Privacy and Autonomy

Yet there are still several aspects to be fixed. One of the most evident problems of AI concerns algorithmic bias. Facial recognition systems, for example, have returned discriminatory content towards ethnic groups not adequately represented in the training data. This is a clear signal of the need for more inclusive and transparent models.

But there are other open problems: regarding privacy, for example, some AI models (such as DeepSeek) collect sensitive data, including the way we type on the keyboard; the issue of the spread of fake news or autonomy of choice is also always current, just think of the risks that delegating critical decisions to AI in the medical, legal or financial fields can entail. Regulation must ensure that AI remains a support tool and not an uncontrolled substitute for human evaluation.

This is the starting point. If established, shared and guaranteed, then AI can truly be the fulcrum around which the industrial revolution of this century revolves. In some areas it is already like this.

The impact of AI on three pillars of our society : institutions, education and daily life

Once this perimeter is defined, artificial intelligence can have a revolutionary impact on three fundamental pillars of our society: institutions, education and the quality of daily life.

AI in Institutions: Opportunities and Limitations

In institutions, AI can improve the efficiency of decision-making processes, data management and infrastructure security, contributing to more transparent and responsive governance; in education systems, it allows for personalizing learning, supporting the development of digital skills and reducing inequalities in access to knowledge; while, in terms of sustainability and urban management, it offers solutions to optimize energy consumption, improve mobility and promote the creation of more resilient and inclusive smart cities. The common thread that unites these areas is the need for synergic and conscious innovation, capable of integrating AI and putting it at the service of man, ensuring that technological progress is not an end in itself, but oriented towards collective well-being and sustainable development.

AI has been introduced in various institutions, including public ones, to support translators, improving productivity and accuracy. Other very advanced systems allow extracting key information from complex legislative texts. AI is used to protect IT infrastructure and manage data. However, there are significant limitations. For example, a large number of these technologies are trained only on majority languages ​​(English, French, German), creating problems for languages ​​whose presence in the digital world is minority, such as Lithuanian or Maltese. Furthermore, with the entry into force of new regulations, it will be essential to verify that all AI systems used in institutions comply with the criteria of transparency, fairness and security.

AI in Education: Personalization and Democratization of Learning

While AI is revolutionizing institutional and legislative dynamics, its impact is equally significant in the field of education, where it offers new opportunities to personalize learning and improve teaching effectiveness. AI is transforming the way we learn and teach. At OPIT, the university where I teach, we use generative AI to personalize training courses, adapting content to the learning style of each student, improve access to information, with tools that explain code and transform programming languages, support students in checking code, identifying errors and suggesting improvements. AI can democratize education, making it more flexible and effective, without replacing the teacher but acting as a Copilot, an intelligent assistant that guides the student on his path.

AI for sustainability and quality of urban life

In addition to transforming institutions and education systems, AI is also proving its value in areas that are crucial to sustainability and quality of life , such as energy efficiency and city management. For example, DeepMind developed an AI system that significantly improved the energy efficiency of Google’s data centres. This system reduced the energy used for cooling by 40%, leading to an overall improvement of 15% in energy efficiency in some data centres. AI now directly controls cooling systems at some sites, again under human supervision, demonstrating the potential of AI to reduce energy consumption in energy-intensive sectors. Or, with products like TomTom’s Traffic Index, it helps redistribute traffic in cities, reducing congestion.

According to one study, using real-time data for traffic management can reduce commute times in cities by 15-20%. In addition, AI could revolutionize urban resource management, although the full realization of smart cities is still far away. The main obstacle remains the lack of adequate infrastructure in public institutions, which often lack the necessary computational resources.

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Il Sole 24 Ore: OPIT reaches its first milestone and celebrates its graduates in Applied Data Science & AI
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
March 31, 2025

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Just two years after its launch, the online and European-accredited academic institution, whose rector is former minister Francesco Profumo, confirms its growth with over 300 students from 78 countries and an international faculty of excellence.

OPIT (Open Institute of Technology), the European accredited academic institution (www.opit.com), has achieved its first milestone since it entered the higher education market in 2023: 40 students from 6 continents have completed the first master’s degree in Applied Data Science & AI, whose classes began in September two years ago.

The graduation ceremony took place at the central Casino Maltese in Valletta, Malta, where OPIT is regularly accredited, in the presence of Francesco Profumo and Riccardo Ocleppo, respectively Rector and founder, the Maltese Minister Clifton Grima (Education, Sport, Youth, Research and Innovation), and Rose Anne Cuschieri, CEO of the MFHEA authority. In addition to the graduates, the guests included some of the internationally renowned professors of the academic institution, such as Pierluigi Casale, Tomislav Vazdar, Art Sedighi and Francesco Derchi.

The projects

The students’ thesis projects have developed on innovative topics: the use of large language models for the creation of chatbots in the ed-tech field, the digitalization of customer support processes in the paper and non-woven industry, up to personal data protection systems and the use of Artificial Intelligence for environmental sustainability, predictive models for the prevention of disasters linked to climate change, the fight against money laundering, new perspectives of generative AI in the legal field (with a focus on Italian startups such as Giurimatrix). All of this has also been developed thanks to the launch of strategic collaborations with partner companies such as Neperia, Sintica, Cosmico, Dylog, Buffetti Finance and Hype, demonstrating the concrete approach and strong practical component that characterize the OPIT training experience.

“Today we celebrate the first chapter of a journey that will continue to grow with a consolidation of the current educational offering, new courses, doctoral programs, applied research and increasingly advanced training opportunities. We are only at the beginning, but this day demonstrates that OPIT is already a consolidated reality in the international academic panorama and a point of reference for those who want to be protagonists of the digital future” – declared the Rector Francesco Profumo.

The degrees

With two degrees already started in September 2023 – a three-year degree in Modern Computer Science and the aforementioned master’s degree in Applied Data Science & AI – and four more starting in September 2024 (a three-year degree in Digital Business, and the master’s degrees in Enterprise Cybersecurity, Applied Digital Business and Responsible Artificial Intelligence, which brings the total offer to 6 degrees), today OPIT is a point of reference for those who intend to take on the challenges of a job market increasingly oriented towards artificial intelligence and technology in the broad sense. Entirely in English and online, OPIT is enhanced by a high-profile international teaching staff, coming from leading universities and companies at a global level: 45 professors with international experience in both the academic and business worlds. Many of them have collaborated with Amazon, the European Parliament, NASA, Philips and numerous other leading companies, demonstrating the approach based on excellence that the institution has pursued since its foundation.

Evolving educational offering

As part of the development roadmap, OPIT is completing the evolution of its educational offering. Alongside the training programs already underway, 2025 will also be the year in which the research area will develop, paving the way, in the coming years, for doctoral programs and aligning itself even more with what universities around the world are already doing. In particular, OPIT has already started applied research projects with some companies on the topics on which its teaching is based: AI, computer science, cloud computing and cyber security. This year, a pre-degree Foundation Program will also be introduced, designed to provide solid academic foundations to aspiring students who do not meet the admission requirements for three-year degrees.

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La Stampa: Artificial Intelligence, the questions to ask yourself
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
March 21, 2025

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By Francesco Profumo

Education must therefore change its paradigm: from a system based on the accumulation of knowledge to a process that teaches how to think.

We live in an era in which access to information has become immediate and unlimited. All it takes is an internet search or a question to a virtual assistant to get answers on any topic. Yet, precisely in a world so saturated with data, a crucial challenge for education emerges: it is no longer enough to teach what to know, but it becomes essential to educate in critical thinking, in the ability to discern, connect and, above all, ask the right questions. After Trump’s election as President of the United States, this need to be able to discern between true and false has become even more important and starting to educate the new generations and re-educate the more mature ones along these lines can no longer be postponed over time.

Until a few decades ago, the value of education was linked to the acquisition of knowledge. Studying meant accumulating notions, mastering facts and concepts and then applying them. Today, however, the context has completely changed. Information is available everywhere, often in real time. The problem is no longer finding it, but understanding which is reliable, which has value and which is, instead, the result of distortions or manipulations. This transformation leads us to radically rethink the educational model: school can no longer be a simple place for transmitting knowledge, but must become an environment in which one learns to reason.

To achieve this, we can look at an ancient and ever-present approach: the Socratic method. Socrates did not give answers, but guided his interlocutors in the search for truth through continuous dialogue. With pressing questions, he pushed them to reflect on their beliefs, to question apparent certainties and to build a more solid and profound understanding of reality. This method, based on maieutics, did not simply transmit notions, but developed a mental attitude: the ability to question, to doubt, to explore with a critical spirit. Today, more than ever, we need to recover this attitude. In a world where technology presents us with a continuous flow of information and artificial intelligence promises to answer all our doubts, what really matters is how we formulate our questions. Knowing how to question reality becomes more important than the simple act of receiving an answer. The advent of artificial intelligence is accelerating the need for an education based on reflection and not on the mere acquisition of data. AI systems can generate texts, solve problems, propose analyses. But those who learn to use them without developing critical thinking risk becoming passive users, unable to distinguish between what is true and what is manipulated, between what is useful and what is irrelevant.

For this reason, the school of the future should transform itself into a laboratory of thought, where students are no longer evaluated only on the basis of the answers they provide, but on the quality of the questions they are able to ask. An education based on the Socratic method could be expressed through lessons focused on comparison, on the critical analysis of sources, on discussions that push students to defend or question different positions. Let’s imagine a classroom in which students do not limit themselves to studying notions, but are guided to explore a topic through open and challenging questions. Instead of explaining a phenomenon, the teacher could start a discussion, encouraging students to think about its causes, its implications, and its connections with other disciplines. Artificial intelligence could also become an active learning tool: not as a simple provider of answers, but as an interlocutor to interact with, to whom to submit increasingly sophisticated questions, experimenting with how the quality of interaction depends on the ability to formulate complex and well-structured questions.

Education must therefore change its paradigm: from a system based on the accumulation of knowledge to a process that teaches how to think. We must train students who are capable of navigating knowledge, not just storing it. In a future where work itself will be increasingly based on the ability to innovate, connect ideas and solve complex problems, these skills will be essential. The great educational challenge of the coming years will no longer be to teach notions, but to cultivate the ability to question the world. The question we must ask ourselves today is not only what we must teach our children, but how we can educate them to think critically and creatively. If we want the new generations to be truly ready to face the era of artificial intelligence, we must offer them something that no machine will ever be able to replace: the ability to ask questions that matter.

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Avvenire: Malta Has the First Online Graduates in Artificial Intelligence
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
March 21, 2025

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  • Avvenire, published on March 20th, 2025

Diploma to the first 40 students of OPIT, Open Institute of Technology. Rector Profumo: “It is the first chapter of a path of continuous growth with new courses”

First graduates from OPIT (Open Institute of Technology), an exclusively online academic institution accredited at European level based in the Maltese capital Valletta. At the end of a study program that began in September 2023, 40 students from 6 continents have obtained a master’s degree in Applied Data Science & AI. The topics chosen for the theses are innovative: use of large language models for the creation of chatbots in the ed-tech field, digitalization of customer support processes in the paper and non-woven fabric industry, up to personal data protection systems and the use of Artificial Intelligence for environmental sustainability, predictive models for the prevention of disasters linked to climate change, fight against money laundering, new perspectives of generative AI in the legal field (with a focus on Italian startups such as Giurimatrix). The theses were also developed in collaboration with partner companies such as Neperia, Sintica, Cosmico, Dylog, Buffetti Finance and Hype.

“With these 40 graduates we celebrate the first chapter of a path that will continue to grow with a consolidation of the current educational offering, new courses, doctoral programs, applied research and increasingly advanced training opportunities”, underlines the rector of OPIT, Francesco Profumo.

OPIT currently offers six degree courses (a three-year degree in Modern Computer Science, a master’s degree in Applied Data Science & AI, a three-year degree in Digital Business and the master’s degrees in Enterprise Cybersecurity, Digital Business and Innovation and Responsible Artificial Intelligence), with a total catchment area of ​​over 300 students from 78 countries and 6 continents, with an average age of 35. 80% of the enrolled population is represented by working students, destined to double based on projections on the number of students enrolled in degrees starting in 2025. This year, moreover, the research area will also develop, paving the way, in the coming years, for doctoral programs and aligning itself even more with what universities around the world already do.

“The success of this first class of graduates represents a significant milestone for OPIT and confirms our mission: to offer a high-level technological education, accessible globally and able to concretely respond to the needs of a constantly evolving job market”, recalls Riccardo Ocleppo, founder of OPIT.

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Times of Malta: Students from across the globe graduate in hybrid ceremony in Valletta
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
March 19, 2025

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OPIT held its first ever graduation ceremony earlier this month

The Open Institute of Technology held its first-ever graduation ceremony in Valletta earlier this month, with students joining in person and virtually from across the globe.

The hybrid ceremony marked the successful completion of the Master of Science in Applied Data Science and Artificial Intelligence program by 20 OPIT graduates.

OPIT is a disruptive tech-focused higher education institution based in Malta.

With over 300 students from 78 countries, the institute offers EU-accredited undergraduate and postgraduate programmes in a variety of fields from game development, cyber security, and artificial intelligence.

The graduation ceremony was presided by Prof. Francesco Profumo, Rector of OPIT, and a former Education Minister of Italy.

He was joined by Ricardo Ocleppo, founder of OPIT, as well as Rose Anne Cuschieri, CEO of the Malta Further & Higher Education Authority (MFHEA).

“Our first ever graduation marks a new chapter not just for OPIT, but, and most importantly, for our graduates,” said Prof. Francesco Profumo.

OPIT’s approach to education integrates hands-on experience with cutting-edge technology, offering a practice-oriented curriculum that bridges the gap between theory and application.

    Ricardo Ocleppo, founder of OPIT.

Ricardo Ocleppo, founder of OPIT.

OPIT’s high-profile international teaching staff have been recruited from some of the best universities in the world, including Tier-1 institutes in the US, UK, Canada, Sweden, France, Germany, Italy, Brazil, Poland, Lebanon, and Spain.

On his part, Ricardo Ocleppo shared his reflections on how OPIT is dedicated to producing graduates who are not only job-ready but also prepared to lead the way in an ever-changing technological landscape.

Both Ocleppo and Profumo say they are on a mission to unlock students’ progress and employment on a global scale by providing high-quality and affordable education – a model based on the need for quality, flexibility, inclusivity, and the acquisition of crucial skills in future-ready sectors such as Artificial Intelligence.

OPIT’s student-centric approach delivers a combination of online learning and interactive discussions within a collaborative environment fostering advancement and innovation, including live lessons, masterclasses, videos, quizzes, exercises, and more internally developed digital content that students can access at any time.

With several students and faculty joining remotely, the ceremony also saw graduates present their capstone projects, many of which exhibit real-world applications of emerging technology.

More information about OPIT is available here.

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Sage: The ethics of AI: how to ensure your firm is fair and transparent
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
March 07, 2025

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By Chris Torney

Artificial intelligence (AI) and machine learning have the potential to offer significant benefits and opportunities to businesses, from greater efficiency and productivity to transformational insights into customer behaviour and business performance. But it is vital that firms take into account a number of ethical considerations when incorporating this technology into their business operations. 

The adoption of AI is still in its infancy and, in many countries, there are few clear rules governing how companies should utilise the technology. However, experts say that firms of all sizes, from small and medium-sized businesses (SMBs) to international corporations, need to ensure their implementation of AI-based solutions is as fair and transparent as possible. Failure to do so can harm relationships with customers and employees, and risks causing serious reputational damage as well as loss of trust.

What are the main ethical considerations around AI?

According to Pierluigi Casale, professor in AI at the Open Institute of Technology, the adoption of AI brings serious ethical considerations that have the potential to affect employees, customers and suppliers. “Fairness, transparency, privacy, accountability, and workforce impact are at the core of these challenges,” Casale explains. “Bias remains one of AI’s biggest risks: models trained on historical data can reinforce discrimination, and this can influence hiring, lending and decision-making.”

Part of the problem, he adds, is that many AI systems operate as ‘black boxes’, which makes their decision-making process hard to understand or interpret. “Without clear explanations, customers may struggle to trust AI-driven services; for example, employees may feel unfairly assessed when AI is used for performance reviews.”

Casale points out that data privacy is another major concern. “AI relies on vast datasets, increasing the risk of breaches or misuse,” he says. “All companies operating in Europe must comply with regulations such as GDPR and the AI Act, ensuring responsible data handling to protect customers and employees.”

A third significant ethical consideration is the potential impact of AI and automation on current workforces. Businesses may need to think about their responsibilities in terms of employees who are displaced by technology, for example by introducing training programmes that will help them make the transition into new roles.

Olivia Gambelin, an AI ethicist and the founder of advisory network Ethical Intelligence, says the AI-related ethical considerations are likely to be specific to each business and the way it plans to use the technology. “It really does depend on the context,” she explains. “You’re not going to find a magical checklist of five things to consider on Google: you actually have to do the work, to understand what you are building.”

This means business leaders need to work out how their organisation’s use of AI is going to impact the people – the customers and employees – that come into contact with it, Gambelin says. “Being an AI-enabled company means nothing if your employees are unhappy and fearful of their jobs, and being an AI-enabled service provider means nothing if it’s not actually connecting with your customers.”

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