The AI Traffic Light Model

The first question about AI in an organization isn't where to start. It's where using it would do more damage than good. A simple traffic-light model sorts every use into green (AI executes), yellow (AI assists, a human decides), and red (AI does not decide), and five boundaries define the red zone: hard-to-reverse actions, human accountability, data the organization doesn't control, judging people on partial information, and domains with nobody able to check the output.

The three zones

  1. Green — AI can execute
    • Low cost of error
    • The action is reversible
    • The data isn't especially sensitive
    • The output is relatively easy to check
    • There's a clear definition of a good result
  2. Yellow — AI assists, a person decides — There's meaningful business or human impact. AI can organize information, surface patterns, and recommend. It shouldn't make the call alone.
  3. Red — AI does not make the decision
    • High cost of error
    • The action is hard or impossible to reverse
    • The decision affects rights, health, money, or a career
    • You can't explain how the decision was reached
    • Nobody is qualified to genuinely supervise the system

The five boundaries of the red zone

  1. Decisions that are hard to reverse
  2. Human accountability
  3. Systems the organization doesn't control
  4. Judging a reality it can't actually see
  5. Places where nobody can check it
What is the maximum damage the system can do before someone notices?

Source: Where AI Does Not Belong Inside Your Organization

The traffic-light tool: where AI doesn't belong