Meaning ● Algorithmic Governance in SMBs refers to the structured framework within which small and medium-sized businesses manage and oversee automated processes and decision-making systems driven by algorithms. This encompasses policies, procedures, and controls designed to ensure fairness, transparency, and accountability in automated business operations.
Scope ● It also involves managing the ethical considerations and potential biases embedded within algorithms that directly impact key SMB functions like marketing automation, customer relationship management (CRM), and supply chain optimization. Crucially, algorithmic governance in smaller firms necessitates simplified implementation and continuous monitoring to maintain alignment with business goals and regulatory compliance within a resource-constrained environment. The implementation includes defining clear roles and responsibilities related to algorithmic development, deployment, and impact assessment, ensuring algorithms enhance operational efficiency and foster sustainable business growth, not create unforeseen risks. Additionally, such governance facilitates trust with customers and stakeholders by demonstrating responsible use of artificial intelligence and data-driven strategies.
