Ethics essential, not optional, for startups adopting AI

Utter the words “governance”, and half the room might tune out. But as industries accelerate their adoption of AI, “responsibility” and “ethics” are no longer just nice-to-haves — they are essential. 

As a startup mentor and adviser, with experience in both corporate (Unilever, Philips & IAB) and startups (Shazam, lastminute.com & my own mental health startup) I’ve seen first-hand the appeal for startups to “move fast and break things”, as well as the necessity for corporate to sit back and watch, from a safe distance. With AI, both these approaches are wrong and both worlds must collaborate to unlock AI’s potential, safely and sustainably. 

For startups aiming to scale and partner with established corporations, building ethically and responsibly with AI is not just smart — it’s crucial and could become their greatest differentiator. 

So how can startups innovate responsibly in the age of AI? And how can startups and corporates working together ensure they get the balance right, for mutual success? 

Industry leaders, startup founders, and corporate executives recently gathered to tackle these big questions at the first iteration of the InnovAItors event series, exploring how AI can bridge the gap between startups and corporates, driving growth and collaboration. 

I’m sharing here my biggest takeaways from the conversation. 

1. Start by asking what AI could do and what it should do

Dr. Kendra Vant is an AI leader and a huge advocate for the responsible use and innovation of AI. She’s studied quantum physics at MIT, she’s Xero’s former data and AI product division lead, and she’s an experienced AI adviser for boards and startups. 

“AI has the power to transform industries, but it also has the potential to cause harm if not used responsibly,” she said. 

Dr Vant shared a personal anecdote from her time at Xero, where AI was introduced to help automate tedious financial tasks. It was a win for efficiency, but also a stark reminder of how quickly jobs could be disrupted without careful consideration of the human element. 

“We spent as much time talking about what we wouldn’t automate as we did on what we would,” she recalled. 

“It was about understanding not just what AI could do, but what it should do.” 

The challenge isn’t just about building smarter algorithms, it’s about embedding values into the technology we create — it’s starting a conversation that many tech innovators might find uncomfortable, but necessary.

2. Balancing short-term speed and long-term reputation

AI development is full of contractions. On the one hand, companies are in a race to innovate, driven by market pressures and the fear of being left behind. On the other, the need to slow down and think about the ethical implications of technology is greater than ever. 

Lucio Ribeiro has led the marketing, digital and innovation team at Seven and Optus and co-hosts the InnovAItors series. 

He encapsulated this dilemma: “There’s this constant push-pull between getting things out fast and getting things right. The reality is, if you’re moving so fast that you don’t have time to check the impact of what you’re doing, you’re setting yourself up for long-term risks.” 

It’s a warning that many in the startup space should heed, especially as they strive to disrupt and scale rapidly. 

Lee Hickin, AI policy lead at Microsoft Asia, shared a candid story about a startup Microsoft partnered with that was eager to integrate AI tools to streamline customer service. However, the implementation raised significant concerns around data privacy and bias. 

“It wasn’t about saying ‘no’ to the tech,” Hickin explained, “but about guiding the startup to see the broader impact of what they were building. Sometimes the best innovation happens when you hit the pause button.” 

Hickin’s point underscored a critical lesson for all innovators: sometimes, slowing down is the best way to speed up. 

“Our goal is to enable innovation, but not at the cost of ethics,” he emphasised. 

His story also highlighted the importance of mentorship and collaboration between startups and corporates, especially in a landscape where startups might lack the resources or expertise to navigate complex ethical dilemmas on their own. 

But it’s also where opportunities lie. By collaborating on responsible innovation, startups and corporates can build trust and brand loyalty, two priceless assets in today’s marketplace. 

The key is finding a way to innovate without compromising ethical standards — a balance that requires transparency, accountability, and ongoing dialogue. 

For startups, this means setting up ethical guidelines from day one. For corporates, it means integrating these principles into every level of their operations, influencing everything from product design to marketing, including their supply chain.

3. Celebrating responsible innovation as a differentiator 

Innovation isn’t static — it evolves, and so should our approach to what successful innovation looks like. 

The biggest misconception in the industry is that speed is everything. In reality, a rush to innovate without ethical consideration can lead to long-term damage—both to brands and to society. 

In our industry, we often celebrate the rapid advancements in AI and tech, focusing on the flashy new features or the latest unicorn. But the stories behind responsible innovation can be equally compelling. 

As corporates and enterprises awaken to responsible AI, they’re leveraging their scale and resources to set the bar high, not just for compliance, but for genuinely ethical practices within their organisations and technological partners. 

For startups, it’s a call to embed ethical checks into every stage of product development. This doesn’t have to be complex — sometimes, it’s about simple, clear principles that everyone in the organisation understands and follows. 

Another misconception is that responsible innovation is a drag on profit. The truth is, responsible innovation can be a powerful differentiator. 

Responsible innovation isn’t merely a trend — it’s a prerequisite for sustainable growth. More than that, it can be a differentiator, setting brands apart in a market increasingly aware of ethical issues. 

By building a strong set of principles from the start, companies — whether startups or established enterprises — can create trust and credibility, two invaluable assets in today’s digital age. 

In a world where data breaches, privacy concerns, and ethical missteps can lead to costly PR disasters, building and marketing a product based on responsible innovation can set companies apart from their competition. Startups that are clear about their ethical guidelines are more likely to attract customers, corporate partners, and investors who value trustworthiness and transparency. 

The future of innovation doesn’t have to be a zero-sum game between progress and ethics. 

“Responsible innovation is not about slowing down; it’s about doing things right so that you can speed up sustainably,” said Lucio Ribeiro. 

Responsible innovation isn’t a constraint. It’s also not just about ticking a compliance box; it’s about creating a long-term competitive advantage. Whether you’re a startup founder or a corporate executive, responsible innovation is an opportunity to build better, smarter, and more human-centric technology. 

In the words of Dr. Kendra Vant: “The best innovations are those that understand the bigger picture; that consider not just what we’re building, but who we’re building it for. And that’s a takeaway we can all stand behind. As businesses navigate the evolving landscape of AI and tech, those who prioritise responsibility and ethics will lead the way, setting a new standard for what it means to innovate with integrity.” 

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