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UAE: Frustrated by AI that hallucinates? The problem is bad data, says expert
A global bank which used data or a model to give out loans was favouring men in a certain age bracket with a certain income, she revealed in an example
- PUBLISHED: Wed 28 May 2025, 11:19 AM
Clean and structured data is critical when using or deploying artificial intelligence for tangible impact on the companies, Shereen Chalak, CFO of Microsoft said on Wednesday.
“We have a lot of data, and you need to make sure that data is clean and well structured. Now more than ever, it's true that data is the new currency and the new oil. All the things that we've been hearing about data for the past few years, the model will hallucinate on bad data. AI will not work if your data is not clean and structured and well-governed if you want tangible impact on your organisation and your processes,” she said while delivering a keynote address at the New Age Finance and Accounting Summit.
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Organised by Khaleej Times, the one-day summit was attended by hundreds of top industry executives. Many top officials from the financial industry discussed optical issues that the industry is experiencing especially related to AI, corporate taxes, e-invoicing and others.
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Charles Yardley, CEO of Khaleej Times, also delivered a welcome note at the opening of the summit.
Shereen stressed maintaining the data security and culture of the companies among other aspects related to the finance industry.
“AI is young. We're still learning and innovating. They are the recipe to set you up for success when it comes to leading in the era of AI. Number one and most important — and most overlooked — is a right culture that enables everyone to thrive,” she said, asking companies to upskill their employees and reward employees who are using AI and brave enough to come up with ideas and try to innovate and reinvent certain processes.
Microsoft’s chief financial officer noted that security, compliance and governance framework are supercritical.
“This is not your task alone. It's a joint effort between finance, legal and the entire leadership team,” Shereen told the attendees during the conference.
Sharing her insights with the industry peers when creating their own internal AI models, she advised companies to ensure the responsible use of AI, create transparency around how the model works, how the algorithm works and where the data is sourced from so that there are no biases.
Citing an example of how wrong data could lead to misleading decision-making, she revealed that a global bank which used data or a model to give out loans was favouring men in a certain age bracket with a certain income.
“As you go on your AI journeys, you need to stay curious, open to innovating and try new things while maintaining trust and integrity and adherence to compliance. At the core of all of this which will set you apart in this new age of AI, while others will be grounded with the fear of becoming obsolete, you will be living the joy of being relevant,” Shereen added.
While delivering the welcome note at the summit, Charles said the world is witnessing rapid transformation, and finance is not just about numbers, but about strategy, innovation and leadership.
“This summit is an opportunity in a shared space to meet your peers and colleagues and explore what the next chapter is in the ongoing transformation. In Dubai, a city known for its vision and resilience, we face a rapidly evolving financial landscape that is shaped by AI, automation, technology, regulations and new business models. It is clear today that finance is not just about managing change, it is about leading it,” he said.
