Extract from Morgan Maiorino and Jacqueline Pluta’s article “Why You Should Care About AI Governance”
Imagine this scenario: A financial institution adopted AI to automate credit decisions, but due to an inadequate governance framework, the system denied loans based on incomplete or biased data. When regulators and customers raised concerns, the company faced both legal penalties and public criticism, while more prepared competitors capitalized on the situation. This illustrates the critical importance of anticipating regulatory developments and managing AI with a framework that ensures legal compliance, transparency, and fairness—protecting not only your business but also your competitive position.
Even though AI compliance is a moving target, we have helped clients assess their risk and establish a framework that will adapt and manage risk over time. We break it down into the following three areas: legal, ethical, and competitive.
Legal: The regulatory landscape of AI is rapidly evolving but is still being outpaced by AI innovation. Therefore, it is not only important to care about current applicable legislation but to anticipate legal developments in order to ensure an efficient compliance environment at your organization.
