- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Neil Hodge2022-10-17T15:18:00
Technology has played a major part in helping companies improve performance and boost productivity, and artificial intelligence (AI) looks set to find even greater efficiencies—though perhaps at a higher human cost.
There have long been concerns about the impact AI-based systems can have in the workplace. In recent years, companies have run afoul of regulators by using AI tools for monitoring performance to the point of surveillance.
In 2021, food delivery companies Deliveroo and Foodinho were each fined by Italy’s data protection authority because their apps’ algorithmic rating systems—which used mathematical formulas to prioritize or penalize riders depending on how many jobs they accepted, fulfilled, completed on time, or rejected—were allegedly biased and violated the European Union’s General Data Protection Regulation (GDPR) principles around transparency and lawfulness of processing.
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The era of artificial intelligence adoption is testing the old ways of doing compliance, underscoring the need for continuous monitoring. Compliance isn’t a one-and-done activity, but sometimes organizational incentives and goals fail to prioritize the importance of this.
Officials at four U.S. agencies warned they are prepared to act against bias or discrimination that involves artificial intelligence.
The Consumer Financial Protection Bureau and National Labor Relations Board pledged to share information regarding instances of improper employer use of surveillance tools and the sale of employees’ personal information.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued an alert to financial institutions about their obligations to report deepfakes, warning artificial intelligence has given bad actors additional tools in their arsenal.
A nationwide rental outlet affiliated with Rent-a-Center and its chief executive have been sued by the Consumer Financial Protection Bureau for allegedly deceiving five million consumers about the terms of credit agreements.
A lack of risk visibility is causing companies to reject customers–and potentially lose money–over fears they might be in danger of violating rules around anti-money laundering and sanctions regulations.
