- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Neil Hodge2023-10-20T14:14:00
Companies need to be aware of the legal risks and liabilities associated with their use of artificial intelligence (AI)-based technologies, as technology firms are not the only ones in regulators’ sights.
“Using AI can be like having an intern with a drinking problem,” said Justin Garten, a lecturer and AI consultant specializing in large language models, during a session at Compliance Week’s Europe conference in London on Tuesday. “At first, they look as if they know what they’re talking about, and then you slowly realize they don’t.
“AI tosses all our processes up in the air, and we don’t know how or where they’ll land. Be careful about the types of AI tools you are using and the purpose you’re using them for.”
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec. Select an option and click continue.
Annual Membership $499 Value offer
Full price one year membership with auto-renewal.
Membership $599
One-year only, no auto-renewal.
Insurers embracing artificial intelligence-based technologies might pose serious risks to companies buying insurance if the risk data used to price their insurance premiums is used to train AI algorithms or shared on commonly used chatbots like ChatGPT.
The Securities and Exchange Commission has not yet implemented rules governing use of artificial intelligence but still expects regulated entities to adhere to commonly accepted practices, including disclosure, said an agency enforcement official.
Companies that design powerful artificial intelligence systems must perform safety tests on the programs and share results with the U.S. government under a sweeping executive order intended to make AI safe while furthering robust innovation.
When the DOJ released its revised Evaluation of Corporate Compliance Programs, it turned some heads. Tucked into a section on risk assessments was a strongly worded series of questions that appeared to shoulder compliance teams with the responsibility for ensuring the safe use of AI tools by their firms.
The Department of Justice’s Evaluation of Corporate Compliance Programs has made the importance of artificial intelligence governance frameworks clear, but it didn’t say what role compliance should play. Here’s the answer.
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.
