- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Neil Hodge2024-11-21T16:25:00
Data governance has become a key concern for companies, especially when the EU AI Act and General Data Protection Regulation (GDPR) have put a premium on handling data responsibly and ensuring that artificial intelligence does not cause harm.
Both pieces of legislation spell out what companies need to do to comply with responsible AI use–but not necessarily how to do it. And while some activities may be deemed “high risk,” they are not banned.
Cross-border legislation, the potential for regulatory cross-over, and differences in enforcement approaches both inside and outside the EU also pose concerns about how “safe” or “risky” companies can be with their use of data and AI, while a lack of case law is an incentive for more aggressive companies to dive in.
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Any product that uses AI needs to be safety assessed for its entire lifespan under new rules that went into effect recently across the EU. Experts warned companies using AI to tailor products could be classed as “manufacturers” and face the same duty of care as developed.
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.
For all the hype surrounding generative artificial intelligence, the technology has been met with a healthy skepticism in the compliance community. Compliance practitioners want to know: Is it safe? Can it be deployed ethically? Are the risks greater than the rewards? And what should an AI acceptable use policy contain?
Companies are increasingly putting their faith in AI to realize the kind of business benefits that the technology seems to promise, but they are also opening themselves up to new and potentially crippling sanctions if they are unable to answer questions that surround how AI operates.
Artificial intelligence is rapidly transforming the business landscape, and this is especially true for anyone working in compliance. But while AI offers immense potential to streamline processes, enhance decision-making, and mitigate risks, it also introduces a new set of challenges that compliance professionals must navigate.
