- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-10-31T14:43:00
While companies are exploring and building artificial intelligence (AI) technology, lawmakers and regulators are trying to identify what ground rules they need to set. These guardrails are what companies and governments alike believe are essential parts of ensuring safe and responsible use of the technology.
Much of the debate about AI lately has been focused on virtual assistants, which are often powered by a technology called generative AI (GenAI). GenAI, as it’s known, has the ability to create new content like text, art, and simulations based on user prompts, often entered in a chat box.
Companies are testing its effectiveness ranging from banking and financial services to pharmaceuticals, retail, and manufacturing. Early adopters shared stories of how AI could smooth workflows, reduce manual processes, summarize documents, and find new patterns in data. But, they also increasingly recognize the risks.
At Compliance Week’s inaugural AI & Compliance Summit, held at Boston University earlier this month under Chatham House Rule, compliance experts discussed key focus areas of GenAI compliance risks, ranging from data protection and privacy to algorithmic bias and fairness.
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Companies are adopting artificial intelligence tools at a breakneck pace, but it’s increasingly clear that they set guardrails early. AI leaders say that approaching the technology with safety and ethics in mind will help ensure its upside benefits, while avoiding the significant risks it poses as well.
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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?
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.
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.
