AI Regulation
11th April 2024
The use of AI has exploded in the last 12 months, with reports that 9 out of 10 leading businesses use some form of AI. Even small businesses are increasingly adopting the technology, it’s use being particularly helpful for data management and analysis. However, the technology has developed so fast that governments have been caught unprepared and now there is a global scramble to get up to speed.
The European Union is currently developing an Artificial Intelligence Act which is expected to set the global standard for legislation in this area. The law will assign AI use into three categories: That which creates unacceptable risk, that which leads to high-risk, and other uses which are largely left unregulated.
Whilst businesses will swiftly need to get on board with AI if they want to remain competitive and avoid being left behind, equally they will need to be cautious to ensure that decisions today will not adversely affect future operations, by falling foul of emerging legislation.
Just like other areas requiring regulatory compliance, there is likely to be a cost consideration. For small and medium-sized organisations, using external expertise for compliance services might be a more economical option than setting up internal resources. Outsourcing not only reduces the necessity for specialized knowledge in-house but ensures the application of AI in a manner that's understandable and accountable, a key aspect during regulatory examinations. There are some basic preparations, however, that all businesses can and should take to ensure good practice and reduce risk exposure:
1. Stay Informed of Developments
Regularly monitor updates on AI regulation via GOV.UK, legal and regulatory bodies, relevant industry news sources, attend conferences and webinars, etc.
Be aware of AI advances via industry forums/periodicals, engage with peers, subscribe to newsletters, etc.
2. Staff Training
Provide training for employees on ethical AI use, data protection laws, and the potential impacts of AI technology
3. Develop an AI Ethics Framework
Consider assigning a person/working group responsible for monitoring regulation developments and establishing/implementing AI guidelines
Develop, document, and maintain policies, procedures and decision-making processes
Monitoring and audit AI systems to ensure they operate as intended and comply with regulatory and ethical standards
Communicate with customers, users, and the public about how AI is used in your products or services
Establish clear lines of accountability and ensure there are mechanisms for recourse and redress for individuals affected by decisions made by AI
Like it or not, sticking your head in the sand is simply not an option, embracing the future, with all its implications, is really the only way forward.
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