You’re probably hearing and reading a lot of information about artificial intelligence (AI) these days – and for good reason too. The advent of widely accessible natural language processing software, like ChatGPT, changed the game very quickly. Now, organizations, education institutions and any other person or company interacting with the internet has to think about AI and its implications.
We’ll be talking a lot about AI – how to govern its usage, what compliance regulations come about, and the positives and drawbacks of the many use cases for artificial intelligence. This post explores some of the use cases for AI in your compliance program and the advantages and drawbacks of incorporating AI into your business.
Unpacking AI
First, it is important to understand what AI is. Artificial intelligence is an umbrella term referring to the simulation of human intelligence by machines or software-coded computer systems. AI encompasses various functionalities, but discussions around AI in the workplace often narrow down to a limited perspective, frequently using ChatGPT as a generic label for AI. It’s important to note that not all AI operates on the internet, as private system applications are prevalent for harnessing AI capabilities.
Over the years, AI has rapidly been integrated into our daily routines. Its presence is evident in various applications, such as extensive language modeling that enables text and image generation. One common example is AI used for facial and image recognition capabilities which has been present for years. AI is employed in scanning documents or images according to predefined parameters, enhancing efficiency in data processing. Further, AI is instrumental in developing prediction and recommendation systems, contributing to personalized user experiences. Another notable contribution is automating repetitive tasks, streamlining workflows and increasing productivity. The multifaceted applications of AI underscore its transformative impact on diverse aspects of modern life.
What are the advantages and risks of using AI?
While there are many advantages to using AI, there are also several disadvantages. Potential drawbacks of utilizing AI include:
- AI-generated distortions or “hallucinations”
- Unintended malfunctions of AI algorithms
- Uncertain oversight of third-party AI utilization
- Accidental disclosure of confidential or sensitive data
- Issues related to copyright and plagiarism
On the positive side, some of the advantages of AI include:
- Enhanced efficiency
- Streamlining of repetitive tasks
- Improved precision in data analysis
- Predictive analytics capabilities
- Cost and time savings
Integrating AI capabilities into compliance programs
The seamless integration of AI into compliance programs significantly boosts efficiency and precision by automating routine tasks. An illustrative instance of this integration is NAVEX One’s COI Disclosures and RiskRate solutions, where machine translations operate within private systems, ensuring secure and rapid information conversion into the user’s chosen language. Additionally, sophisticated language models are employed in NAVEX’s Compliance Hub and Compliance Assistant to systematically search through internal policies, extracting and summarizing crucial information. AI also has the capability to discern patterns in data and pinpoint anomalies further enhances the effectiveness of compliance processes.
It is also important to note that a “private system" enables an AI tool to seamlessly connect with software for tasks such as search, analysis, translation and more. By using AI in private systems, organizations can safeguard sensitive information without compromising their ability to leverage AI. Robust company policies regarding usage and effective governance play a crucial role in this context.
How and where to start implementing AI
Due to its size and capabilities, implementing AI into the workplace can be a little daunting, leaving many unsure about where and how to begin.
To successfully incorporate artificial intelligence into your business, start by clearly outlining the intended applications and identifying the necessary technological prerequisites. Next, ensure a comprehensive evaluation of third-party risks associated with AI providers through rigorous assessments. In addition, collaborate closely with the chief information security officer (CISO) or chief information officer (CIO) to thoroughly identify, analyze and manage potential vendor risks. It is also vital to establish and reinforce robust policies and governance structures to guide the integration and usage of AI within your organization.
Finally, foster open communication with relevant users and provide clear guidance on the proper utilization of AI tools for optimal results. This strategic approach will help streamline the implementation of AI, promoting efficiency and mitigating potential risks.
The future of AI – what’s next?
The outlook for AI seems bright, as predictions suggest AI will become increasingly prevalent with technological progress, leading to significant changes in healthcare, banking, transportation and many other industries. The job market is anticipated to change as automation driven by AI becomes more ubiquitous, necessitating the development of new roles and skills. To make the most of the advancements in AI technology and tackle its challenges, companies can adopt a strategic approach.
In addition, new regulations are rapidly forming around AI. European legislators have made significant progress in defining the trajectory of artificial intelligence by striking a political agreement on extensive and ethical regulations for AI use. As outlined in the European Union’s (EU) Artificial Intelligence Act, this noteworthy advancement creates a global standard and sets benchmarks for organizations. In practice, the EU Act is the first comprehensive regulation addressing the risks of artificial intelligence through a set of obligations and requirements to safeguard the health, safety and fundamental rights of EU citizens and beyond.
The negotiated deal encompasses bans on specific AI applications, such as the untargeted scraping of images for facial recognition databases. The legislation also introduces rules for high-risk AI systems and emphasizes transparency for general-purpose AI systems and their underlying models.
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