Talking AI and ‘Model Risk’

model risk

Today we have a heads up for all you compliance officers in the financial services sector: Radical Compliance and Forensic Risk Alliance will be hosting a webinar on Jan. 29 exploring the risks of artificial intelligence, and the new governance and risk management methods you’ll need to develop to keep those AI risks in check.…

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FTC Strikes Again on AI Controls

AI

The Federal Trade Commission has dinged a California business for making misleading statements about the accuracy of facial-recognition technology that the company sells — yet another enforcement action over artificial intelligence that offers numerous lessons for corporate compliance and audit professionals. The company in question is IntelliVision Technologies, a subsidiary of Nice North America, which…

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A Telling Move by CFPB

cfpb

Compliance officers who want to skate where the puck is going to be, cast your eyes to the Consumer Financial Protection Bureau. Last week the agency warned companies to tread carefully when using artificial intelligence and other digital tracking to make employment decisions, and in doing so dropped two telling hints about the future of…

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Justice Dept. Talks AI Concerns

model risk

The Justice Department wants companies tinkering with artificial intelligence to be more open-minded about testing their AI systems and products for vulnerabilities, and specifically wants them to adopt a “vulnerability disclosure program” much the same way tech companies already disclose software bugs. So says Nicole Argentieri, head of the Criminal Division, who delivered a speech…

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Repository of AI Risks Available

model risk

Some red meat today for everyone panicking about the risks (compliance or otherwise) of artificial intelligence: the brains at MIT have published a catalog of more than 700 potential risks from organizations’ use of AI, which you can use as food to fuel your AI risk management program. A team of MIT researchers known as…

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An Accountability Model for AI

AI

Who’s looking for another thoughtful speech about the compliance implications of artificial intelligence? Because we have one from a top banking regulator in the United States, who raises deep issues about AI that go well beyond the banking sector. The speech comes from Michael Hsu, head of the Office of the Comptroller of the Currency,…

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New Help for AI Risk Analysis

model risk

We can never get enough help assessing the risks of artificial intelligence these days, so today let’s call out a new effort from the National Institute of Standards and Technology that internal auditors, IT auditors, and cybersecurity risk professionals might find useful.  NIST launched a pilot program last week called ARIA (Assessing the Risks and…

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Stating Your Ethical AI Principles

model risk

Today we have another chapter in our ongoing series about artificial intelligence, and how companies can take a more compliance-aware approach to integrating AI into their operations. This time around I want to look at what the companies themselves are disclosing to the public. The idea came to me as I was researching my previous…

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What Boards Are Saying About AI

model risk

Today I want to start an occasional series about artificial intelligence, and how businesses can take a more risk- and compliance-aware approach to integrating AI into their operations. We might as well start that exploration at the top: What are boards saying about how they oversee the adoption of artificial intelligence? Not much, apparently. At…

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SEC Talks AI Enforcement Risk

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We have more advice this week on artificial intelligence, this time from a top voice at the Securities and Exchange Commission who urged companies to do better at crafting — and implementing — thoughtful policies to govern AI risks. The speech came from Gurbir Grewal, head of the SEC’s Enforcement Division. He gave a speech…

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