An Accountability Model for AI

AI washing

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

AI

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

AI

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

AI

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

AI

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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Another Way of Looking at AI Risk

AI

Today we return to artificial intelligence, since these days compliance officers need all the good advice they can get on the subject. The New York City Bar Association recently published a paper on how AI might help with anti-money laundering compliance, and along the way raised several issues about AI that every compliance officer should…

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SEC Launches ‘AI Washing’ Enforcement

AI washing

The Securities and Exchange Commission sanctioned two investment firms Monday for making false statements about how they use artificial intelligence in their business operations — the first enforcement actions we’ve seen under a crackdown on “AI washing” that SEC officials had been promising for several weeks.  The two firms are Global Predictions Inc., an investment…

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Justice Department Eyes AI Risks

AI

Last week the Justice Department announced that it will cast a more critical eye at abuses of artificial intelligence. Today let’s unpack what that news means for compliance officers in practice, and how you might need to adjust your compliance program to accommodate this brave new AI world. The pledge about increased scrutiny of AI…

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ChatBots, Compliance, and Risk

AI

Today I want to return to everyone’s favorite technology of the moment, artificial intelligence. To what extent could compliance officers incorporate AI chatbots into their Code of Conduct or internal reporting hotlines?  This has been on my mind lately because Air Canada recently gave us a fascinating example of the consequences of AI gone wrong.…

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Advice on AI Policies, Procedures

AI

Today we return to artificial intelligence, with a look at the policies and procedures companies could use to govern the use of AI. State financial regulators in New York recently proposed guidance for AI in the insurance sector which goes into detail about policies and procedures — so let’s see what might be useful for…

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