Posts Tagged ‘artificial intelligence’
New Rankings on AI Models, Compliance Work
New research released this week shows that just about all artificial intelligence models are now quite good at handling just about all the tasks that compliance teams need done on daily basis — but, as usual with AI, that conclusion raises new questions for compliance officers even as it answers old ones. Let’s start with…
Read MoreFed Official Talks AI, Says Little
The head of banking supervision at the Federal Reserve gave a speech Friday about artificial intelligence in the banking sector, with lots of talk on on the importance of allowing AI innovation and not much on the regulatory oversight and risk management practices that might help banks to avoid AI risks. Audit, compliance, and risk…
Read MoreMore on Vendor AI Risks
A compliance officer called me the other day to get my opinion on a question. If one of your technology vendors upgrades its systems to introduce artificial intelligence capabilities, and your employees immediately start using that AI-enhanced application with abandon, would that count as a violation of some policy against shadow AI that you might…
Read MoreNotes on AI and Vendor Risk
Third-party risk is never far from the chief compliance officer’s mind, so today let’s review a recent report on third-party risk management programs that spotlighted a few emerging issues — mostly around artificial intelligence, naturally — that are driving compliance officers up the wall. The report comes from Ncontracts, a firm that sells third-party risk…
Read MoreMcKinsey’s Near-Miss AI Breach
Here’s a cybersecurity fiasco for our AI-drenched times: consulting firm McKinsey recently scrambled to fix security flaws in its in-house AI system that were discovered by a lone cybersecurity sleuth, who gained access to millions of internal messages and confidential client files. The Financial Times reported the story on Thursday, and everything about this tale…
Read MoreReport: AI Driving Fraud, Anti-Fraud Hiring
Who says artificial intelligence is erasing all the jobs for compliance and internal audit professionals? Not the anti-fraud crowd, apparently! A survey of more than 1,000 anti-fraud leaders finds the vast majority of them plan to increase their use of AI and their human staffing, mostly because AI is revealing just how much fraud they…
Read MoreThe Question That Block’s Layoffs Poses
If you’re one of the many white-collar workers quietly freaking out over the possibility that artificial intelligence will wipe out your career, then like me, you probably saw the news yesterday that payments company Block is cutting its workforce by 40 percent — thanks to the power of AI, according to chief executive Jack Dorsey.…
Read MoreCOSO Guidance on Generative AI Risks!
COSO has released new guidance on how businesses can manage the risks of generative artificial intelligence, warning that generative AI is moving into corporate organizations “far faster than traditional governance models anticipated” and bringing a host of new risks that need attention sooner rather than later. The guidance, 30 pages of how to fit COSO’s…
Read MoreThe Many Risks of Mandating Employee AI Usage
Here’s a thorny question quickly bubbling into existence at the intersection of HR, risk management, corporate ethics, regulatory compliance, and technology. To what extent should a company require its employees to use artificial intelligence as part of their jobs? This is on my mind because numerous stories have streaked across the headlines lately of companies…
Read MoreRFK Jr. and an Insidious AI Risk
We have not yet had occasion on this blog to discuss Robert Kennedy Jr. and his job running the Department of Health and Human Services; but alas, our luck has run out. Kennedy just unveiled plans for a new artificial intelligence tool at HHS, and we have important lessons here about AI and the risks…
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