Posts Tagged ‘artificial intelligence’
Another Way of Looking at AI Risk
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…
Read MoreSEC Launches ‘AI Washing’ Enforcement
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…
Read MoreJustice Department Eyes AI Risks
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…
Read MoreChatBots, Compliance, and Risk
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.…
Read MoreAdvice on AI Policies, Procedures
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…
Read MoreFTC Hits Rite Aid on AI Usage
The Federal Trade Commission has ordered Rite Aid not to use an AI-driven facial recognition system to identify potential shoplifters, in the latest and most vivid example yet of regulators cracking down on how companies might put artificial intelligence to use. The settlement was announced on Tuesday. According to the FTC, Rite Aid deployed AI-based…
Read MoreFresh Thoughts on AI and Compliance
A few weeks ago I had the privilege of moderating (yet another) webinar on artificial intelligence and its implications for corporate compliance functions. The discussion was excellent, and as usual I took lots of notes. For all you AI aficionados out there who missed it, I’ve recapped some of the best insights below. First, one…
Read MoreIs AI Leaving Your Internal Controls Behind?
So everyone is freaking about artificial intelligence and its rapid deployment throughout the corporate enterprise. That brings up an important question: are companies updating their internal controls fast enough to keep pace with that AI adoption? This is on my mind because the other week Deloitte released the results of a survey that suggests no,…
Read MoreUsing GRC Frameworks for New Tech
Today we have another dispatch from this week’s ISACA-Institute of Internal Auditors GRC Conference, on a subject that gives compliance and audit professionals plenty of heartburn: emerging technologies. How can you apply GRC frameworks to assure that as those technologies spread through your enterprise, they don’t cause unnecessary risk? That was the question for a…
Read MoreIt’s here! An AI Enforcement Action!
Well, we have our first-ever enforcement action over bias from an artificial intelligence system: an age discrimination complaint from the Equal Employment Opportunity Commission that seems rather boring and obvious, but still offers compliance officers a glimpse into what AI enforcement might look like in the future. The company in question is iTutor Group, a…
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