The trajectory of and rapidly advancing regulatory landscape around AI is reminiscent of privacy which, years ago, left companies scrambling to figure out what they needed to do, who is managing compliance, and what regulations they may be subject to, both existing and upcoming. As companies begin to navigate these uncharted waters, we’ve put together 4 questions every organization should be asking and answering to begin AI governance.

1.      Do Our Employees Use AI?

Understanding where AI is being utilized within an organization is crucial for several reasons. Firstly, it allows companies to ensure compliance with ever-evolving regulations and standards. As AI technology advances, so do the laws governing its use, particularly concerning data privacy and security. By having a clear map of AI deployments, companies can better monitor and manage compliance risks, ensuring that their AI systems adhere to relevant legal and ethical guidelines. This not only protects the organization from potential legal repercussions but also fosters trust with customers and stakeholders who are increasingly concerned about how their data is being used.

Moreover, identifying AI applications within the company can significantly enhance operational efficiency and strategic alignment. Knowing where AI is in use helps businesses optimize these technologies for better performance and integration with broader business goals. It ensures that AI initiatives are not operating in silos but are contributing to the company’s overarching objectives, whether that be enhancing customer experiences, driving innovation, or improving decision-making processes. Furthermore, this awareness enables companies to allocate resources more effectively, support employee training and development in AI competencies, and address any potential impacts on the workforce. In essence, a clear understanding of AI usage ensures that the technology is being leveraged to its full potential while aligning with the company’s mission and values.

2.      Do We Have an Internal AI Usage Policy?

Companies need an internal AI usage policy to ensure that the deployment and development of AI technologies are conducted ethically, responsibly, and in alignment with corporate values and regulatory requirements. An internal policy provides a clear framework for how AI should be used, detailing guidelines on data privacy, security, transparency, and accountability. It helps prevent misuse of AI, protects sensitive information, and ensures that AI applications do not inadvertently perpetuate biases or discriminatory practices. Additionally, a well-defined AI usage policy fosters consistency across the organization, enabling all departments to adhere to the same standards and practices. This not only mitigates risks but also promotes trust among employees, customers, and stakeholders, demonstrating a commitment to ethical AI practices and corporate responsibility.

What should your internal AI usage policy include? Here’s a list of things to consider when building your policy:

• Define the scope and objectives of the policy, considering factors such as data privacy, algorithmic transparency, and ethical considerations.
• Engage relevant stakeholders, including legal experts, data scientists, and business leaders, to establish clear guidelines and procedures for AI development, deployment, and governance.
• Regularly review and update the policy to adapt to evolving technologies, regulatory requirements, and ethical norms, ensuring that AI initiatives align with organizational values and comply with legal and ethical standards.

3.      Are We Protecting PI?

Protecting consumer information when using AI is crucial for maintaining trust, complying with regulations, and safeguarding sensitive data from potential misuse or breaches. AI systems often rely on vast amounts of personal data to function effectively, making it imperative to ensure that this data is handled with the highest standards of privacy and security. Failure to protect consumer information can lead to severe consequences, including data breaches, identity theft, and significant reputational damage for the company. Moreover, adhering to privacy laws such as GDPR, CCPA, and others is not just a legal obligation but also a moral one, reinforcing the importance of protecting consumer rights and fostering a trustworthy relationship with customers.

Furthermore, protecting consumer information is essential to avoid biases and unfair treatment in AI applications. Sensitive data, if mishandled, can lead to discriminatory outcomes, affecting individuals’ access to services and opportunities. By implementing robust data protection measures, companies can ensure that their AI systems are fair, transparent, and ethical, thereby enhancing the overall quality and reliability of their AI solutions. This commitment to protecting consumer information not only helps in building a positive brand image but also drives long-term business success by fostering customer loyalty and satisfaction.

4.      Who’s Responsible for Our AI Governance?

An AI governance board is essential for ensuring the responsible development, deployment, and management of AI technologies within an organization. As AI systems become increasingly integral to business operations, having a dedicated governance board helps to establish clear policies, ethical guidelines, and oversight mechanisms that align with the company’s values and regulatory requirements. This board can address critical issues such as data privacy, algorithmic transparency, bias mitigation, and the ethical implications of AI decisions. By providing strategic direction and oversight, an AI governance board ensures that AI initiatives are not only effective but also ethical and legally compliant, thereby protecting the organization’s reputation and fostering public trust.

The AI governance board should comprise a diverse group of stakeholders who bring a range of perspectives and expertise to the table. This includes senior executives, legal and compliance experts, data scientists, ethicists, and representatives from various business units that use AI. Additionally, it is beneficial to include external advisors or academics specializing in AI ethics and technology policy. This diverse composition ensures that the board can comprehensively address the multifaceted challenges of AI governance, balancing technical feasibility with ethical considerations and regulatory compliance. By involving a wide array of voices, the governance board can create a robust framework for managing AI risks and opportunities, ultimately guiding the organization toward responsible and innovative AI practices.

Getting the AI Governance Ball Rolling

Here at Truyo, we saw the need for AI governance planning assistance. We developed the 5 Steps to Defensible AI Governance Workshop to help organizations begin the journey of building an AI governance strategy. Our experts will walk you through the legislative landscape, selecting an AI Governance Board, finding AI usage, assessing and remediating AI risks, and more. To request a workshop for your organization, click here or reach out to hello@truyo.com.

If you’re interested in learning more about our tool that will help you locate shadow AI usage, de-identify PI, and assess AI risk, reach out to hello@truyo.com or visit our AI Governance Platform page.