AI Compliance: What It Is and Why You Should Care

As Artificial Intelligence (AI) continues to become more prevalent in the workplace – from recruiting to software development to marketing –?organizations are increasingly looking for ways to ensure that their AI systems comply with relevant regulations and standards. The field of AI compliance is complex and ever-changing, and staying up to date with the latest developments is essential for any organization that uses artificial intelligence. As a professional – whether you are a manager, developer, security specialist, or simply an AI enthusiast – it is crucial to know what the challenges are in this field and how you can tackle them to?save your company money?and yourself many headaches.

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What is AI compliance?

AI compliance?is a process that involves making sure that?AI-powered systems are compliant with all applicable laws and regulations.

·?????? It includes checking that companies and individuals do not use AI-powered systems to?break any laws or regulations.

·?????? It ensures that the?data?used to train AI systems is?collected and used?legally and ethically.

·?????? AI compliance guarantees that AI-powered systems are?not used to discriminate?against any particular group or individual and are not used to manipulate or deceive people in any way.

·?????? It involves verifying that nobody uses?AI-powered systems to?invade individuals’ privacy?or cause any harm to them.

·?????? Finally, AI compliance also assures that AI-powered systems are employed responsibly and in a?way that benefits society.

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Why is AI Compliance Important??

AI compliance is essential for various reasons: first, it ensures that organizations use AI legally and ethically. Somebody can use AI-powered systems to make decisions that significantly impact individuals. Organizations must ensure that these decisions comply with applicable laws and regulations. Second,?AI compliance helps to protect organizations from potential legal and financial risks. Suppose authorities find an AI-powered system to be non-compliant.?In that case,?organizations may be subject to fines, penalties, or other legal action. Finally, AI compliance helps to protect the privacy and security of individuals. AI-powered systems can collect and process large amounts of personal data. Organizations must ensure that this data is collected and used legally and ethically, or?they may face hefty fines.

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AI has not always been compliant – some examples from the past

Artificial Intelligence has been at the center of discussions about potential bias in its functioning since the first decade of 2000. There are many examples in which artificial intelligence poses an ethical and security threat, such as:

·?????? AI-based hiring tools.?In 2018,?Amazon removed a covert AI hiring tool that displayed bias against women.?The machine learning model’s tendencies caused most ideal candidates to be created as men, reflecting the predominance of men in the computer industry.

·?????? Deepfakes.?According to Dr. Tim Stevens (Cyber Security Research Group at King’s College London),?the use of deepfakes?(synthetic media in which the likeness of a different person replaces another in an existing image or video) poses?a severe threat to national security?since autocracies might make use of them to undermine public confidence in those institutions and organizations.

·?????? AI-powered photo editing and data protection.?There have been different examples of dubious handling of data related to apps that use AI to enhance or transform real pictures, such as a Facebook app that leaked data to a Russian company in 2022. Another worrying example was a popular app (FaceApp) which showed a very oddly written privacy policy, stating that any photographs shared by users are effectively the property of FaceApp.

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So far, the legislation behind these cases has been relatively loose, with relative fines and enforcement. However, as laid out below,?things are rapidly changing – and it’s better to be prepared.

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High fines for those who fail to comply – the Artificial Intelligence Act (AI Act)

Not being able to use AI in a way that is fully compliant with the applicable law may result in high fines and penalties. 2023 is going to be a year central for AI regulation, given the rapid developments in the field and given the role the EU is playing in heavily discussing the Artificial Intelligence Act (AI Act, first presented on April 21, 2021) – a regulation to establish a uniform regulatory and legal framework for artificial intelligence. Its reach includes all industries (aside from the military) and all varieties of artificial intelligence. On?December 6, 2022, the European Council approved its compromised overarching stance on the AI Act. Such regulation has the potential to become a universal norm, much like the General Data Protection Regulation (GDPR) of the European Union. In September 2021, Brazil’s Congress enacted a bill that establishes a legal framework for artificial intelligence, demonstrating that it already impacts outside of Europe.

Fines under the EU AI Act will rank as high as:

·?????? 30 million Euro or 6% of annual worldwide turnover?(whichever is higher) – in case of the use of a prohibited AI system according to Art. 5 AI Act or if the company does not meet the quality criteria for high-risk AI systems set out in Art. 10.

·?????? 20 million Euro or 4% of annual worldwide turnover?(whichever is higher) – if the establishment and documentation of a risk management system, technical documentation, and standards for high-risk AI systems concerning the accuracy, robustness, and cybersecurity (Article 9) do not meet the criteria.

·?????? 10 million Euro or 2% of annual worldwide turnover?(whichever is higher) – if the competent authorities receive inaccurate, insufficient, or deceptive information in answer to their request for information.

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How do you ensure AI compliance?

To ensure full AI compliance, organizations should take into account the following best practices:

1. Establish clear policies and procedures for AI use.
2. Develop a comprehensive compliance program.
3. Monitor AI systems for compliance with applicable laws and regulations.
4. Create an AI governance framework.
5. Ensure data privacy and security.
6. Establish an audit process for AI systems.
7. Develop a process for reporting and responding to compliance issues.
8. Implement a risk management program.
9. Train personnel on AI compliance requirements.
10. Utilize automated tools to monitor AI compliance.

This list might look easy if you’re an AI and data protection expert. But what if you’re not? What if you need to learn how to establish clear policies and procedures – and develop a comprehensive compliance program?

A straightforward way to prepare for AI compliance is to?obtain an AI and Data Protection certification from an internationally recognized organization. Together, these certifications cover many topics – including data privacy and security- and help develop a full grasp of artificial intelligence’s nuances and relative regulatory standards. They help professionals and the organizations they work for understand the implications of using AI in various operations and ensure that their systems comply with relevant regulations and standards.

Curious to know how to get one? Please reach out to me.