Achieve AI Compliance in line with the AI Act and GDPR

The answer to this question depends on where you are in the world. AI compliance is governed by a variety of regulations, across different global jurisdictions. Here are some key regulations that have emerged or are emerging currently:

EU Artificial Intelligence Act (EU AI Act) sets rules for the use of AI in the European Union. It takes a “risk-based” approach, classifying and regulating systems based on their risk levels.

Algorithmic Accountability Act (AAA) is a proposed US bill that aims to address the potential risks associated with automated decision systems (ADS) and their impact on individuals and communities.

In addition to these specific AI laws, existing laws related to data privacy, cybersecurity, and employment also apply to AI systems. The General Data Protection Regulation in the European Union is an example of such a law that regulates ‘automated decision-making’.

Companies ensure AI compliance through several key practices, such as establishing clear policies and procedures, developing a comprehensive compliance program, creating an AI governance framework, ensuring data privacy and security, and establishing an audit process.

AI compliance encompasses several key areas. Organizations should handle AI compliance in a systemic way to allow for a consistent compliance approach across the organization. They should also proactively monitor the development and revision of relevant AI legislation. When an organization is subject to several AI laws, it is often difficult to narrow down the full set of AI regulatory requirements that should be addressed in a specific context.

In this scenario, organizations need to conduct thorough risk assessments and implement strategies to mitigate any potential risk to the company. Using high-quality datasets to train AI systems is crucial to minimizing risk. Keeping a record of AI activities across the organisation also helps to ensure transparency and accountability.

Additionally, employees should be provided with clear and understandable information about the AI system they need to use to carry out their job. Human oversight is also necessary to guarantee that AI systems operate as intended in the organisation and that there is someone there to intervene when necessary to avoid error or biases that could cause harm to employees and customers.

At all times, the organisation should essentially strive to ensure AI systems are robust, secure, and accurate in their operations.

Non-compliance can have several serious consequences for an organisation such as hefty fines and legal action, as well as serious reputational damage, which can lead to a reduction of customer trust that is usually difficult to earn back.

In addition, non-compliance can result in security breaches, data loss, or cyber-attacks, these in turn can compromise the confidentiality, integrity, and availability of critical business information.