A new compliance cottage industry surrounds artificial intelligence. We are at such an early stage of AI development, and companies are still figuring out how they can employ the technology. However, some industries, such as financial institutions, have been using AI for fraud detection and other issues. These early adopters will likely set the tone for AI compliance practices. There is no question that AI holds terrific promise. The hype surrounding AI is just that -- hype. Until there is more certainty surrounding AI technology, we will witness a lot of bloviating. But this aside, corporate boards, senior executives, and business developers need to pay attention until the dust settles. The AI industry is moving so fast that the sooner we start to focus, the nimbler our response will be.
Luckily, ethics and compliance principles are easily adaptable to AI risks. In this episode of Corruption, Crime, and Compliance, Michael Volkov discusses how the compliance profession is more than capable of building effective compliance programs around AI operations.
- Financial institutions have been using AI for fraud detection and other issues. They are at the forefront of developing compliance practices around AI.
- Companies need to embrace AI's promise and not get overwhelmed by all the hype. Corporate boards, senior executives, and business developers must pay attention until the dust settles.
- The AI industry is moving fast, and companies need to focus on what’s happening. Compliance has to be nimble and quick, just like the technology.
- Like every aspect of a business, any new technology presents risks, and AI certainly presents risks that need to be mitigated. This, in turn, leads to the necessary question: How should a company structure its AI risk and compliance program?
- AI can be a very productive tool. It can easily end up reducing costs and increasing efficiency. More efficient companies can help the economy expand and create new opportunities for growth.
- Financial institutions, tech companies, pharmaceutical, medical device and transportation logistics industries are likely to be significant users of AI technology.
- Generative AI use may increase the risk of fraud and will need to incorporate risk mitigation costs and capabilities.
- Compliance professionals have the intelligence, professional capabilities, and integrity to rise to the challenge of AI technology and onboard a third party.
Resources
Michael Volkov on LinkedIn | Twitter
The Volkov Law Group
