AI Governance Essentials: Empowering Procurement Teams to Navigate AI Risk
Nov 7, 2024
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Dr. Cari Miller, an expert in AI governance and procurement, shares her insights from the AI Procurement Lab and ForHumanity. She discusses essential frameworks for mitigating AI acquisition risks, highlighting the OMB Memo M-24-18's role in guiding government AI procurements. The conversation emphasizes the importance of cross-functional collaboration and AI literacy in organizations. Dr. Miller also addresses the need for trained procurement professionals to navigate AI risks effectively, ensuring responsible and accountable AI deployment.
The podcast emphasizes the necessity of a structured AI procurement risk management framework to identify and mitigate risks effectively.
Dr. Miller highlights the critical role of AI literacy across departments to navigate the complexities of responsible AI procurement and deployment.
Deep dives
Focus on AI Governance and Procurement Practices
The discussion emphasizes the critical role of governance in AI procurement, with a specific focus on workplace technology throughout the employment lifecycle, from hiring to separation. An AI audit criteria catalog, developed over 18 months, highlights the importance of evaluating how technology impacts employee productivity and competence. By integrating procurement practices into the strategy, there is a strong push to avoid integrating flawed AI products into organizations, promoting the idea that audits and procurement should be foundational elements of any AI governance plan. The formation of a nonprofit organization, the AI Procurement Lab, signifies a collective effort to establish standards and enhance best practices in AI procurement.
The AI Procurement Risk Management Framework
A key feature of the conversation is the introduction of an AI procurement risk management framework designed to identify and mitigate risks associated with acquiring AI technology. The framework consists of five steps: establishing risk appetite, creating risk-aware solicitation requirements, performing thorough risk assessments, implementing risk controls, and conducting ongoing risk monitoring. A legitimate business need serves as a prerequisite to ensure that organizations adopt technology that addresses specific challenges rather than being swayed by vendor pitches. This structured approach encourages thoughtful engagement with vendors and a sharp focus on understanding unique risks associated with each acquisition, essentially making organizations better equipped to handle varying risk profiles.
Shared Responsibility in AI Systems Management
The podcast addresses the complexities of risk liability between AI vendors and users. It recognizes that while vendors are responsible for training and providing AI systems, buyers hold accountability in evaluating the systems while ensuring adherence to ethical standards. The importance of a collaborative approach is accentuated, advocating for an appeals process that addresses any incidents arising from AI decision-making. This triadic responsibility model aims to ensure that all stakeholders take ownership of outcomes, thereby fostering a culture of accountability within AI procurement.
Challenges and Opportunities in AI Literacy
Looking ahead, the dialogue underscores the paramount importance of AI literacy as both a challenge and an opportunity for organizations embarking on AI procurement initiatives. To effectively integrate AI, various departments, including procurement, IT, and legal, must develop a deep understanding of AI technology and its implications for their unique domains. The AI Procurement Lab aims to address this by advocating for targeted training for procurement professionals, enabling them to navigate the evolving AI landscape more effectively. Ultimately, enhancing domain-specific AI literacy is positioned as the key to successful AI integration and responsible use across organizations.
In this episode of the MLSecOps Podcast, Charlie McCarthy from Protect AI sits down with Dr. Cari Miller to discuss the evolving landscapes of AI procurement and governance. Dr. Miller shares insights from her work with the AI Procurement Lab and ForHumanity, delving into the essential frameworks and strategies needed to mitigate risks in AI acquisitions. They cover the AI Procurement Risk Management Framework, practical ways to ensure transparency and accountability, and how the September 2024 OMB Memo M-24-18 is guiding AI acquisition in government. Dr. Miller also emphasizes the importance of cross-functional collaboration and AI literacy to support responsible AI procurement and deployment in organizations of all types.
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