IDC Names Securiti a Worldwide Leader in Data PrivacyView
Artificial intelligence (AI) has emerged as a revolutionary force in our rapidly evolving technological landscape, transforming industries, automating procedures, and how we connect with others. Although AI has great potential, it also has serious ethical, legal, societal, and organizational implications. The need for a strong and thorough AI governance framework is developing as AI systems are integrated more deeply into our daily lives. The absence of AI governance raises the risk of privacy violation, biased algorithms, and misuse of AI for malicious purposes. Building a robust AI governance framework ensures transparency, accountability, and the responsible development and deployment of AI systems. McKinsey & Company estimates that just Generative AI (a subset of AI models - i.e., applications such as ChatGPT, GitHub Copilot, Stable Diffusion, and others) could add the equivalent of $2.6 trillion to $4.4 trillion annually to business revenues with more than 75% of value arising from embedding Generative AI for the purposes of customer operations, marketing and sales, software engineering, and R&D. To ensure that AI technologies are harnessed for enhanced productivity while limiting potential risks and hazards, this framework will serve as a guide for navigating the challenging terrain of AI development, deployment, and regulation.
A structured set of regulations, policies, standards, and best practices intended to regulate and govern AI technologies' development, application, and use. It serves as a guide to ensure AI systems are developed and utilized ethically, responsibly, and in accordance with legal standards.
A robust AI governance framework comprises several crucial components that collectively ensure the AI's ethical and responsible use. These include:
Universal principles and values defining the ethical standards that AI systems should meet, including fairness, transparency, accountability, and privacy.
Ensure data privacy and security and obtain consent when collecting, storing, retaining, and sharing data.
Be transparent about the AI model's purpose, data collection, and processing activities.
Establish guidelines that demonstrate accountability and liability for the actions made by AI developers and AI systems.
Establish strategies to identify and mitigate biases in AI systems to prevent discrimination and unfair outcomes.
Ensure compliance with data protection laws and AI laws to avoid non-compliance penalties.
Establish mechanisms to continuously monitor AI systems' performance and impact and conduct risk assessments to ensure all vulnerabilities are patched.
Several crucial factors need to be considered while building an AI governance framework. These include:
As the global landscape jumps on the AI bandwagon, the dire risks and threats posed by the unregulated growth of AI are also coming to light. If not developed and deployed cautiously, the very properties that make AI systems and models fascinating technological advancements also make them potentially the riskiest technology. The ability of AI models to identify patterns, forecast actions, and derive insights from enormous amounts of data has demonstrated several vulnerabilities that, if exploited, can result in:
The risks posed by the rapid advancement of AI systems and models have become so pronounced that, in an unprecedented move in March 2023, 30,000 individuals, including some of the world's leading technologists and technology business leaders, signed a letter urging global governments and regulators to intervene unless AI developers agreed to voluntarily halt or slow down the development of AI technology for a period of six months.
With the proliferation of AI, regulators worldwide are moving fast to develop regulatory controls to ensure privacy and other related risks posed by these AI models and systems are identified, mitigated, and regulated before any significant type of harm is caused. Understanding the importance of AI regulation is important for several key reasons:
Regulations ensure that AI systems' key decisions comply with ethical and moral standards because they can substantially impact the lives of individuals.
Regulations help establish safety standards for AI systems and hold users and developers responsible for any harm from AI actions.
AI utilizes enormous volumes of data, and regulations safeguard an individual’s privacy by establishing data collection, storage, and use rules.
By addressing bias and discrimination in AI algorithms, regulations may ensure that AI systems serve everyone equally and without bias.
Regulations favor transparency in AI development, which makes it simpler for users to fully understand how AI systems function and make informed decisions.
Besides prohibiting monopolies and unethical commercial activities, clearly specified legislation can promote an encouraging environment for AI innovation.
Since AI is a global technology, it is essential to understand AI regulation to promote international collaboration and consistency in tackling AI-related challenges.
Regulations increase public confidence in AI technology, promoting their increased adoption and acceptance by individuals and organizations.
AI regulations can establish cybersecurity guidelines to secure AI systems from evolving malicious attacks and vulnerabilities.
Regulations provide a clear legal framework for dispute resolution by defining obligations and liabilities in the event of AI-related incidents.
Failure to comply with existing data privacy laws and upcoming AI regulations can have dire consequences for AI systems and models, such as legal consequences, hefty penalties, damage to an organization's reputation, and disruption of the AI model’s operations. Regulatory bodies don’t shy away from penalizing organizations engaged in malpractice. Recent examples include:
Clearview AI – fined nearly $8 million by the United Kingdom’s Information Commissioner’s Office for collecting personal data from the internet without obtaining consent of the data subjects. Similarly, the Italian data protection authority fined the company $21 million for violating data protection rules.
Replika AI – The Italian data protection authority banned the app from processing the personal data of Italian users and issued a warning to face a fine of up to 20 million euros or 4% of the annual gross revenue in case of non-compliance with the ban. The reasons for the ban cited by the regulatory authority included concrete risks for minors, lack of transparency, and unlawful processing of personal data.
ChatGPT – OpenAI was fined 3.6 million won by South Korea's PIPC for exposing the personal information of 687 citizens.
The regulatory landscape surrounding AI remains a tumultuous frontier, where hazy legal frameworks and evolving global standards developing in real time create a unique compliance challenge and a risky business environment. Therefore, it’s crucial for organizations developing AI models and systems to understand the importance of building an AI Governance framework and regulatory requirements surrounding AI.
Assess the risks of your AI system at the pre-development, development, and post-development phases and document mitigations to the risks. You must also classify your AI system, perform bias analysis, etc.
Ensure proper safeguards protect AI systems and the data involved from security threats, unauthorized access, etc.
Catalog your training data to ensure bias removal, anonymization, removal of sensitive personal data, removal of obsolete data, ensuring the data is accurate, ensuring data is minimized, etc.
Provide Data Subjects the right to opt-out of their personal data being used by AI systems (or to opt-in or withdraw consent) at the time of collection of their personal data.
Provide data subjects the right to:
Monitor the AI system to:
AI regulations remain a highly dynamic domain. Organizations utilizing AI services will not only be subject to intense scrutiny but will also find themselves having to comply with extraordinarily diverse obligations owing to just how unique each country’s regulatory attitude towards AI can be.
Request a demo today and learn more about how Securiti can help your organization comply with any AI-specific regulation you may be subject to.
At Securiti, our mission is to enable enterprises to safely harness the incredible power of data and the cloud by controlling the complex security, privacy and compliance risks.
300 Santana Row Suite 450. San Jose,