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AI-Regulatory and Compliance Challenges

The document discusses several key compliance and regulatory challenges with artificial intelligence, including privacy and confidentiality, accountability and liability, governance, bias and discrimination, and algorithmic transparency. It notes that AI has implications for personal privacy as a fundamental right. It also discusses issues around who would be liable if autonomous AI causes damage and whether algorithms could be subject to traditional liability frameworks. Finally, it mentions the lack of transparency with algorithms and how this poses challenges, especially in regulated industries.

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Andrew Wat
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78 views1 page

AI-Regulatory and Compliance Challenges

The document discusses several key compliance and regulatory challenges with artificial intelligence, including privacy and confidentiality, accountability and liability, governance, bias and discrimination, and algorithmic transparency. It notes that AI has implications for personal privacy as a fundamental right. It also discusses issues around who would be liable if autonomous AI causes damage and whether algorithms could be subject to traditional liability frameworks. Finally, it mentions the lack of transparency with algorithms and how this poses challenges, especially in regulated industries.

Uploaded by

Andrew Wat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Artificial Intelligence: Compliance and Regulatory Challenges

1 PRIVACY & CONFIDENTIALITY 3 GOVERNANCE 4 BIAS & DISCRIMINATION


• The expansion of AI has implications on personal privacy, AI algorithms have common features that • The AI industry is fast-moving and largely unregulated.
which is a fundamental human right. will complicate overall governance : • Developers will need to avoid “Bias deep inside the code”.
• Some of the information learned might be private or • There are no one-size-fits-all solutions. • Algorithms must not discriminate on grounds of age,
confidential even when the data mined to extract this insight • Governance is going to have race or gender.
might not be considered as PII or confidential. cross-border nature, requiring global • Ethical standards will need to be defined and enforced.
• This might be particularly serious under regulations like dialogue and collaboration. This is not going to be an easy process for regulators.
GDPR. • The AI industry is evolving quickly. • Bias and discrimination are going to be critical for
Governance and Regulatory initiatives are compliance in Financial Services, Government Services and
slow by nature. generally speaking in highly regulated industries.

2 ACCOUNTABILITY & LIABILITY 5 ALGORITHMIC TRANSPARENCY


This is both a fascinating and extremely complex issue. • If we do not know what an Algorithm is doing, we cannot
Several questions arise: hold it accountable.
• Who is going to be liable when autonomous • The transparency topic might be a serious issue in
decision-making, AI enabled, processes cause damage? particular in regulated industries.
• Will sophisticated or autonomous algorithms be subject • This is especially problematic when implicating people,
to traditional product liability legal frameworks? and it is not easy to address this problem as just because
• Is there a need to create a new treatment for “Thinking someone has access to the ML code, it does not always
Algorithms”? equal being able to explain how the software works.
• Will it be needed to create a classification and specific • Transparency affects several dimensions, including:
treatment based on their level of autonomy? • Data and Algorithms used
• Goals and Outcomes
• Influence and potential manipulation

SO cyberstartupobservatory.com Cyber Startup Observatory - Insight

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