Title: 88% of Organisations Now Use AI in at Least One Function – And That Changes Your Exposure
Across healthcare, insurance, and financial services in Canada and the UK, an astonishing statistic has taken hold: almost nine out of ten businesses now use artificial intelligence (AI) in at least one business function. This ubiquity has far-reaching implications for executive decision-makers, as it means every regulated small or medium-sized enterprise (SME) has an AI decision in flight, whether governed or not.
What is happening?
Organisations across the spectrum are adopting AI to streamline processes, improve accuracy, and reduce costs. AI applications range from chatbots supporting customer service to predictive analytics helping manage risk portfolios. While these technological advancements offer numerous benefits, they also present a critical challenge: ensuring that AI decisions align with an organisation’s governance obligations and legal exposure.
Why it demands action now
As AI becomes increasingly prevalent in regulated sectors, organisations must address three significant risks:
1. Capability risk: Does the AI technology do what was promised? This is a pressing concern for healthcare, where a confident but wrong answer can have life-or-death consequences.
2. Governance risk: Can an organisation defend its AI decisions when regulators or boards ask questions? Effective governance is crucial to mitigate potential liability and reputational damage.
3. Liability risk: What is an organisation accountable for if the AI system makes an error? The answer lies in whether the organisation can demonstrate that it took reasonable steps to ensure the AI decision was accurate, relevant, and unbiased.
The action
To proactively address these risks, organisations should:
1. Conduct a thorough review of their existing AI applications and plans.
2. Ensure they have a clear understanding of how each AI solution operates and its potential impact on governance obligations and legal exposure.
3. Develop an AI strategy that aligns with organisational goals and integrates governance, risk management, and compliance considerations.
Straven & Co examines AI decisions before they are acted on
In today’s fast-paced business environment, executive decision-makers can struggle to independently validate the claims of AI vendors and assess whether these technologies align with their organisation’s specific needs. That is where Straven & Co comes in – an independent AI validation firm that provides organisations like yours with a straightforward verdict: proceed, proceed with conditions, or do not.
Straven & Co examines AI decisions against your operations, people, governance obligations, legal exposure, and the vendor’s actual claims, delivering a plain verdict to protect you from:
1. Unexamined AI decisions.
2. Compliance risk.
3. Liability.
For more information on how Straven & Co can help you navigate this critical decision, please visit https://stravenandco.com.