Title: AI System Inventories As Evidence of Organisational Control: A Wake-Up Call for Regulated Industries
What is happening: In regulated industries like healthcare, insurance, and financial services in Canada and the UK, organisations are increasingly investing in artificial intelligence (AI) to improve decision-making processes. However, before implementing these systems, it’s crucial to verify their capabilities and ensure they align with organisational operations, governance, and legal exposure.
Why it demands action now: AI system inventories have become a critical artefact regulators and boards ask for upon inspection. This is because organisations that cannot provide evidence of control over their AI systems risk facing significant consequences. Firstly, the technology may not perform as promised, leading to capability risks. Secondly, decision-makers may struggle to defend AI-driven decisions when questioned by regulatory bodies or courts, resulting in governance risks. Lastly, organisations may be held liable for any mistakes made by these AI systems, presenting liability risks.
The action: A prudent organisation should take the following steps:
1. Review and update its risk management framework to accommodate AI system inventories.
2. Ensure that AI system inventory processes are documented, auditable, and scalable.
3. Integrate AI system inventories into existing compliance programs.
How Straven helps: Independent validation from Straven & Co provides an additional layer of assurance for organisations looking to mitigate the risks associated with AI system inventories. We examine AI decisions against an organisation’s operations, people, governance obligations, legal exposure, and vendor claims, delivering a plain verdict – proceed, proceed with conditions, or do not. Our independence is essential in this context as we have no product to sell and earn nothing by recommending more, ensuring that our verdict can be trusted.
Straven & Co examines AI decisions before they are acted on: stravenandco.com