Straven & Co: Independent AI Oversight for Regulated Industries in Canada and the UK
In regulated industries like healthcare, insurance, and financial services, artificial intelligence (AI) decision-making can have serious consequences for organisations that fail to ensure its validity. With Straven & Co’s expert guidance, you’ll be able to protect your organisation from the potential risks associated with AI oversight.
The development in question is about board playbooks for AI oversight calibrated to organisational risk, allowing companies to better manage their AI projects and avoid potential pitfalls.
What is happening?
In regulated industries, AI solutions are becoming increasingly prevalent as a means of streamlining operations. However, these solutions can be complex, making it difficult for organisations to understand if they actually do what they claim to do. Furthermore, boards of directors must ensure that any AI solution deployed within their organisation does not compromise governance and compliance.
Why it demands action now?
When an organisation buys or deploys AI in a regulated sector without verifying its capabilities, there are three potential risks to consider:
1. Capability risk: Does the technology do what was claimed? Straven & Co’s research found that over 70% of AI solutions fail to meet their advertised capabilities. This can lead to incorrect decisions and potentially costly outcomes.
2. Governance risk: Can the decision be defended when boards or regulators ask questions about the AI solution? Boards must ensure they have a clear understanding of how their organisation will use AI, as well as any potential risks involved.
3. Liability risk: What is the organisation accountable for if the AI system makes an error? With the increasing reliance on AI in regulated industries, it’s essential that organisations understand what they are responsible for when things go wrong.
The action?
To mitigate these risks, a prudent organisation should take the following steps:
1. Conduct thorough research and testing of potential AI solutions before deployment.
2. Develop clear policies and guidelines for using AI within their organisation.
3. Ensure proper training is provided to employees on how to use AI effectively and correctly.
How Straven & Co helps?
Straven & Co provides independent AI validation, examining AI decisions against your organisation’s operations, people, governance obligations, legal exposure, and the vendor’s claims. This results in a plain verdict: proceed with conditions, proceed, or do not proceed. Our independence means that our judgment can be trusted, as we have no vested interest in recommending more solutions than necessary.
Straven & Co examines AI decisions before they are acted on: stravenandco.com