Canada’s AI Strategy ‘AI for All’ Puts Pressure on Healthcare, Insurance, and Financial Services to Adopt Artificial Intelligence without a Regulatory Framework
The Canadian government has launched the national AI strategy ‘AI for All’, aiming to foster growth in the country by creating trust between businesses and customers. However, this push for adoption raises significant concerns for healthcare, insurance, and financial services executives in regulated industries, who must navigate the risks of adopting artificial intelligence (AI) without a clear regulatory framework.
As an executive or decision-maker in these sectors, your exposure lies in three critical areas: capability risk, governance risk, and liability risk. Capability risk arises from AI systems that may not do what they claim to do; governance risk stems from boards or regulators asking questions about decisions made using AI; and liability risk involves being held accountable for the actions of AI when it makes mistakes.
The development sharpens capability risk particularly well due to vendor information asymmetry, where businesses often struggle to determine the actual capabilities of the AI solutions they are considering. It is challenging to assess whether an AI system truly meets the needs of an organization without engaging independent validation. Additionally, internal teams may be too close to the decision-making process and may not be able to provide an objective assessment of the solution.
In response, prudent organizations should take strategic steps to address these risks. They must first examine their existing operations and governance structures to identify areas where AI could improve decision-making while ensuring accountability for AI-driven decisions. This examination should involve a review of vendor claims and comparing them against real-world scenarios.
Straven & Co can help organizations navigate this process by providing independent validation services that test the proposed solution against the organization’s actual operations, its people, its governance obligations, and legal exposure. Our firm delivers a plain verdict – proceed, proceed with conditions, or do not – ensuring that organizations make informed decisions about AI adoption.
Straven & Co examines AI decisions before they are acted on: stravenandco.com