Taking a methodical and use-case-driven approach may allow a business to embrace the transformative power of AI in critical areas while managing “wild west”-style use by employees without governance approval.

Abstract:

The burgeoning realm of AI presents a double-edged sword: its potential to enhance efficiency spans sectors, yet it bears considerable risks for privacy, equity, and human rights due to possible inaccuracies, hallucinations, and biases. There has been a call for regulation by both federal and state bodies, fostering a tapestry of AI-related legislation, regulations, and guidance. This paper addresses the demands of navigating this evolving legal milieu, emphasizing the need for a practical AI governance framework that businesses must embrace to harness AI’s transformative promise responsibly. With the regulatory landscape being as fragmented as it is—and with guidelines emerging from numerous authorities such as the FTC, SEC, and state privacy laws—businesses should take a diligent, strategic, and technically nuanced approach to AI governance.