Given the real and significant potential benefits of AI, companies have to be careful in the rush to implement AI technology. Starting with a clear use case, companies have to weigh the potential benefits of AI technology and identify the legal and compliance risks. An AI compliance program is a critical element of a corporate governance structure. Building on this specific policy, companies need to establish a governance structure adequate to their specific use cases.
The legal and compliance risks surrounding AI is a rapidly evolving area that stretches across numerous jurisdictions. The FTC has issued enforcement guidance, many states are adopting laws (e.g. Colorado, California) and the European Union AI Act. Add to this equation the rapid adoption of sector-specific rules, including financial services, healthcare, and defense and export controls.
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