The challenges for compliance in AI governance (Compliance Week)

To achieve successful AI governance, compliance staff will need to understand AI’s reverse information paradox. Firms that purchase a sophisticated AI system will likely offer up valuable and sensitive information simply by using it. Compliance coupled with information security programs has historically sought to protect documents, databases, proprietary strategies, client data and personal information. Since AI will collect and learn the significance of this type of information, compliance must go beyond just protecting sensitive information. Importantly, it must ensure that the AI system – in retaining, analyzing and learning – utilizes the knowledge collected to benefit the firm and its clients while not creating compliance or cybersecurity issues. Compliance oversight of AI becomes a governance issue that must acknowledge the risks for intellectual property, third parties and internal controls. The role and responsibilities of compliance therefore become much broader when establishing a necessary control infrastructure to address the AI reverse information paradox. See Compliance Week (subscription required), “The Reverse Information Paradox: The role of compliance in AI governance”