Companies that lean heavily on AI need to think seriously about the risk implications for their business models and start documenting their use of the technology now, McGuireWoods London associate Adam Penman told Risk Management magazine in an Oct. 31, 2024, story.
Penman, a member of the firm’s Labor & Employment Department, said organizations should track legislative developments in relevant jurisdictions because AI regulation will develop country by country and compliance requirements may differ significantly. Businesses also should comprehensively audit their existing and anticipated use of AI systems, he said.
“It often surprises users of AI just how prevalent the technology is already,” Penman said. “From recruitment and HR tools to accounting processes and marketing, low-level AI has been integrated into working life for some time now and may not be immediately apparent.”
Penman added that naming a “go-to” AI person empowered to make decisions about navigating AI risks and held accountable for managing them will become more important because of increased regulatory requirements, scrutiny and financial penalties.
“There will never be a bad time to classify, assess and document the associated risk level of all AI to inform a risk mitigation strategy,” Penman said.