Deploying artificial intelligence (AI) technology has become a priority for businesses worldwide as they strive for competitive advantage and operational efficiency. However, establishing and implementing effective governance has emerged as the primary challenge in this endeavor, according to a recent report by global law firm DLA Piper. Titled “AI Governance: Balancing Policy, Compliance, and Commercial Value,” the report highlights the critical role of governance in successfully navigating the intersection of AI, risk, and compliance.
The report, based on a comprehensive survey of 600 business leaders across multiple regions, sheds light on the key findings and realities in the field of AI. Notably, 96 percent of respondents confirmed that their organizations are currently deploying AI, with 72 percent relying on solutions provided by third-party vendors. Furthermore, 45 percent of respondents perceive AI as a crucial driver of value creation, while 41 percent fear that their core business functions may become obsolete without embracing AI.
However, the path to harnessing the benefits of AI is fraught with obstacles. The study reveals that 99 percent of businesses struggle to establish and implement effective governance practices, which they have identified as a top priority. Ensuring regulatory compliance is another major concern, with 96 percent of respondents striving to align their AI initiatives with legal frameworks.
The report also highlights the challenges faced by organizations when it comes to data privacy and the lack of a robust governance framework. Approximately 43 percent of respondents reported interruptions, pauses, or rollbacks in AI projects due to data privacy issues, while 37 percent cited a lack of governance as a common obstacle. Moreover, ethical concerns have prompted 65 percent of businesses to terminate contracts with AI suppliers.
Frequently Asked Questions (FAQ):
1. What is AI governance?
AI governance refers to the establishment and implementation of policies, frameworks, and processes to ensure ethical, responsible, and compliant use of artificial intelligence technology within organizations.
2. Why is AI governance important?
AI governance is crucial to address the potential risks and challenges associated with AI, such as data privacy, regulatory compliance, and ethical concerns. It ensures that organizations leverage AI technology in a manner that aligns with their values and objectives.
3. How do businesses struggle with AI governance?
According to the DLA Piper report, businesses face challenges in establishing and implementing effective governance practices for AI. These challenges include defining clear policies, adhering to regulatory guidelines, and integrating AI decision-making processes with legal and compliance teams.
DLA Piper. (2022). AI Governance: Balancing Policy, Compliance, and Commercial Value. [URL of the domain]