The recent rapid development of artificial intelligence (AI) poses new challenges for all businesses. New application scenarios for AI systems are being developed at a rapid pace, existing processes are being accelerated and new products and business models are emerging. The innovative power of AI also makes it necessary to intervene at an early stage in order to avoid risks and shape the use of artificial intelligence in line with business objectives.
AI governance encompasses the framework conditions, guidelines and practices that ensure that AI is developed and used responsibly, ethically and in accordance with human values. The aim is to steer the development and application of AI systems in such a way that they serve social interests, minimize risks and maximize positive effects. Important aspects of AI governance therefore include compliance, data protection, transparency, security, fairness and accountability.
The purpose of AI governance is to create framework conditions and processes and to define responsibilities for the use of AI in the company. AI governance properly understood does not restrict or even prevent the use of artificial intelligence. Instead, AI governance creates a safe corporate environment that enables the use of AI and promotes it in line with the company's objectives. By setting framework conditions that are open to revision and establishing transparent processes, AI governance creates an open innovation space. AI governance understood in this way promotes innovation, increases the efficiency of business processes and thus strengthens sustainability and increases the competitiveness of companies.
At the same time, AI governance ensures that risks are identified and addressed at an early stage and that important corporate principles are complied with. The overriding objective is therefore to establish a control framework for compliance with the following principles:
Source: own presentation
In view of the rapid further development of AI and the ongoing development of the relevant legal and socio-political environment, AI governance must be designed to be open to development and enable ongoing development through inherent controls. It is also important for the successful implementation of AI governance within the company that AI governance is tailored in terms of complexity to the company and the importance of specific AI use cases relevant for the company. In this respect, it will also be necessary to differentiate between the perspective as a provider and developer of AI systems and as a user of AI systems.
Legislation provides various important guardrails for the design of AI governance in the company. The AI Act and the EU Product Liability Directive, as well as the upcoming AI Liability Directive, are of central importance here. Other relevant legislation exists in areas such as data protection, intellectual property, employment law (for example, issues of co-determination and employee data protection) as well as corporate law and corporate governance. Sector-specific requirements, for example in the insurance, banking or healthcare industry, can also be of considerable importance.
While the legal requirements apply uniformly for all market participants, it is up to the company management to define guidelines for dealing with AI in accordance with the legal framework and to develop an AI strategy. AI governance is based upon such guidelines and will work towards implementing the company's AI strategy.
Another prerequisite for functioning AI governance is transparency regarding the use of AI in the company. To this end, existing AI projects and use cases within the company should be systematically recorded. The systems used and their deployment can be recorded in a company-wide AI register, which contains the essential information on the use of AI in the company, similar to the register of processing activities in accordance with Art. 30 GDPR.
Such AI register forms the basis for AI-related risk management. The risks arising from the use of AI must be identified, assessed and managed.
Source: own presentation
Are you involved in AI governance yourself or are you interested in topics related to AI governance? We would be happy to get in contact and keep you updated on the topics of AI and AI governance. We look forward to receiving your message at ki-governance [at] goerg.de (ki-governance[at]goerg[dot]de).
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