AI governance: Ensuring safe adoption of AI technologies | HCLTech

AI governance: Ensuring safe adoption of AI technologies

Understanding the risks associated with AI and the need for secure, ethical and compliant AI implementations
 
7 minutes read
Pallavi Parashar
Pallavi Parashar
Global Thought Leadership, HCLTech
7 minutes read
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AI governance: Ensuring safe adoption of AI technologies

The rapid adoption of artificial intelligence (AI) has revolutionized industries across the globe. However, with great power comes great responsibility. According to studies, Global AI adoption has reached 72%, with 42% of businesses actively exploring AI solutions. The market size is projected to grow to $407 billion by 2027, driven by a 64% increase in productivity attributed to AI technologies. As AI technologies advance, the importance of robust governance frameworks cannot be overstated.

Understanding AI governance

AI governance encompasses strategically designed processes and frameworks for overseeing the lifecycle of AI systems, from their initial development through to deployment and continuous management. This ensures that AI-based solutions are securely built, ethically sound and in harmony with established guidelines, legal standards and an organization's strategic objectives. By adhering to these governance protocols, organizations can foster AI technologies that are not only advanced and reliable but also ethically responsible and compliant with regulatory demands.

While speaking to Trends & Insights at the 2024 World Economic Forum’s Annual Meeting, Ashish K. Gupta, Chief Growth Officer, Europe and Africa at HCLTech, discussed the potential of AI, how to ensure it's adopted in an inclusive manner as a force for good and the importance of building trust to drive its widespread adoption.

"We can't lose sight of the fact that with this powerful technology comes huge responsibility on all of us. We need to take that responsibility seriously," commented Gupta.

Risks associated with AI

While AI offers numerous benefits and transformative potential, it also introduces a range of risks that need careful consideration and management. Here are some of the primary risks associated with AI:

  • Bias and fairness

AI algorithms can exhibit bias, leading to unfair results. This can occur if the data used to train the models is skewed or non-representative. Bias in AI can have significant implications, including unethical outcomes and legal repercussions. Ensuring fairness involves rigorous testing, transparency and measures to mitigate bias.

  • Data privacy and security

The use of AI often involves the processing of vast amounts of sensitive data, raising concerns about data privacy and security. Breaches can result in misuse of this sensitive information, potentially leading to identity theft, financial loss and damage to an organization's reputation. Robust data protection measures and strict access controls are essential to safeguard against these risks.

  • Compliance and regulatory

Compliance with regulatory frameworks such as GDPR, the EU AI Act, AIDA and FTC Guidelines is critical for organizations deploying AI systems. Non-compliance can result in hefty fines, legal challenges, operational disruptions and reputational damage. Staying abreast of regulatory changes and embedding compliance within AI development and deployment processes is necessary to avoid legal complications.

  • Operational

Operational risks include the potential for AI systems to generate inaccurate results. This can stem from flaws in the algorithm, inadequate training data or unforeseen changes in the environment where the AI operates. Inaccurate results can undermine decision-making processes and lead to financial and reputational damage. Continuous monitoring, validation and improvement of AI systems are vital to ensure their reliability and accuracy.

Regulatory compliance landscape to AI adoption

The regulatory landscape for AI adoption varies across regions, with specific laws and frameworks in place to address the unique challenges posed by AI. In Canada, PIPEDA, the Artificial Intelligence & Data Act (AIDA) and the Directive on Automated Decision Making govern AI practices. Brazil has established the Brazil AI Act, while China enforces the PIPL along with the Cybersecurity & Data Security Law. India is guided by the Digital India Act and the US follows the AI Bill of Rights. The European Union has implemented the GDPR and the AI Act to regulate AI activities. South Korea has its AI Act and the Middle East is guided by the Council for AI & Blockchain, highlighting global efforts to ensure ethical and secure AI adoption.

To ensure robust AI governance, organizations should adhere to the following requirements:

  • Governance requirements: Classify AI systems, conduct logic audits and ensure AI system integrity
  • Disclosure requirements: Transparently disclose the use of data in AI solutions and the logic behind AI decision-making processes     
  • Data subject rights requirements: Ensure individuals have the right to opt out of AI profiling and appeal against automated decisions     
  • Assessment: Regularly assess AI systems for risks and data protection     
  • Security safeguards: Protect both AI systems and the data they utilize     

Ensuring safe AI adoption

Effective AI governance is critical for the safe adoption of AI technologies, including generative AI (GenAI). The following five steps can be undertaken to ensure a robust AI strategy.

  • Step 1: Start with AI model discovery to catalog models across public clouds and SaaS applications     
  • Step 2: Conduct thorough AI risk assessments to evaluate risks associated with data and AI models      
  • Step 3: Implement data and AI mapping to link models with data sources, processes and vendors      
  • Step 4: Establish robust controls for managing sensitive data in model inputs and outputs      
  • Step 5: Finally, ensure regulatory compliance by conducting necessary assessments, such as those outlined in the NIST AI Risk Management Framework (RMF), to adhere to relevant standards     

HCLTech’s AI GRC services

AI and GenAI adoption spans across multiple industries, adapting to varied business requirements. This widespread integration underscores the need for industry-agnostic solutions applicable to numerous stakeholders.

To support responsible AI adoption, HCLTech offers a comprehensive suite of AI Governance, Risk and Compliance (GRC) services:

  • AI governance frameworks: We provide customizable guidelines and policies tailored to your specific needs     
  • Model monitoring tools: Our solutions effectively track and monitor AI model performance     
  • Risk assessment services: We conduct thorough evaluations to identify and mitigate AI risks while ensuring compliance     
  • Training and education: We offer educational programs to empower clients with knowledge about responsible AI practices     

By leveraging these services, organizations can ensure secure, compliant and efficient AI implementations.

TRiBe Control Framework for GenAI security

HCLTech’s TRiBe Control Framework enhances your existing security architecture with GenAI-specific measures to ensure TRUST, manage RISK and maximize BeNEFIT. The framework includes comprehensive compliance and standards adherence through data classification, privacy controls, security standards and compliance reporting. Key elements include implementing a zero trust security architecture, identity and access management, micro-segmentation, data encryption, endpoint protection and robust perimeter security. This multifaceted approach ensures secure and compliant GenAI deployment, safeguarding both data integrity and infrastructure.

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The future ahead for AI governance

As we look to the future, the promise of AI is enormous, but it comes with a set of responsibilities that can't be ignored. The focus will increasingly shift toward creating and sticking to comprehensive governance frameworks, ensuring that AI systems are not just cutting-edge and efficient, but also ethical, secure and compliant with global regulations.

"The future of AI is promising and transformative, but it comes with a responsibility to implement diligent governance practices. By prioritizing compliance, transparency and risk management, we must pave the way for an ethical and secure AI landscape", says Jatin Arora, Associate Vice President, Cybersecurity – Governance, Risk, Compliance & Resiliency at HCLTech

For organizations, adopting diligent AI governance practices and tapping into specialized services, like those offered by HCLTech, will be crucial. This approach will enable them to harness the incredible potential of AI, all while acting responsibly. By prioritizing transparency, regulatory compliance and thorough risk assessments, businesses can build trust and safeguard the integrity of their AI solutions, paving the way for a future where technology and ethical considerations go hand in hand.

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