As businesses continue to adopt AI tools, the well-meaning ones are also contemplating policies to govern usage. But many of the policies lack any true enforceability, making them more compliance theater than proper controls. Cory McNeley, a managing director in UHY’s technology innovation section, explores how companies can evolve their AI policies beyond just a press release.
Immediately in the wake of the rapid rise in popularity of ChatGPT, organizations were fearful. As a result, they adopted grandiose aspirational policies to try and control the sprawl of AI. The problem is these policies were often vague and unenforceable, much less well-controlled. Let’s be honest: A policy without an understanding of the risk surface and accompanying controls is not a policy. It is simply a false sense of compliance and security.
An AI policy must move beyond basic principles. It must clearly define the governance of who, what, when and how AI is used. This includes basics like who is allowed to use AI, what AI they are allowed to use, what are the acceptable business uses and what principles must be followed to help ensure the protection of customers, personnel and shareholders. Reasonable boundaries must be set, implementation standards followed and internal controls implemented to prevent and detect unintended and harmful outcomes. We all thought acceptable-use policies for the internet were tricky. This is a whole other level. Without sound policy, AI becomes a liability instead of a tool.
Overly broad policies don’t work
So why do most AI policies fail? It is quite simple. They are overly broad. They contain loose language, such as “use AI responsibly.”
Read this article in full here.
UHY is one of the nation’s largest professional services firms providing audit, tax, consulting and advisory services to clients primarily in the dynamic middle market. We are trailblazers who bring our experience from working within numerous industries to our clients so that we can provide them a 360-degree view of their businesses. Together with our clients, UHY works collaboratively to develop flexible, innovative solutions that meet our clients’ business challenges. As an independent member of UHY International, we are proud to be a part of a top 20 international network of independent accounting and consulting firms.
