Author(s):
Sam Ip
Apr 23, 2024
Artificial Intelligence (AI) has made radical strides in the past year, reshaping the global business landscape. With the rapid adoption of generative AI, companies are eager to streamline processes and ease workloads. However, amidst the excitement, it’s crucial for business leaders to tread carefully and assess potential risks and liabilities associated with this emerging technology.
In the video below, Osler Technology Group partner Sam Ip offers valuable insights on navigating the swift integration of generative AI systems and how to proactively safeguard your business. Our team of AI experts is at the forefront of this evolving landscape, regularly preparing policies and offering guidance on AI governance developments. Stay informed and protect your business by subscribing below.
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Video transcript
SAM: Hi, I’m Sam Ip, a partner in the Technology group at Osler and I work with clients helping them to navigate the rapid adoption of artificial intelligence in their organizations.
The evolution of AI has been remarkable over the past year. AI is being used to code, to write and to produce media.
Businesses have quickly adopted generative AI in the hopes of gaining efficiencies and lightening workloads. But before taking advantage of the emerging technology, business leaders should consider how to protect their companies from AI-related risks and liabilities.
The first step should be to assess how an organization intends to use AI. Are you going to be a developer of the technology? Are you going to a deployer of the technology as part of a product or service? Or are you just going to use the technology as part of your business? The risks are different depending on the answer.
Every organization that uses AI, however, should establish a governance framework for responsible AI and develop policies and protocols for the technology. These should take into account issues such as accuracy, safety, fairness, bias and transparency. They should also address an important consideration in high-risk use-cases: human oversight.
Accountability is critical for any company using AI. You must have a way to report, escalate and resolve problems. You should also have a way to assess the performance of an AI system and measure its impact.
It isn’t enough to think about AI alone. Companies need to consider the bigger picture.
How does AI fit into your governance framework?
For example, think about confidentiality. Is there a need for AI-specific policies? Or can your existing policies be clarified and adapted to include AI? What do your existing policies say about feeding sensitive, confidential or proprietary information into generative AI services? Do you have rules in place about using confidential information to train or enhance AI models — especially if the AI technology isn’t hosted on your servers.
With widespread adoption of AI in the horizon, now is the time to lay the groundwork for responsible development and adoption of AI. Ethics by design should be integrated from the outset. Doing it now will save time and money later. This is especially true as governments are starting to regulate the use of AI and are paying attention to ethical concerns.
The federal government is working to pass the Artificial Intelligence and Data Act (AIDA). Ottawa has also worked with businesses to create a Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI systems.
Beyond government bodies, organizations such as the Digital Governance Council are establishing standards for Canadian innovators. And the Office of the Superintendent of Financial Institutions and the Global Risk Institute have issued a joint report offering guidance on AI for financial services institutions.
With so many evolving aspects to AI management and governance, it’s hard to keep up to date. But Osler’s team of experts is here to offer guidance and solutions that will help keep your adoption of AI — and your business -- safe and in compliance with best practices, policies, and regulations.