Artificial Intelligence: Useful, but risky.

Four out of 10 executives are concerned about the legal and regulatory risks of artificial intelligence, according to a recent Deloitte survey.

Lawyers and their clients are increasingly becoming aware of the benefits of artificial intelligence, but the risks of the burgeoning technology have left some clients wary of implementing AI.

In fact, four out of 10 executives had a “high degree of concern about the legal and regulatory risks associated with AI systems,” according to Deloitte’s recently released survey “State of AI in the Enterprise.” 

Artificial intelligence regulations and its risks cut across many practice. Lawyers suggested that clients should be fully aware of the data used by their AI and to keep an eye on any results it provides.

Companies may be wary of implementing AI if the program’s results have broad applicability, are difficult to reverse or have results that aren’t predictable. For example, the possibly difficult position a financial institution may face if it uses AI when issuing a loan. In the event the software makes a discriminatory or incorrect decision, detecting, correcting or stopping the result may be difficult.

If the results of an AI program’s algorithm causes a “detrimental outcome” to customers that a business may not be aware of, U.K. regulators won’t allow an enterprise to use, “‘Oh well, I didn’t know the computer would do that’” as a defense.

The slow adoption of AI may be based on the lack of regulation regarding AI, uncertainty about how their AI implementation could be challenged and not seeking to change the status quo.

It’s important, when using AI, to know its integrated data and the science behind it. Cross validation of important data should be performed to determine which should be used and that users should constantly retest the algorithm.

Some organizations are tepidly embracing AI because of the amount of data needed for training artificial intelligence and machine learning.

Regulations

There isn’t a single law regulating artificial intelligence, lawyers said, and AI touches a myriad of legal issues. However, a few attorneys cited provisions in the European Union’s General Data Protection Regulation as targeting AI.

The GDPR’s AI regulations are geared toward programs not being able “to run out of control and make substantial effects without human intervention and monitoring.”

Taking a global perspective when assessing which jurisdiction an AI program is confide to artificial intelligence is not limited to one jurisdiction.

Clients seek advice on how to develop their product and product counseling to minimize the client’s legal liability. Clients tend to also ask for advice regarding the legislative outlook for AI and how to manage their risk.