A Practical Guide to AI Governance in the U.S.

Cynthia Shoss (Eversheds Sutherland (US) LLP.) |

Artificial intelligence (AI) holds extraordinary potential for achieving heightened operational and cost efficiencies, fostering innovation and growth, increasing competitive advantage and enhancing engagement with customers. It also presents extraordinary risk potential.

Given the complexity of AI systems and the risks, robust governance is essential. Companies will increasingly have to demonstrate to regulators and ultimately in defense of litigation that their AI uses are fair, ethical, accurate, compliant, transparent, explainable, safe, and secure, and that they are appropriately overseen. Transparency includes visibility across the company as well as disclosure to consumers and regulators.

Unless the U.S. government imposes a moratorium, we expect the regulation of AI to continue to evolve and increase, at least at the states level where insurance is regulated in the U.S. And, in a growing trend since the Financial Crisis, regulators expect evergreater oversight by Boards in more and more areas,