Industry executives and experts share their predictions for 2024. Read them in this 16th annual VMblog.com series exclusive.
Auditors will pay a lot closer attention to AI in 2024
By Emily Elizabeth, Vice President, Marketing &
Executive Team Leader at Onspring
Generative AI has taken us by storm in 2023 with many
organizations using the ground-breaking technology
for everyday tasks. Many companies are taking it a step further by building
their own Generative AI solutions. And while organizations grapple with whether or not employees are allowed to use AI, those
who ultimately do will need to assess risks, ensure compliance, address bias
issues, and establish data privacy and security best practices. AI technologies
offer tremendous promise, but also present significant legal and regulatory
challenges. To harness the benefits of AI while mitigating risks, auditors must
play a crucial role in setting up guidelines, provide
greater transparency, access risk, and ensure data
privacy and security best practices.
AI Regulations Will Gain a Foothold in 2024
The most significant change on the horizon for 2024 is the
establishment of AI regulations. Governments and regulatory bodies globally are
recognizing the need to regulate AI technologies as they become deeply
integrated into diverse industries. These regulations will set specific
criteria related to fairness, transparency, ethical adherence, data privacy,
and more. In response to these impending regulations, auditors will become the
gatekeepers of compliance, ensuring organizations adhere to the evolving legal
frameworks. Auditors will scrutinize AI systems and processes to guarantee that
they meet these newly established standards, protecting organizations from
potential legal complications and safeguarding the rights and trust of users.
Transparency Will be Paramount to Ensuring Accountable AI
Practices
Transparency is the linchpin of accountable AI practices,
and in 2024, auditors will guide this process. Auditors will demand an
unprecedented level of transparency in AI systems, requiring organizations to
provide clear insights into their decision-making processes, data sources, and
algorithmic operations. This focus on transparency extends to addressing bias
and fairness issues within AI systems. Auditors will be at the forefront of the
battle against biases, ensuring that AI systems are impartial and equitable.
This commitment to transparency not only engenders trust among stakeholders but
also underscores the need for ethical AI practices.
Auditors Will Put AI on Notice - Assessing Risk and
Ensuring Data Privacy and Security Best Practices
Compliance professionals' roles will expand, particularly in
assessing risk and ensuring the best data privacy and security practices within
AI systems. Auditors will scrutinize AI inputs for various critical aspects,
including:
-
Assessing Risks: Auditors will assess and
mitigate risks associated with AI deployment. This will include identifying
vulnerabilities that could lead to unintended consequences, thus enhancing the
reliability of AI systems.
-
Data Quality and Model Performance: The quality
of data used in AI systems and the performance of underlying models will be
subject to rigorous scrutiny. Auditors will ensure that data is processed
effectively, leading to more robust and dependable AI systems.
-
Enhancing Security: Data privacy and security
will be paramount concerns for auditors. They will ensure that data used in AI
systems is handled securely, protecting against data breaches and cyber
threats.
Not All Tech Tools Are Equal When It Comes to AI Auditing
As new AI regulations emerge, auditors will need more robust
solutions than simple spreadsheets. AI regulations will require auditors to
work across the aisle with compliance professionals, making static spreadsheets
cumbersome and ineffective. Auditors will look to technology vendors that offer
dynamic workflows, automate risk assessments, and provide live dashboards where
employees across the organization can collaborate effectively.
Auditing AI inputs is not merely a trend; it is a necessary
step towards responsible and accountable AI deployment. Auditors are set to
assess and verify AI systems for compliance with regulations, ethical
standards, and best practices. As AI regulations become more entrenched,
transparency takes center stage, and risk assessment and data privacy and
security practices will be reinforced throughout the auditing process.
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ABOUT THE AUTHOR
Emily Elizabeth is Vice President, Marketing &
Executive Team Leader at Onspring, a
no-code GRC software that connects data and teams to improve business
intelligence, governance, alignment, and resilience.