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.
