The decision of whether to implement an AI governance policy depends on a range of factors, including how the company uses AI, how much risk is involved and how use will affect stakeholders. Sarah Hutchins and Robert Botkin of Parker Poe explore how to know when to establish an AI governance policy — and when companies might not need them.
In the complex landscape of technological advancements, the implementation of artificial intelligence (AI) is becoming commonplace across various industries.
As businesses integrate AI into their operations, they might ask themselves: Do I need a policy governing how I use and deploy this technology? The answer is not always a clear yes, as some industry experts might lead you to believe. Understanding when an AI governance policy is necessary is crucial for companies navigating this evolving terrain.
Generally, we can categorize businesses into three buckets: Creators, open-ended users and closed-end users. The AI policy for these three types of businesses will vary considerably.
Creators are businesses that either directly develop AI tools or are integrating an AI tool into an existing product to enhance functionality. A retail brand, for example, that integrates a generative AI chatbot into its mobile app to help consumers find the product they are looking for…
