This audio is automatically generated. Please let us know if you have any feedback.
Diving certificate:
- In a tightening AI regulatory landscape, executives are grappling with the impact of new rules on implementation plans and existing practices. KPMG Survey published Thursday found.
- More than half of executives expect compliance with data privacy and security requirements will increase costs for their organization, and nearly two-thirds of executives expect requirements to become more stringent as regulators revamp policies.
- To prepare for stricter regulations, 3 out of 5 Companies are currently reviewing and updating their privacy practicesAbout half of the organizations implement technical measures to improve the transparency and fairness of AI applications.
Diving insight:
Regulators are closely monitoring the AI landscape, from enterprise deployment to supplier partnerships and corporate practices.
In the UK, regulators are assessing the impact on market competition of several AI partnerships between technology companies, including OpenAI, Microsoft, Amazon, Anthropic and Google. Just last week, the Competition and Markets Authority a formal investigation in the partnership between Amazon and Anthropic.
The EU AI Act has also raised the stakes for manufacturers and providers of AI models. The law came into force earlier this month and is expected to have an expanded international reach, similar to the General Data Protection Regulation. Organizations have a lot to do before enforcement begins, in accordance with Enza Iannopollo, principal analyst at Forrester.
“Every company must implement a compliance roadmap that is tailored to the set and combination of its use cases,” Iannopollo said in an email. “Virtually every company will have a compliance roadmap that is unlike any other.”
Under the oversight of the U.S. federal government, AI is regulated by existing laws. However, some states have worked to enact targeted rules, such as Colorado’s AI law, and others have proposed legislation, including California Senate Bill 1047which is currently being discussed in Parliament.
Compliance can result in additional costs for companies, such as hiring legal counsel, updating practices and technology, or paying outside partners for assistance.
“The regulatory focus on AI and cybersecurity will remain intense,” Amy Matsuo, Principal and Regulatory Insights Leader at KPMG, said in an emailThe looming patchwork of regulations could be difficult for companies to manage if leaders do not keep pace.
Despite these challenges, most companies are not afraid to change their goals.
Managers are Providing more money and resources to achieve AI goalsMore than three quarters of managers KPMG said it remains confident of the technology’s ROI over the next three years.
Technology leaders are working to put companies on the road to success by careful consideration of value and risks of tools and applications. Nearly 4 in 5 executives say cybersecurity is the most important focus area for current efforts to mitigate generative AI risk, closely followed by data quality, according to KPMG.
To avoid the initial development costs and required technical expertise, companies often turn to third-party providers when integrating generative AI. More than half of the managers, However, by using third-party tools, they run the risk of violating legal regulations.
According to KPMG, even more (76%) are concerned about the privacy and security of their data when working with third parties.
