The GRC playbook for thriving in an AI-powered world

The widespread adoption of Artificial Intelligence (AI) has revolutionized industries across the globe. Businesses leverage AI tools to automate processes, improve decision-making and gain a competitive edge. As per a McKinsey survey on the current state of AI, as many as 40% of respondents have said their organizations will increase their investment in AI overall because of advances in technologies like generative AI.

The potential applications of AI are boundless, and we have only begun to explore its capabilities. However, AI also introduces many complexities and considerations. Striking a balance between the potential of AI and the careful oversight of Governance, Risk, and Compliance (GRC) is now more crucial than ever.

Why Enterprises Must Prioritize GRC for AI 

The rapid expansion of AI has reshaped the landscape of use cases and applications in every industry. AI is all-pervasive, from pioneering new drugs and treatments to analyzing financial data for risk factors to optimizing traffic flow. 

In fact, in sensitive areas like conducting vulnerability scans and system management, AI rapidly filters vast datasets, pinpointing vulnerabilities with unparalleled accuracy and speed. AI’s pattern recognition and anomaly detection capabilities are a crucial guide, assisting security teams in identifying potential weak points that might otherwise go unnoticed. This proactive approach allows organizations to promptly address vulnerabilities, strengthen defences, and safeguard their digital infrastructure.

This diverse utilization of AI brings forth both opportunities and challenges. While AI has revolutionized numerous industries over the years, it also prompts critical privacy, security, and fairness considerations. For example, bias is a top concern. Businesses must ensure their AI models are developed using diverse data sets, designed without bias and with constant monitoring. 

Given its status as an evolving and emerging technology, AI poses unique challenges for traditional governance, risk, and compliance (GRC) frameworks. Consequently, modern GRC frameworks need the flexibility and adaptability to navigate the dynamic and swiftly changing landscape of AI effectively and speedily.

As AI evolves and creates more substantial influence, organizations encounter fresh challenges in mitigating the risks linked to AI systems. The legal, ethical, and reputational considerations tied to AI necessitate enterprises prioritizing GRC for AI.

Top 5 considerations in GRC for AI

Here are the top 5 things to consider while looking at GRC for AI:

Assess Existing Resources

Organizations should assess their current status in terms of their GRC infrastructure, skills, and resources to ascertain if they are ready for AI. Companies aiming for a sustainable and effective AI approach to GRC must consider this. An AI Governance Program should include organizing an AI task force with representatives from different departments. 

Scale Up Gradually

Begin by implementing AI in specific areas. This could be compliance or risk assessment. Start by listing AI use cases and then perform a risk assessment. Gradually scale up with further enhancements. Develop corrective action plans to respond to identified risks.

Begin with Established Frameworks

Get started with established frameworks like NIST, FAIR, COSO, etc, for sustainable AI risk management. Involve all stakeholders in best practices. Pick out which internal Policies and Processes might be impacted using AI. 

Set Clear Roles

GRC for AI involves human-AI collaboration. Set clear roles for people with AI’s analysis, fostering seamless teamwork and recognizing AI’s complementary nature. 

Invest in training

Invest in AI training and education. Make sure to document a policy and train people. Depending on enterprise-wide policy, craft guidance for each department on their individual use of AI. Adapt and customize to the organization’s GRC processes and practices to keep pace with the latest AI technologies and trends.

The future of GRC in an AI-driven era

The evolving AI landscape opens a world of opportunities and challenges. While AI can potentially transform lives – and the workplace – significantly, it also poses inherent risks. Organizations must establish robust policies grounded in fairness, transparency, and accountability to ensure AI’s safe and ethical use within legal parameters. Through collaborative efforts in formulating effective AI policies, organizations can harness the capabilities of AI to gain a competitive advantage.

As enterprises navigate the captivating realm of generative AI, the guardianship of GRC professionals remains crucial. Their role in ensuring transparency, accountability, and data security will be critical. Combining GRC and AI, helps align GRC processes and enables an ethical approach to AI implementation. As technology evolves, the future will see AI seamlessly integrating with GRC, leading to effective corporate governance. 

The future of AI is promising however, organisations must ensure they have effective policies and regulations to govern its use. AI policies will ensure a more robust GRC framework that will help companies to harness the power of AI in driving innovation and growth while minimizing risk.

The article has been written by Gaurav Kapoor, Co-Founder and Co-CEO MetricStream