As debates over how to regulate artificial
intelligence heat up, new research reveals concerns over current
and future policy effectiveness—and a lack of compliance
readiness
EMERYVILLE,
Calif., June 20, 2024 /PRNewswire/ -- In today's
fast-developing artificial intelligence (AI) regulatory landscape,
only about one-third of corporate leaders believe current
regulations are very effective and that future policy will provide
necessary guardrails, according to BRG's Global AI Regulation
Report, released today.
Drawing on survey responses from over 200
corporate leaders and executive-level lawyers in diverse industries
around the world—plus in-depth interviews with executives,
attorneys, and BRG experts—the new report assesses where AI
regulation currently stands, challenges organizations face in
complying and what key stakeholders see as most important for the
development of effective AI policy. The report includes breakdowns
of data in key industries (retail and consumer goods, technology,
and financial services), regions (North
America; Europe, the
Middle East and Africa; and Asia–Pacific) and roles (lawyers
and executives).
Additionally, the report discusses implications
for the US healthcare sector, drawing on findings covered in BRG's
recent AI and the Future of Healthcare report.
Organizations lack confidence in their
compliance readiness
In today's uncertain regulatory landscape—where
the misuse of AI creates significant regulatory, litigation and
reputational risk—just four in 10 respondents are highly confident
in their organization's ability to comply with current
regulations and guidance. When it comes to internal safeguards to
promote responsible and effective AI development and use, the
majority of respondents—and particularly those in the retail and
consumer goods sector—have yet to implement any of them.
Lawyers, as well as respondents from North America generally, are particularly
skeptical about the efficacy of current and future AI regulation.
But uncertainty also breeds opportunity.
"More and more, we're seeing a gap between what
outside counsel recommends and what executives are open to when it
comes to AI policies and procedures," says Amy Worley, a managing director and associate
general counsel at BRG. "Good advisers can say yes, there is
a lot of regulatory uncertainty, and where there is
uncertainty there is also value."
Future AI policy priorities
Respondents broadly agreed that the three most
important future focus areas for AI regulation are data integrity,
security and accuracy/reliability. Yet priorities diverge when the
survey results are broken out by region and industry. Executives
want policy to be more adaptable/flexible and
transparent/explainable, while lawyers are most concerned about it
being enforceable. Technology and financial services respondents
prioritize adaptability/flexibility too, while retail and consumer
goods respondents favor strictness.
All want comprehensiveness, though this may not
be so simple.
"Creating broad, comprehensive guidelines may
prove more difficult than people imagine," says Richard Finkelman, a managing director at BRG.
"A fault line already exists, for instance, between the US and the
EU over AI regulation and ethics—and it's getting larger, not
smaller."
The report also offers a thorough snapshot of
where current AI policy stands, from the EU's recently passed AI
Act to the US's more decentralized approach to the
Association of Southeast Asian Nations' more business-friendly
Guide on AI Governance and Ethics. It also delves into
mounting issues with AI-generated fake evidence and the risks of
noncompliance.
The full report can be downloaded at
thinkbrg.com/AIregulation.
About BRG
Berkeley Research Group, LLC is a global consulting firm that helps
leading organizations advance in three key areas: economics,
disputes and investigations; corporate finance; and performance
improvement and advisory. Headquartered in California with offices
around the world, we are an integrated group of experts, industry
leaders, academics, data scientists and professionals working
across borders and disciplines. We harness our collective expertise
to deliver the inspired insights and practical strategies our
clients need to stay ahead of what's next. Visit thinkbrg.com to
learn more.
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SOURCE Berkeley Research Group