Artificial Intelligence and Data Analytics (AIDA) Guidebook

Security and Privacy Compliance

Security and Privacy Compliance refers to one of the very special and unique ways that AI can
help government as well as industry. AI has a unique and efficient ability to identify, monitor,
and address compliance issues in many different processes. This process was historically done
manually where a compliance team would sift through emails or phone records and flag
anything that appeared nefarious. While somewhat tedious, these compliance measures have
helped institutions maintain industry wide standards and regulations as well as their own
internal standards for employee conduct. However, over time technology has evolved and has
now become a mainstay across all industries, offering support and assistance to organizations
and institutions, making them more effective and efficient in their daily operations. More
specifically, artificial intelligence has provided industries and organizations with comprehensive
compliance tools that automate the process. There are, however, significant security and
privacy issues that are raised when such a system is utilized in a corporate or government
environment including concerns regarding bias, discrimination, and privacy. These concerns
have led to some calling for policymakers to introduce regulations on the technology.

Risks, Opportunities and Mitigations

Artificial intelligence-based and data analytic technologies present several unique risks,
opportunities, and corresponding mitigations. Some of these risks include increasing
automation of certain jobs, gender, and racial bias issues stemming from outdated information
sources or autonomous weapons that operate without human oversight. This is especially the
case with autonomous systems, a collection of networks all under the management of a single
organization or establishment. Autonomous intelligence refers to systems that can adapt to
different situations and can act without human assistance. The significant benefit to the use of
autonomous intelligence is that there are tremendous opportunities for reducing workload and
generating efficiencies, such as energy efficiency, more accurate demand forecasting, predictive
maintenance, optimized manufacturing processes, or automated material procurement,
amongst others. Care must be taken that such systems function in an environment where the
risk of failure does not result in a catastrophic result. When dealing with a high-hazard scenario,
the chance of failure rises, and mitigation factors and techniques are often implemented to
prevent or repair such incidents. The frequency and severity of these events, however, play a
huge part in determining how safe AI is considered. The possibilities in the financial services
industry are comparable. However, the risk and opportunities can be addressed differently
from the mitigation standpoint. This is the case because we are not dealing with a situation
where there could be a loss of life. An organization might apply an early warning system into an
early learning system that prevent threats materializing for real. While AI is still developing, it
can already be used to mitigate risk in some key areas.

Page 21