AI Is Moving Faster Than Attempts to Regulate It. Here’s How Companies Are Coping

Companies like Goldman Sachs and Nationwide Mutual Insurance are forging ahead with the development and deployment of AI applications despite the evolving regulatory landscape.

European lawmakers recently approved comprehensive legislation on artificial intelligence, while the U.S. and individual states are at varying stages of progress in this area.

Regulators are scrutinizing potential threats to customer privacy, data security, and the potential bias and inaccuracy of AI algorithms.

Companies are proactively establishing internal guidelines and frameworks for using data and AI, anticipating future regulations.

Nationwide Mutual Insurance utilizes a “red team, blue team approach” to explore AI opportunities while considering concerns around cybersecurity, bias, and government regulation.

AI regulations may differ from nation to nation or state to state, adding complexity to how companies operate their AI tools.

Goldman Sachs has set up a committee to address the risks associated with deploying AI and maintains a constant dialogue with regulators to ensure internal AI use cases address those risks.

The recently passed AI Act in Europe is expected to have a global impact, as large AI companies are unlikely to forgo access to the EU market.

In the U.S., over 500 pieces of AI-related legislation have been filed, indicating significant activity in this space.

Some companies, like KeyBank, are more focused on cases that align with existing regulations and are cautious about deploying AI tools to ensure they align with their values and can be monitored effectively.