US bolsters AI regulation and compliance standards
- The US Department of Justice (DOJ) is increasing scrutiny on the use of AI in the justice system, particularly in areas such as fighting drug trafficking and analyzing data evidence in legal cases.
- The Deputy Attorney General announced updates on corporate compliance guidelines for firms developing, selling, or implementing AI tools, which will be integrated into the DOJ’s Evaluation of Corporate Compliance Programs.
- Non-compliant US firms may face more challenging pathways to corporate criminal resolutions, including the allocation of an independent compliance supervisor and stiffer penalties.
- The DOJ expressed concerns over the dangers of AI in criminal hands and plans to seek stiffer sentences for individuals and corporate defendants involved in deliberate misuse of technology for white-collar crime.
- A new DOJ whistleblower scheme is being introduced to incentivize the reporting of corporate malpractice, with pilots of the program scheduled for later in 2024.
- The US Attorney’s Office for the Southern District of New York recently charged two individuals with hacking online entertainment accounts and gambling platforms using generative AI tools.
- RegTech Adviser and Law Professor Stan Yakoff highlighted challenges faced by businesses as they integrate AI with compliance functions, emphasizing the importance of clearly understanding and articulating the problem statement being solved.
