Hogan Lovells 2024-2025 AI Trends Guide - Flipbook - Page 6
Building AI and data ethics programs in line with environmental, social,
and governance values
AI possesses the ability to make and inform significant
decisions that impact individuals lives, businesses, and
society at large. The endless benefits of AI inevitably come
with an array of potential risks not previously addressed
by industry, society or of course, legislatures. With evergrowing awareness however, the public and regulators alike
have begun to scrutinize the predictive processes of this
innovative technology and their potential impacts.
As the applicable legal and regulatory landscapes evolve,
with the European AI Act at the forefront of such legal
developments, and society’s expectations increase, it is
without doubt that businesses will need to address and
implement ethical considerations when developing,
deploying and using AI systems. Put simply, ethical and
responsible, AI will no longer be a “nice to have” but instead
the non-negotiable end game.
So what should businesses do ‘now’? To succeed in the era of
digital transformation, businesses must begin to implement
governance programs that create a strong foundation
for current and future AI development and deployment,
charting a careful path that both enables innovation and
mitigates risks. In doing so, companies should take into
account their environmental, social, and governance (ESG)
initiatives, and build out comprehensive AI and data ethics
programs, embedding fairness, transparency, accountability,
sustainability and safety through every stage, from top
leadership to ground operations.
Additional
resources
Implementing appropriate data governance and effective
human oversight are essential components in ensuring ethical
and responsible use of AI within an organization. Clear lines
of reporting and management structures, appropriate policies
and procedures, ongoing training, thorough impact and risk
assessments, regular audits and ensuring that no aspect of
an organization operates in silo when it comes to the use of
AI are also all key in the development of a robust governance
ecosystem. Doing so will, in turn, create a future-looking
company culture grounded on ethical values and responsible
innovation.
As ever, companies need to monitor not only developing legal
requirements and codes of conduct, but will – for some time –
also need to make determinations on ethical and responsible
AI compliance structures even in circumstances where there
are gaps in legislation and regulation, to reduce business
risks and at least, keep pace with societal expectations, which
can vary significantly between developed and developing
countries. In developing countries, where regulatory
frameworks may take longer to be established, this vigilance is
particularly important to ensure responsible practices.
Authors
Bret Cohen
Partner
Washington, D.C.
Valerie Kenyon
Partner
London
Martin Pflueger
Partner
Munich
Vicki Kooner
Senior Associate
London
Ana Rumualdo
Senior Associate
Mexico City
Spotlight
Spotlight
Artificial Intelligence: World First Rules
Are Coming Soon – Are You Ready? (Part 1)
Artificial Intelligence: World First Rules
Are Coming Soon – Are You Ready? (Part 2)
Lorena Baltazar
Associate
London
