Artificial Intelligence (AI) is causing many changes in the business world. According to Statista, the global AI market is expected to grow twentyfold to 1.9 billion by 2030, up from just $142,000 in 2022. While the boom of AI has sparked so many innovative opportunities, it has also triggered many risks and ethical issues. Thankfully, governments across the globe are increasingly focused on strengthening regulatory and protective frameworks for businesses navigating this advanced technology.

First, let's understand why these regulations are a hot topic. From bias in AI-driven recruitment systems to increased chances of cyber attacks in autonomous vehicles, the growth of AI is a Pandora's box containing potential drawbacks.

Over 60% of companies are experimenting with AI, so how are these organizations protected?

Data protection and privacy

Data is the backbone of AI systems, and privacy concerns are at an all-time high. Implementing the General Data Protection Regulation (GDPR) by the European Union in 2018 introduced strict rules for collecting, storing, and using personal data. Fast forward to 2023, and more countries have emulated GDPR-style regulations, and violators face big fines.

Businesses are now more cautious, transforming their data management strategies to comply with data protection and privacy regulations, ensuring consumer trust, and avoiding penalties.

Combating AI bias

AI systems can unintentionally inherit human biases as they learn from past data. These biases can lead to unfair outcomes in hiring, credit scoring, and even medical diagnosis. To prevent these discriminatory practices, governments worldwide are advancing regulations to promote transparency in AI decision-making.

In 2023, businesses will benefit from expert guidance and regulatory measures to refine their AI algorithms, reduce bias, and maintain a level playing field for all stakeholders. For instance, companies like IBM have open-sourced AI bias detection tools to help developers create fair AI models.

Many official guidelines and initiatives have been created in response as well. The AI Ethics Guidelines published by the European Commission emphasized the need for fairness and transparency in AI systems. At the same time, the US has established the National Artificial Intelligence Initiative to monitor and coordinate federal AI policies for a more just AI-driven society.

Interpreting the AI black box: Making AI explainable

AI models can sometimes be difficult to interpret, even for developers. People often refer to the lack of transparency and accountability in some AI systems as the AI "black box," where the decision-making process is hard to understand. Transparency is vital when it affects big decisions in the finance, healthcare, and criminal justice industries.

In response, regulatory authorities have introduced guidelines, such as the European Commission's proposal for an AI regulatory framework, requiring detailed documentation of AI models in high-risk sectors. As a result, companies in 2023 will invest more in research and technology to make AI models more explainable, contributing to a more understandable and accountable AI ecosystem.

Reinforcing cybersecurity

AI adoption isn't just changing how businesses operate; it's transforming the cyber threats they face. The increase in interconnected devices and AI-driven systems has led to greater vulnerabilities and new pathways for cyberattacks.

To safeguard against potential AI-targeted attacks, companies are now required by many cybersecurity regulations to implement robust security measures, from regular vulnerability assessments to end-to-end encryption. Gartner expects global information security and risk management spending to exceed $188 billion in 2023.

Wrk

As businesses continue to adapt to the AI landscape and address regulatory concerns, they'll want to have the right tools by their side. Wrk provides a streamlined platform to easily integrate AI into your business processes, helping you navigate the complex world of AI and comply with regulations popping up left, right, and center.

Learn more about how Wrk's AI solutions can help businesses of all sizes create sophisticated workflows. You can fully customize workflows for every process with a no-code, simple building block solution.

Start your free trial of Wrk today and experience the future of AI-driven business solutions.