AI Audit - Beyond IT's Scope
Traditional IT audits fall short when it comes to safeguarding businesses in the age of AI. Why? Publicly accessible AI platforms offer users direct interactions with AI-driven solutions, often without oversight or control. This exposes companies to hidden risks like bias, misuse, and data privacy violations.
AI audits are essential for UK businesses:
- They go beyond IT systems: Publically accessible AI extends influence outside of IT infrastructure, requiring independent assessment and potential mitigation strategies for legal compliance and ethical decision-making in the use of AI.
- Unveiling hidden dangers: AI audits can expose biases within public AI platforms before they impact users or cause unforeseen consequences.
- Data protection & compliance: UK businesses need specialized expertise to navigate evolving regulations surrounding data protection, ensuring proper implementation for increased security and reduced risk.
By embracing a robust AI audit strategy, companies can unlock the true potential of AI while minimizing risk.
Hereafter are summaries of some of the predominent regulations that apply to the use of AI in UK organisations:
GDPR
Formally known as Regulation (EU) 2016/679, the General Data Protection Regulation (GDPR) governs the protection and privacy of personal data for individuals within the European Union. It sets stringent rules on how organisations must handle personal data—covering collection, storage, processing, and transfer—aiming to give individuals greater control over their personal information.
A breach of GDPR can lead to significant consequences, including fines of up to 4% of an organisation’s global annual turnover or €20 million (whichever is higher), along with reputational damage, potential legal proceedings, and the loss of customer trust.
A breach of GDPR can lead to significant consequences, including fines of up to 4% of an organisation’s global annual turnover or €20 million (whichever is higher), along with reputational damage, potential legal proceedings, and the loss of customer trust.
DPA
The Data Protection Act 2018 (DPA) is the UK’s primary legislation for regulating the use of personal data, effectively incorporating the EU’s General Data Protection Regulation (GDPR) standards into UK law. It sets out key principles for lawful data processing, grants rights to individuals regarding their personal information, and imposes obligations on organisations to protect and manage data responsibly.
A breach of the DPA 2018 can lead to:
A breach of the DPA 2018 can lead to:
- Financial Penalties: The Information Commissioner’s Office (ICO) can levy significant fines, reaching up to millions of pounds.
- Regulatory Action: Organisations may face enforcement notices or investigations from the ICO.
- Reputational Damage: High-profile breaches can harm public trust and stakeholder confidence.
AI Act
Formally titled the “Proposal for a Regulation Laying Down Harmonised Rules on Artificial Intelligence (Artificial Intelligence Act)”, this EU legislation aims to establish a unified framework for the development, use, and oversight of AI systems within the European Union. It focuses on risk-based categorisation—ranging from unacceptable to minimal risk—to ensure safety, transparency, and accountability in AI applications.
Key Concerns
Potential Impact for Breach
Non-compliance can lead to significant penalties, including fines of up to €30 million or 6% of annual worldwide turnover, whichever is higher. This places substantial legal and financial responsibility on organisations to meet the Act’s obligations or face severe consequences.
Key Concerns
- Identifying high-risk AI systems and setting mandatory requirements for data, documentation, and oversight
- Mandating transparency, especially when AI interacts directly with people
- Addressing potential biases and discrimination to uphold ethical standards
Potential Impact for Breach
Non-compliance can lead to significant penalties, including fines of up to €30 million or 6% of annual worldwide turnover, whichever is higher. This places substantial legal and financial responsibility on organisations to meet the Act’s obligations or face severe consequences.
Let Lanboss help with an AI Audit of your organisation … get in touch