McKinsey Article Addresses AI Risk, Regulatory Response

A McKinsey article published at the end of December addresses the rapid advancement of generative artificial intelligence (AI) and the importance of regulatory oversight to prevent inherent risks in its development. The article notes “there are concerns about a potential lack of transparency in the functioning of gen AI systems, the data used to train them, issues of bias and fairness, potential intellectual property infringements, possible privacy violations, third-party risk, as well as security concerns.” The article notes there are common themes between regulatory structures currently proposed including: Transparency, Oversight, Accountability, Nondiscrimination, Technical Robustness and Safety, and Privacy, among others. Additionally, the article emphasizes the role that developers of generative AI can play in advocating for responsible regulation around the technology and its use. McKinsey breaks out four preemptive actions that companies developing in this space can focus on to get ahead of looking changes: Transparency in Models; Focus on Oversight Governance Structures; Data and Technology Management; and Educating Individuals. The authors’ note that “[d]espite the rapidly changing regulatory landscape, which is not yet aligned across geographies and sectors and may feel unpredictable, there are tangible benefits for organizations that improve how they provide and use AI now.” 

Click here to read the McKinsey report on generative AI risk.