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However, the growing imperative to regulate AI has spawned a multifaceted patchwork of approaches globally, complicating matters for businesses already grappling with new AI risks. Consequently, the realm of AI governance is still largely uncharted territory for corporations: boardrooms and C-suites have yet to formally consider and regulate AI ethics and values, leaving businesses vulnerable to reputational risks and potential regulatory penalties. Moreover, as generative AI technologies continue to evolve in new and unpredictable ways, many of the underlying assumptions made by these draft regulations and nascent corporate governance approaches are not always valid. For instance, traditional AI systems have been designed to perform specific tasks, which allows for the implementation of targeted, sector-specific regulations and governance. In contrast, users can leverage generative AI to produce text, images, speech and even music across a broad range of domains and use cases, making it difficult to establish a one-size-fits-all framework.
Organisations' exposure to risk is intensifying, underscoring the urgent need to prepare for future AI regulation and develop robust governance frameworks. So, how can companies navigate this increasingly dynamic technology and regulatory landscape and what steps can business leaders take to establish effective AI governance frameworks? What are the critical questions organisations should ask to brace themselves for the future of AI regulation and the ethical challenges it brings?
In this article, we will delve into the world of AI regulations and explore the challenges for organisations when creating effective AI governance frameworks. We will also provide key insights on the steps businesses need to take to ensure they are ready for tomorrow's regulation whilst accounting for the distinctive nature of generative AI.