AI Policies: Managing AI Risks within the Organisation

AI is increasingly becoming integral to operations of organisations with use ranging from improving routine processes to supporting core business functions and, in some cases, high-stakes decisions. While AI tools offer significant efficiencies, their use also creates risks, including breaches of confidentiality, data protection concerns, uncertainty around intellectual property ownership and non-compliance with regulatory requirements. An AI policy is therefore an important first step in defining how AI may be used within an organisation and the safeguards that must apply.

At present, India does not have a law governing use of AI. However, in this article we discuss how AI adoption and use within an organisation is already subject to existing laws and regulatory requirements, including those relating to data protection, cybersecurity, intellectual property, advertising, consumer protection and other sector-specific aspects. Further, sectoral regulators have begun actively examining the use of AI within regulated industries and have issued guidance in some or the other form on usage of AI. An AI policy can help organisations

translate such guidance into clear internal rules.

In this article, we discuss when businesses should consider adopting an AI policy and what such policies should cover.

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