Only 36% of corporate leaders believe AI policy will provide the necessary guardrails, according to BRG’s report on global AI regulation

As debates over how to regulate artificial intelligence heat up, new research reveals concerns about current and future policy effectiveness and lack of compliance readiness

EMERYVILLE, CA., June 20, 2024 /PRNewswire/ — According to BRG, in today’s rapidly evolving artificial intelligence (AI) regulatory environment, only about one-third of corporate leaders believe that current regulations are very effective and that future policies will provide the necessary safeguards Global Artificial Intelligence Regulation Reportreleased today.

Drawing on survey responses from more than 200 corporate leaders and legal executives in a variety of industries around the world, as well as in-depth interviews with BRG executives, lawyers and experts, a new report assesses the current state of AI regulation and the challenges facing organizations face in terms of compliance, and what key stakeholders consider most important for developing an effective AI policy. The report includes data breakdowns across key industries (retail and consumer goods, technology and financial services), regions (North America; Europe, Near East AND Africa; and Asia-Pacific) and roles (lawyers and management).

Additionally, the report discusses implications for the U.S. healthcare sector, building on findings from the latest BRG report AI and the future of healthcare report.

Organizations lack confidence in their readiness to comply with regulations

In today’s uncertain regulatory landscape – where misuse of AI poses significant regulatory, litigation and reputational risks – just four in 10 respondents are highly confident that their organization will be able to comply with applicable regulations and guidelines. When it comes to internal safeguards to promote the responsible and effective development and use of AI, most respondents – especially those in the retail and consumer goods sectors – have not yet put any in place.

Lawyers as well as respondents from North America overall, they are particularly skeptical about the effectiveness of current and future AI regulation. But uncertainty also creates opportunities.

“We are increasingly seeing a disconnect between what outside legal counsel is recommending and what management is open to when it comes to AI policies and procedures,” he says Amy Worley, managing director and deputy general counsel at BRG. “Good advisors can tell Yesthere is high regulatory uncertainty, AND Where there is uncertainty, there is value.”

Future AI policy priorities

Respondents generally agreed that the top three future areas of focus for AI regulation are data integrity, security, and accuracy/reliability. However, priorities differ when the survey results are broken down by region and industry. Management wants the policy to be more flexible/flexible and transparent/explained, while lawyers are most concerned about whether it will be enforceable. Respondents in the technology and financial services industries also prioritize agility/flexibility, while respondents in the retail and consumer goods industries favor stringency.

Everyone wants comprehensiveness, although it may not be that simple.

“Creating broad, comprehensive guidelines may be more difficult than people think,” he says Richard Finkelman, managing director at BRG. “For example, there is already a gap between the US and the EU on AI regulation and ethics, and it is getting bigger, not smaller.”

The report also provides a thorough overview of current AI policy, from the recently adopted EU Artificial Intelligence Act onwards decentralized a more business-friendly approach by the Association of Southeast Asian Nations A guide to AI governance and ethics. It also discusses the growing problems of AI-generated fake ID and the risk of non-compliance.

The full report can be downloaded at thinkbrg.com/AIregulation.

About BRG
Berkeley Research Group, LLC is a global consulting firm that helps leading organizations advance in three key areas: economics, litigation and investigations; buisness finance; and performance improvement and consulting. Headquartered in California with offices around the world, we are an integrated group of experts, industry leaders, scientists, data analysts and specialists working across borders and disciplines. We leverage our collective knowledge to deliver the inspiring insights and actionable strategies our clients need to get ahead of what’s next. Visit thinkbrg.com to learn more.

SOURCE Berkeley Research Group