Many firms ‘unclear on AI obligations’
A report from law firm Arthur Cox has found that 25% of Irish companies are unclear about their obligations under landmark EU legislation on AI.
A survey carried out by the firm also shows that, while 97% of firms are already using the technology, only 10% describe it as ‘fundamental’ to their operations.
The Arthur Cox Governing AI report surveyed professionals in IT, data, risk, compliance, legal, and senior executive roles – those responsible for making decisions about how AI is implemented, governed, and scaled.
It has been published weeks before further key provisions of the EU’s AI Act come into force.
‘Deployer’ or ‘provider’
Arthur Cox says that the report captures a growing appetite to use AI but also points to uneven levels of preparedness when it comes to oversight, compliance, and long-term planning.
One-quarter of respondents are not clear on whether their use of AI means they may be classified as a ‘provider’ of an AI system, while another 38% have yet to assign clear responsibility for AI oversight within their leadership teams.
‘Providers’, who design and build AI systems, face stricter obligations under the EU act than ‘deployers’, who implement off-the-shelf solutions. In the Arthur Cox survey, just over 60% defined their organisation as a ‘deployer’.
Resources
According to the survey data governance and AI-specific controls (both 19%) are viewed as the areas that will require the most resources to ensure compliance, followed closely by risk management and reporting requirements (both 16%).
Data protection was named the top challenge involved in implementing AI (17%), with AI literacy the second-highest concern (13%).
The EU continues to dominate the regulatory agenda, with 76% of respondents saying that EU frameworks are more strategically important than those being developed in the US or China.
Call for ‘transparent structures’
Colin Rooney (Arthur Cox partner and head of technology and innovation) said that the findings showed that many organisations remained unclear on what steps they needed to take under the EU act.
He urged business to prioritise legal clarity and strategic planning, given the “complexity” of the new obligations.
Olivia Mullooly (partner, technology and innovation) said: “While companies are quick to explore and adopt AI capabilities, they do not always have a clear vision for its use in the organisation, and there is a governance gap to be addressed in developing risk frameworks and structured oversight of its use.”
She said that boards and senior management teams, when beginning to use AI tools, should establish transparent structures from the outset.