In the wake of the AI EU Act last month, Jane Lawrie, global head of corporate affairs at KPMG International, explores how to navigate the new technology.

AI is changing the world. That should not be seen as a new or thought-provoking statement. Whether you are a lover or a hater of artificial intelligence (or most likely somewhere in-between) it is almost impossible to deny the impact that AI, machine learning and big data can have on businesses and on our everyday lives.

Add to that the decades of the relatively ‘unseen’ use of AI in businesses, the burgeoning use of mainstream generative AI tools such as ChatGPT or Copilot and the technology behind the development of deep fakes, and you can see why governments around the world are hurrying to regulate this ‘new’ environment. That will not be easy. 

The EU AI Act came into force at on 1 August this year. The act took three years to develop, which in the world of regulation is not slow. But can traditional regulation really cope with a science that is, in its very nature, changing and learning every day, every minute with every new piece of data? And, with different political and economic agendas competing around the world, can geographically focused regulation really work in a space that doesn’t respect borders?

For corporate affairs professionals in the boardroom, where our role is to help shape reputation and support business priorities, a question we should be seeking to address is how we can be bold, fast and responsible when adopting AI. This was a question I asked recently at a panel in Edinburgh where I was joined by representatives from the investment community and AI experts from Signal AI and Microsoft. 

Bold: pushing the boundaries of innovation

Possibly one of the most exciting aspects of discriminative and generative AI is its ability to think big; to apply its power to some of the world’s most complex problems. There is no doubt that AI is already having a positive impact on our daily lives and across many industries.  Steven Grier, director of devolved government from Microsoft in the UK, shared the example of how an artificial intelligence breast screening solution called Mia, currently being used by NHS Grampian, is helping doctors to find an additional 12% more cancers than in routine practice. A remarkable example of how AI has the potential to make a hugely positive impact.

For any business, innovation is key for progress. The challenge is how to balance this against the risk of AI making a misstep. Or, indeed, against using AI to push the boundaries beyond what a fair society can tolerate.

Fast: managing speed to market

The pace of change in AI is exponential. So, to have any sort of competitive advantage an organisation needs to move fast.  This requires the best talent and the best tech.  It also necessitates a new approach to decision making that is responsive and flexible, being able to move quickly to adopt new thinking and new solutions. There is no doubt that many organisations around the world are looking at their processes differently. 

What does the future of talent look like – will people all need to have a base level of understanding of using AI? My guess is yes - as my colleague from KPMG’s US firm, Samantha Gloede put it, “Think back to the adoption of the internet and how it developed from something that was being used and explored by only a few to something that is now available in most corners of the world and is ubiquitous in our everyday activities”. Recognising the ever-growing importance of AI, at KPMG we recently launched ‘24 hours of AI', an ongoing series of events and workshops across KPMG’s global network designed to help our people learn and develop the skills they need to apply AI in their everyday work, and to deliver new approaches to clients in a responsible and trusted way.

What level of investment should a business be making in tech? And, importantly, what are the new governance structures that should be in place to help protect the business while moving at speed? Which brings us to the third part of the triumvirate: responsible.

Responsible: ensuring ethical decision making and protecting reputation

Speaking as a business leader who has the corporate affairs brief, my starting point is inevitably responsibility. Our job is to help businesses thrive, respecting the needs of our people, clients, and ultimately society. AI presents a whole new set of considerations. To address this, KPMG has created the Trusted AI framework which helps KPMG professionals and the clients they serve to work together to take an ethical, responsible and holistic approach, considering data security, transparency and accountability to name a few. We also include sustainability. 

Undoubtedly one of the emerging topics, and one that was discussed during a roundtable at the World Economic Forum in Davos this year, is the fact that AI and the supporting data industry are very resource hungry, with a growing demand for power and water that continues to attract interest as the demand for low carbon energy increases across society.

There is a whole new world of issues that should be considered as the world continues to embrace AI, but this should not put us off. In fact, we can make responsible AI our guiding light. While in Edinburgh, David Benigson, CEO and founder of the AI-powered media intelligence platform Signal AI, shared his view that a responsible implementation of AI is not just as important as a bold and fast one, but it is likely to be a key differentiator.  We also discussed the fact that governance around AI should become more explicit in future boardroom structures, with boards already starting to supplement their expertise so they are well prepared for future decision-making.  

In short, and as was collectively concluded by both the panel and the delegates in Edinburgh, "yes", AI can be bold, fast and responsible but perhaps not in equal measure.  The panel was united in the belief that you must be bold in your ambition, hold responsibility as your north star, and move as fast as is possible to respect the emerging risks presented. 

Our role is to navigate this changing landscape. Embrace the possibility but remain committed to doing what we do in such a responsible, ethical way that we would be happy to defend it to our friends and our family – today and in the future.