Categories
Daily Compliance News

Daily Compliance News: June 26, 2023 – The Siloed in China Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

  • Is the Supreme Court corrupt? (WaPo)
  • AI guardrails coming. (NYT)
  • Over sharing at the office. (FT)
  • Companies try to silo off business in China. (WSJ)
Categories
Daily Compliance News

Daily Compliance News: June 12, 2023 – The Nicola Sturgeon Arrested Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition:

  • Kentucky company sanctioned for Chinese ties. (WSJ)
  • UK PM wants to be the leader in AI. (Bloomberg)
  • Nicola Sturgeon was arrested in a corruption probe. (Euronews)
  • Law firms are kicking the can on hiring. (Reuters)
Categories
Principled Podcast

Principled Podcast – S9 E16 – What Does Responsible AI and Machine Learning Look Like for Business Leaders?

What you’ll learn on this podcast episode

Generative AI is on the agenda of almost every company right now. Business leaders are grappling with how to use it in products, services, and in workflows. Managers and their teams are wondering if artificial intelligence is coming for their jobs. Regulators are trying to wrap their arms around it as its potential for misuse is high. If you’re concerned about corporate ethics, culture, and compliance, what is your role in the responsible development and deployment of AI-oriented business initiatives? On the Principled Podcast, host Jen Üner talks about responsible AI with Dr. Seth Dobrin, Ph.D. and President of the Responsible AI Institute. Listen in as the two unpack what “responsible AI” means and how business leaders can move forward in this rapidly changing landscape that is sure as monumental a shift as the invention of the Internet. 

 Guest: Seth Dobrin, Ph.D.

Seth Dobrin – Grayscale

Dr. Seth Dobrin is a leading expert in artificial intelligence (AI) and its application to business. He is the president of the Responsible AI Institute. Previously, he was IBM’s global chief AI officer, where he led the company’s AI strategy. He has also held senior positions at other Fortune 500 companies where he used data and AI to create billions of dollars of top and bottom-line value.

Dr. Dobrin is a sought-after speaker and advisor on AI. He has been featured in major publications such as The Wall Street Journal, Forbes, The New York Times, and major broadcast networks such as the BBC, PBS, and NPR. He has also spoken at numerous conferences and events around the world head-lining top-tier events such as IAA Global 2022, AI Week Rmini, TNW Conference 2022, Reuters Momentum 2023, AIMed Global 2023, Total Retail Tech 2023, and many others.

Dr. Dobrin is a passionate advocate for the responsible use of AI. He believes that AI has the potential to solve some of the world’s most pressing problems, but that it is essential to ensure that AI is used in a way that benefits all of humanity.  Dr. Dobrin holds a Ph.D. Molecular and Statistical Genetics from Arizona State University. 

Here are some of his most notable achievements: 

  • DataIQ 100 USA 2024 
  • Corinium’s Top 100 Leaders in Data & Analytics 2022. 
  • AI Innovator of the Year by AIconics in 2021. 
  • “100 Most Influential People in AI” by Onalytica. 
  • “100 Most Influential People in Big Data” by DataQuest. 
  • “Top 50 AI Influencers” by Analytics India Magazine. 
  • “Top 100 AI Thought Leaders” by AI Business Review. 
  • “Top 100 AI Influencers in Europe” by Datanami. 

Dr. Dobrin is a visionary leader who is shaping the future of AI. He is a passionate advocate for the responsible use of AI, and he is committed to using AI to solve some of the world’s most pressing problems. Dr. Dobrin is a true pioneer in the field of AI. He is using his expertise and passion to make a positive impact on the world. 

Host: Jen Üner

Episode_Card_Jen_Uner_2

Jen Üner is the Strategic Communications Director for LRN, where she captains programs for both internal and external audiences. She has an insatiable curiosity and an overdeveloped sense of right and wrong which she challenges each day through her study of ethics, compliance, and the value of values-based behavior in corporate governance. Prior to joining LRN, Jen led marketing communications for innovative technology companies operating in Europe and the US, and for media and marketplaces in California. She has won recognition for her work in brand development and experiential design, earned placements in leading news publications, and hosted a closing bell ceremony of the NASDAQ in honor of the California fashion industry as a founder of the LA Fashion Awards. Jen holds a B.A. degree from Claremont McKenna College.

 

 

Categories
2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 6 – The Risk of Distributors

What happens when two top compliance commentators get together? They talk compliance, of course. Join Tom Fox and Kristy Grant-Hart in their podcast, 2 Gurus Talk Compliance, as they dive into hot compliance topics. This episode covers the potential crisis with due diligence in China, highlights from the Compliance Week 2023 National Conference, and a recent fraud case. They also discuss strategies for managing distributor risk, stakeholder management, and the need for AI regulation. With its unique insights and engaging storytelling, this podcast is a must-listen for anyone in compliance. Take advantage of the latest episode of 2 Gurus Talk Compliance, and stay ahead of the curve!

Highlights Include:

·      Philips FCPA Enforcement Action and Distributor Risk Management

·      Stakeholder Strategy for Ethical Business Practices

·      Risks of Due Diligence in China for US Companies

·      Risks of Conducting Investigations in China

·      Quantitative skills, AI regulation, and challenges

·      Tech Hearings & Messaging Compliance Reform

·      The Problems with Ephemeral Messaging and Hot Desking

·      The Myth of Informal Office Collaboration

·      IRS Scam Calls and Sanctions Compliance

 Resources 

  1. Board governance and Strategy in a Changing Economic Landscape.
  2. How to Create a Stakeholder Strategy
  3. Messaging crackdown
  4. Corporate Crime and National Security
  5. Philips pays SEC $62 million to resolve China FCPA violations
  6. U.S. Companies in China Worry Due Diligence Will End in Spy Dramas
  7. OpenAI Founder Calls for the Global Regulation of Artificial Intelligence
  8. Why Employees Hate Hot-Desking
  9. Travis County cautions of ongoing jury duty fraud calls

Connect with Kristy Grant-Hart on LinkedIn

Spark Consulting

Tom

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Compliance and AI

Compliance and AI – Vinay Kumar on the Business Uses for AI in Regulated Industries

In this episode, Tom Fox interviews Vinay Kumar, the founder, and CEO of Arya.ai. Vinay discusses the importance of regulations in AI to prevent unethical use in business, including the potential dangers of superintelligence. Vinay emphasizes the need for responsible and ethical use of AI while discussing how Arya.ai simplifies the deployment of responsible and safe AI in the banking, finance, and insurance industries. Vinay also explains how a verticalized AI cloud with observability layers can provide value to the industry by ensuring transparency, auditability, monitoring, and safety of model output to protect customer and company interests.

Don’t miss this informative podcast that will enlighten you on the proper use of AI in business and the importance of regulations.

Key Highlights:

  • ML observability and founding Arya.ai
  • From Stem Research to BFSI: Pivoting AI Development
  • AI solutions for the insurance industry
  • Importance of ML observability layer
  • Challenges of Health Claims Automation
  • Ethical Concerns in AI Usage for Business

 Key Quote:

“We thought we were solving a fundamental problem, which is simplifying the information interaction problem, and that can only happen when I spend my time more effectively on the topic rather than solving these on-ground tasks.”

Resources

Vinay Kumar on LinkedIn

Arya.ai

Tom Fox

Instagram

Facebook

YouTube

Twitter

Categories
Uncategorized

Farewell to Jim Brown: Compliance and the Regulation of AI

Jim Brown died last week. Although I just saw Brown at the end of his career and at the start of my NFL fandom, he was the best player I ever saw. He is certainly the greatest running back of all-time, even if others have exceeded his yards gained the hard way, on the ground. A multi-sport All-American at Syracuse University, in both football and lacrosse, (and in the HOF for both sports) Brown played for the Cleveland Browns under legendary coach, Paul Brown. According to his New York Times (NYT) obituary, “Brown was voted football’s greatest player of the 20th century by a six-member panel of experts assembled by The Associated Press in 1999. A panel of 85 experts selected by NFL Films in 2010 placed him No. 2 all time behind the wide receiver Jerry Rice of the San Francisco 49ers.” The legendary New York Giants linebacker Sam Huff said of Brown, ““All you can do is grab, hold, hang on and wait for help.”

Brown was equally famous for his life after football where he was an action movie star, most notably (for me) in The Dirty Dozen. More importantly he was a voice of social conscience as well. According to the NYT, “he founded the Negro Industrial and Economic Union (later known as the Black Economic Union) as a vehicle to create jobs. It facilitated loans to Black businessmen in poor areas — what he called Green Power — reflecting his long-held belief that economic self-sufficiency held more promise than mass protests.” He later founded “the Amer-I-Can Foundation to teach basic life skills to gang members and prisoners, mainly in California, and steer them away from violence. The foundation expanded nationally and remains active.”

But I will always remember the highlights of the greatest running back ever; breaking tackles and outrunning all defenders to daylight and the end zone.

The Call For Regulation

Brown’s social advocacy informs today’s post about the coming regulation of AI. Last week, we were all treated to the spectacle (yet again) of another tech entrepreneur testifying before Congress, asking them to do their job which they seem to be incapable of doing any longer—passing legislation. Writing the Harvard Business Review, in an article entitled “Who Is Going to Regulate AI? Blair Levin and Larry Downes noted that “OpenAI chief executive Sam Altman said it was time for regulators to start setting limits on powerful AI systems.” They then quoted from his testimony for the following “As this technology advances we understand that people are anxious about how it could change the way we live. We are too…If this technology goes wrong, it can go quite wrong, [with] significant harm to the world.” Altman agreed with lawmakers that government oversight will be critical to mitigating the risks.

 Who Will Regulate AI

There is no shortage of potential government actors who might step in to regulate AI. As the authors note, “First, there’s Congress, where Senate Majority Leader Chuck Schumer is calling for preemptive legislation to establish regulatory “guardrails” on AI products and services. The guardrails focus on user transparency, government reporting, and “aligning these systems with American values and ensuring that AI developers deliver on their promise to create a better world.” The vagueness of this proposal, however, isn’t promising.”

Next is the Biden Administration, which created a White House blueprint for an AI Bill of Rights, last October. Here the authors said, “The blueprint is similarly general, calling for developers to ensure “safe and effective” systems that don’t discriminate or violate expectations of privacy and that explain when a user is engaging with an automated system and offer human “fallbacks” for users who request them.”

Next at the Department of Commerce, the National Telecommunications and Information Administration (NTIA) has begun to explore the “usefulness of audits and certifications for AI systems. The agency has requested comments on dozens of questions about accountability for AI systems, including whether, when, how, and by whom new applications should be assessed, certified, or audited, and what kind of criteria to include in these reviews.”

Federal Trade Commission (FTC) Chair Lina Kahn is looking at AI regulation through an anti-competitive and consumer protection lens “in the direction of the new technology. Kahn speculates that AI could exacerbate existing problems in tech, including “collusion, monopolization, mergers, price discrimination, and unfair methods of competition.” Generative AI, the FTC chair also believes, “risks turbocharging fraud” with its ability to create false but convincing content.” Khan has also express concern of the inherent bias in AI and a discriminatory impact.

Finally, the Department of Commerce is considering creating “a sustainable certification process, or the political clout to get the tech industry to support NTIA’s efforts. Further, as the Department acknowledges, its inquiry is only part of the larger White House effort to create a trusted environment for AI services, an objective that would require previously unseen levels of coordination and cooperation across numerous government silos.”

What Should Compliance Do?

I certainly believe there will be  combination of government action, as the authors note in the “legislative, regulatory, or judicial’ sphere will be a “balancing act of maximizing the value of AI while minimizing its potential harm to the economy or society more broadly.” But as is well known, law advances incrementally while technology evolves exponentially. I agree with the authors that compliance professionals “should take their cue from the Department of Commerce’s ongoing initiative, and start to develop nongovernmental regulators, audits, and certification processes that identify and provide market incentives to purchase ethical and trusted AI products and services, making clear which applications are and are not reliable.”

Categories
Daily Compliance News

Daily Compliance News: May 18, 2023 – The Dog Ate My Homework Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition:

  • SVB CEO ‘truly sorry’ bank failed. (NYT)
  • Open AI CEO wants regulation.  (NYT)
  • Former French President Sarkozy loses corruption appeal. (Politico)
  • GOP loses Biden, the whistleblower.  (Newsweek)
Categories
Daily Compliance News

Daily Compliance News: May 16, 2023-the AI and Compliance Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance related stories to start your day. Sit back, enjoy a cup of morning coffee and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership or general interest for the compliance professional.

Stories Include

  • Using AI to manage risk. (InsideBigData)
  • How will AI change the workplace. (WSJ)
  • Using AI to manage regulatory risk frameworks. (PYMNTS)
  • Will AI help compliance? (Forbes)
Categories
2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 5, The Taylor Swift Edition

What happens when two top compliance commentators get together? They talk compliance, of course. Join Tom Fox and Kristy Grant-Hart in their podcast, 2 Gurus Talk Compliance, as they tackle topics on behavior economics, OFAC settlement lessons, the importance of the user experience in compliance policy creation, and more. They also discuss incorporating behavioral sciences into compliance strategies and the exciting changes in compliance consulting services. With their expertise, they share insights on how data, behavioral science, and innovative approaches can improve compliance programs, business processes, and profitability.

Listen as they provide valuable insights on how to understand culture by starting a dialogue and the importance of finding someone to give a narrative. Lastly, they discuss the challenge of bribery and corruption and the need for compliance professionals to be innovative, accept failures, and be comfortable with experimentation. Take advantage of this exciting and informative podcast episode from two renowned compliance experts, Tom Fox, and Kristy Grant-Hart.

Highlights Include:

  • Document Geeks rejoice
  • BAT settlement from the Caremark/McDonalds perspective
  • New Directions for Cybersecurity
  • What is a corrupt payment?
  • Rachel Carson and leadership
  • Compliance industry growth
  • What’s on the mind of CCOs
  • Taylor Swift and compliance
  • Using AI to generate meeting notes

 Resources 

1.     New Direction for Cybersecurity.

2.     BAT export control settlement-$767MM is just the start of the costs.

3.     What is the profile of a corrupt payment?

4.     Rachel Carson and Leadership

5.     The 24-Hour Rule by Adrienne Bellehumeur.

6.     Three Graphs Explain the Compliance Industry’s Growth

7.     What is top-of-mind with CCO’s?

8.     8 Handy Tools to Get AI-Generated Meeting Notes

9.     Queen of Due Diligence

Connect with Kristy Grant-Hart on LinkedIn

Spark Consulting

Tom 

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Compliance Week Conference Podcast

Compliance Week 2023 Speaker Series – Jisha Dymond on Managing Ethical AI Risk

In this episode of the Compliance Week 2023 Speaker Preview Podcasts series, Jisha Dymond discusses her panel at Compliance Week 2023, “The Role of Corporate Compliance Programs in Managing Ethical AI Risk.”

Join Jisha and her fellow panelists as they discuss the following:

  • Understanding the current Ethical AI regulatory environment;
  • Examining how corporate compliance teams are equipped with the infrastructure necessary to implement programs to manage risk around new regulatory regimes such as risk assessments, policies, procedures, monitoring, and testing; and
  • Exploring whether translating an Ethical AI regulatory compliance model into a corporate compliance framework is impossible or inevitable.

I hope you can join me at Compliance Week 2023. This year’s event will be May 15-17 at the JW Marriott in Washington, DC. The line-up of this year’s event is simply first-rate, with some of the top ethics and compliance practitioners around.

Gain insights and make connections at the industry’s premier cross-industry national compliance event offering knowledge-packed, accredited sessions and take-home advice from the most influential leaders in the compliance community. Back for its 18th year, compliance, ethics, legal, and audit professionals will gather safely face-to-face to benchmark best practices and gain the latest tactics and strategies to enhance their compliance programs. And many others to:

  • Network with your peers, including C-suite executives, legal professionals, HR leaders, and ethics and compliance visionaries.
  • Hear from 75+ respected cross-industry practitioners who are CEOs, CCOs, regulators, federal officials, and practitioners to help inform and shape the strategic direction of your enterprise risk management program.
  • Hear directly from the two SEC Commissioners, gain insights into the agency’s enforcement areas, and walk away with guidance on remaining compliant within emerging areas such as ESG disclosure, third-party risk management, cybersecurity, cryptocurrency, and more.
  • Bring actionable takeaways from your program from various session types, including ESG, Human Trafficking, Board obligations, and many others, for you to listen, learn and share.
  • Compliance Week aims to arm you with information, strategy, and tactics to transform your organization and career by connecting ethics to business performance through process augmentation and data visualization.

For information on the event, click here. Listeners of this podcast will receive a discount of $200 by using code TF200 on the link here.