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AI in Compliance Week: Part 1 – Transforming Risk Management

Compliance professionals face increasing pressures to adapt and innovate in today’s rapidly evolving landscape. On a recent episode of Innovation in Compliance, I visited with Matt Lowe, the Chief Strategy Officer at MasterControl. We discussed how AI is revolutionizing quality management in the life sciences industry. With a background in engineering and extensive experience at MasterControl, Matt offered a unique perspective on integrating AI into compliance processes. We deeply explored how AI is poised to transform the compliance field.

Generative AI is being utilized to create comprehension-based testing automatically. This innovation significantly reduces the time required for compliance-focused training, transforming a process that once took hours into a task completed in minutes. This approach resonates with the broader compliance community, where efficiency and accuracy are paramount. By automating the generation of training materials, AI can help ensure that employees are adequately trained on your internal policies and procedures, helping your organization maintain compliance with regulatory standards.

Perhaps one of AI’s most exciting promises is the shift from reactive to predictive and preventative compliance. Traditionally, risk management has focused on identifying and correcting issues after they occur. However, AI offers the potential to predict and prevent problems before they arise. By analyzing vast amounts of data, AI can identify patterns and anomalies, allowing organizations to address potential issues proactively.

This predictive capability is precious in the life sciences industry, where the stakes are high. Ensuring the highest quality products can directly impact patient safety and regulatory compliance. Leveraging AI to predict and prevent quality issues represents a transformative shift in managing compliance.

When implementing AI in compliance, you should take a risk-based approach. This involves starting with low-risk AI applications to gain confidence in the technology before moving on to more critical areas. For instance, generating training exams is a low-risk application that can still deliver significant benefits. As organizations become more comfortable with AI, they can explore its use in more complex and higher-risk areas.

This cautious approach aligns with the principles of compliance, where assessing and managing risk is a fundamental aspect of the profession. By gradually incorporating AI, organizations can mitigate potential risks while harnessing the technology’s power to enhance compliance processes.

While AI offers tremendous potential, we both stressed the importance of the “Human in the Loop” approach. AI can provide valuable insights and automate processes, but human oversight remains crucial. This is particularly important in life sciences, where the consequences of errors can be severe. Ensuring that humans review and validate AI-generated outputs helps maintain the accuracy and reliability of compliance efforts. This “Human in the Loop” reflects a balanced approach to AI integration. By combining the strengths of AI with human expertise, organizations can achieve a more robust and effective compliance framework.

Lowe shared his vision for the future of AI in compliance. He envisions a world where AI becomes integral to software applications, transforming how professionals interact with technology. Instead of navigating complex interfaces, users will engage with AI-driven chatbots that provide instant answers and guidance. This shift will enable compliance professionals to access the information they need more efficiently and effectively. AI has the potential to identify gaps in compliance frameworks and suggest appropriate controls. This capability can significantly enhance the effectiveness of compliance programs by ensuring that organizations are always prepared for audits and regulatory scrutiny.

As AI continues to evolve, collaboration within the industry will be essential. Lowe mentioned initiatives like the Convention for Healthcare AI, where industry players and regulators discuss the ethical implications and best practices for AI use. Such collaborations are vital to ensure that AI is leveraged responsibly and ethically, particularly in industries like life sciences, where the impact on human health is significant.

AI has transformative potential for compliance. By automating routine tasks, shifting from reactive to predictive compliance, and adopting a risk-based approach, AI can significantly enhance the efficiency and effectiveness of compliance programs. However, the human element remains crucial to ensure accuracy and reliability. As the industry continues to explore and embrace AI, collaboration and ethical considerations will play a vital role in shaping the future of compliance. By harnessing the power of AI, organizations can stay ahead of regulatory requirements, improve product quality, and ultimately protect patient safety. The journey towards AI-driven compliance is just beginning, and the possibilities are exciting and profound.

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2 Gurus Talk Compliance

2 Gurus Talk Compliance: Episode 30 — Make a Plan

What happens when two top compliance commentators get together? They talk about compliance, of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode!

In this episode, Kristy and Tom discuss various pressing issues and developments in compliance. Topics include the introduction of a new regulator in Europe, concerns of AI employees about retaliation for raising alarms on potential threats, California’s new workplace violence compliance requirements, and unusual attempts to use live animals as payment in Florida.

The episode also highlights the significance of the Women in Compliance conference, the importance of crisis communication strategies, and the recent extension of the sanctions statute of limitations by the U.S. government. The conversation also covers networking for job seekers and the implications of the newly formed European Financial Crime Agency. The episode concludes with a bizarre payment method by our good friend, Florida Man.

Highlights Include:

 Resources:

Kristy Grant-Hart on LinkedIn

Spark Consulting

Tom

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LinkedIn

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Innovation in Compliance

Innovation in Compliance: Harnessing AI in Life Sciences with Matt Lowe from MasterControl

Innovation comes in many forms, and compliance professionals need to not only be ready for it but also embrace it.

Curious about Compliance as a Service and AI integration? If so, this episode is for you as Tom Fox interviews Matt Lowe, Chief Strategy Officer at MasterControl.

Matt shares his professional background, details MasterControl’s role in the quality management and life sciences markets, and discusses the company’s incorporation of AI in their software solutions.

The conversation delves into how AI is transforming compliance and quality assurance in the life sciences, the benefits and challenges of implementing AI, and the future outlook of AI in the industry.

Matt also touches on risk-based approaches to AI deployment and the evolving discussions around AI in industry consortia.

Key Highlights:

  • Incorporating AI in Compliance Training
  • Generative AI in Quality Management
  • Quality Assurance and Compliance
  • AI’s Role in Compliance and Risk Management
  • Implementing AI in Life Sciences
  • Future of AI in Life Sciences

Resources:

Matt Lowe on LinkedIn 

MasterControl

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

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Compliance and AI

Compliance and AI: Jay Rosen on Emerging AI Threats in Corporate Compliance and Cybersecurity

What is the role of Artificial Intelligence in compliance? What about Machine Learning? Are you using ChatGPT?

These questions are but three of the many questions we will explore in this exciting new podcast series, Compliance and AI. Hosted by Tom Fox, the award-winning Voice of Compliance, in this podcast Jay Rosen joins me to discuss AI and fraud risk management.

Jay Rosen delves into the escalating influence of AI in corporate fraud, with historical and modern examples. A recent case from Hong Kong highlights how deepfake technology can be used to deceive employees. The speaker outlines three main AI threats: real-time deepfakes, AI-enabled evasion tactics, and manipulation of AI models.

It outlines strategies for corporations to mitigate these risks, including training on deepfake detection, ensuring secure data access, and implementing dual authorization processes. The goal is to prepare compliance departments for the AI-driven era of corporate crime.

Key Highlights:

  • Introduction to AI and Corporate Fraud
  • The Rise of AI in Cybersecurity and Fraud
  • Emerging AI Risks and Compliance Challenges
  • Key Areas of AI-Enabled Fraud
  • Deep Fake Technology and Corporate Impersonation
  • Mitigating AI Risks in Corporate Environments
  • Strategies for Handling Deepfakes and Model Manipulation

Resources:

Jay Rosen on LinkedIn

Tom Fox

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Facebook

YouTube

Twitter

LinkedIn

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Uncovering Hidden Risks

Ep 15 – Secure Access in the Era of AI

Jef Kazimer, Microsoft’s Principal Product Manager, and Bailey Bercik, Senior Product Manager, join Erica Toelle and guest host Lisa Huang-North on this week’s episode of Uncovering Hidden Risks. Today’s episode will focus on security in the era of cloud and AI, with insights from Microsoft Security’s product team. It will encompass AI-driven security measures, data protection, identity management, and compliance in the cloud while providing valuable insights for professionals navigating the evolving landscape of cloud security and AI’s influence on it. Together, they discuss the importance of basic security hygiene, the implications of sophisticated AI-based attacks, and the necessity of adopting a defense-in-depth strategy to protect against emerging threats.

In This Episode You Will Learn:

  • The use of generative AI in attack vectors like phishing and social engineering
  • Principles of zero trust and how they apply to AI systems
  • Challenges and opportunities for securing identity and access in 2024

Some Questions We Ask:

  • How can organizations leverage Microsoft’s Zero Trust framework to protect their data?
  • What are the best practices when implementing passwordless authentication?
  • Are the principles of Zero Trust still relevant to this new wave of threats?

Resources:

View Lisa Huang-North on LinkedIn

View Jef Kazimer on LinkedIn

View Bailey Bercik on LinkedIn 

View Erica Toelle on LinkedIn     

Connect with the Compliance Podcast Network at:

LinkedIn: https://www.linkedin.com/company/compliance-podcast-network/
Facebook: https://www.facebook.com/compliancepodcastnetwork/
YouTube: https://www.youtube.com/@CompliancePodcastNetwork
Twitter: https://twitter.com/tfoxlaw
Instagram: https://www.instagram.com/voiceofcompliance/
Website: https://compliancepodcastnetwork.net/

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TechLaw10

TechLaw10: Eric Sinrod & Jonathan Armstrong on the Technology Law aspects of AI

In this edition of TechLaw10, Jonathan Armstrong, Director—L-EV8, talks to Professor/Attorney Eric Sinrod from his home in California. They look at the technology law aspects of AI.

Jonathan talks about:

  • The conflicts between AI and GDPR.
  • The investigation and regulatory action against Clearview AI.
  • Italian DPA’s activity against the use of AI with food delivery apps.

Eric looks at:

  • The impact of US privacy law.
  • Issues presented by AI with
    – contracts
    – torts – who should bear liability when something goes wrong?
    – discrimination & bias

Discover L-EV8 as a new training business with Jonathan Armstrong

You can listen to earlier TechLaw10 audio podcasts with Eric and Jonathan at www.techlaw10.com.

You can find out more about Eric here at  Duane Morris LLP and more about Jonathan here at L-EV8 

Connect with the Compliance Podcast Network at:

LinkedIn: https://www.linkedin.com/company/compliance-podcast-network/

Facebook: https://www.facebook.com/compliancepodcastnetwork/

YouTube: https://www.youtube.com/@CompliancePodcastNetwork

Twitter: https://twitter.com/tfoxlaw

Instagram: https://www.instagram.com/voiceofcompliance/

Website: https://compliancepodcastnetwork.net/

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Compliance and AI

Compliance and AI: Karen Moore on The American Privacy Rights Act and AI

What is the role of Artificial Intelligence in compliance? What about Machine Learning? Are you using ChatGPT? These are but three of the many questions we will explore in this exciting new podcast series, Compliance and AI. Hosted by Tom Fox, the award-winning Voice of Compliance, this podcast, Karen Moore joins me to discuss the proposed American Privacy Rights Act (APRA) and its intersection with artificial intelligence.

Moore has expressed cautious optimism towards the act, paying particular attention to how the Act impacts artificial intelligence and automated decision-making processes. Drawing on the act’s provisions, Moore emphasizes the importance of the preemption clause, which indicates a shift towards federal regulations superseding state laws. She also underscores the potential challenges and complexities that lie ahead for companies, especially large data holders or high-impact social media companies, in adhering to the APRA’s requirements, such as conducting design evaluations, transparency obligations, and data minimization. This perspective is shaped by her extensive background in the field and her intricate understanding of the Act’s impact on data processing and AI algorithms.

Key Highlights:

  • Introduction to the American Privacy Rights Act Discussion
  • Exploring the Preemption Clause and AI Implications
  • Automated Decision-Making and Its Complexities
  • The Impact on High-Impact Social Media and Large Data Holders
  • Data Minimization Requirements and AI Challenges

Resources:

Karen Moore on LinkedIn

Tom Fox

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Facebook

YouTube

Twitter

LinkedIn

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Compliance Tip of the Day

Compliance Tip of the Day: Data – Driven Solutions for Fraud Risk

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In today’s episode, we discuss how the use of AI and machine learning has revolutionized data analysis and investigation in fraud risk prevention.

Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Everything Compliance

Everything Compliance: Episode 134, The AI Edition

Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows.

In this episode, we have a quintet of commentators; Jonathan Armstrong, Jonathan Marks, Matt Kelly, Jay Rosen, and special guest Karen Moore, all hosted by Tom Fox.

1. Matt Kelly discusses the role of the Board of Directors in AI. He rants about Kristi Noem killing her dog and that APRA should be ARPA.

2. Host Tom Fox shouts out to the revival of the Rock Opera Tommy on Broadway and to Pete Townshend

3. Jonathan Marks reviews AI and internal controls. He shouts out to Maureen Stanko and the So Much to Give Inclusive Cafe for starting a restaurant that utilizes people with autism as employees.

4. Jay Rosen considers compliance issues for AI. He shouts out to his favorite time of the sports year, with the NBA and NHL playoffs, MLB in full swing and the start of the WNBA.

5. Karen Moore considers the AI implications from the American Privacy Rights Act. She shouts out to Travis Clayton for being the first Rugby Union player to be signed to the NFL and to the Buffalo Bills for doing so.

6. Jonathan Armstrong reviews the EU AI Act. He shouts out to Kate Middleton for the grace and dignity which she has shown throughout her cancer diagnosis.

The members of the Everything Compliance are:

Jay Rosen– Jay can be reached at Jay.r.rosen@gmail.com

Karen Woody – Is one of the top academic experts on the SEC. Woody can be reached at kwoody@wlu.edu

Matt Kelly – Founder and CEO of Radical Compliance. Kelly can be reached at mkelly@radicalcompliance.com

Jonathan Armstrong – is our UK colleague, and is an experienced data privacy/data protection lawyer in London. He can be reached at windyridgehouse@gmail.com.

Jonathan Marks can be reached at jtmarks@gmail.com.

Special Guest Karen Moore can be reached at Kmoore51@fordham.edu

The host, producer, and ranter (and sometimes panelist) of Everything Compliance is Tom Fox, the Voice of Compliance. He can be reached at tfox@tfoxlaw.com. Everything Compliance is a part of the Compliance Podcast Network.

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Great Women in Compliance

Great Women in Compliance: Jess Nall on Defending Tech Innovators

Welcome to the Great Women in Compliance Podcast. In this episode, Hemma visits with Jess Nall, a partner at Baker McKenzie.

Jess is a leader of Baker McKenzie’s AI and Cyber practice and
leads the Firm’s government defense practice in the US heart of technological innovation, the San Francisco Bay Area. For more than twenty years, Jess has defended technology innovators in high-profile federal and state government enforcement and investigations involving AI, cyber-security, algorithmic price-fixing, economic espionage, and trade sanctions.

With two decades of tech law experience under her belt and playing a pivotal role in various global technology enforcement cases, Jess has a grounded understanding of the complexities surrounding AI compliance and enforcement. She highlights the rapidly evolving global regulation and the increasing pressure it places on compliance professionals.

Jess advocates for a proactive approach to comprehension and readiness for the enforcement and governance aspects of AI, encouraging clients to have robust good faith narratives that illustrate their compliance efforts. This perspective is formed not only from her substantial professional experience but also her deep understanding of the potential risks and malpractices related to the use of AI technology.

Key Highlights:

  • AI Regulations: Impact on Businesses and Compliance
  • Navigating Risks in AI Compliance and Enforcement
  • Deceptive AI Marketing Practices in Industry
  • Fostering Collaboration for AI Compliance Success
  • Enhancing Regulatory Compliance with AI Analytics
  • Enhancing Legal Access with AI Translation

Resources:
Join the Great Women in Compliance community on LinkedIn here.

AI Strategy: The Whole Brain Approach Will Win in forbes.com