Regulators, news media and legislators are asking increasingly detailed questions about organizations’ artificial intelligence and machine learning (AI/ML) systems. Five financial regulatory agencies recently asked companies to answer a list of questions about their AI/ML use, and the European Commission asked for comments on 80 pages of proposed AI regulations. This second article in a series provides questions that companies can ask themselves to guide oversight of their AI use before outsiders demand answers. With each question, the article offers insights on steps to take and developments to watch. The first article
covered compliance essentials for AI/ML tools, and the third article will examine how AI audits work and describe the Federal Reserve System’s recommended “three lines of defense” framework to manage algorithm risks. See “IOSCO Issues Final Guidance on AI and Machine Learning
” (Oct. 7, 2021).