Bass, Berry & Sims attorney Emily Burrows authored an article for CFO.com discussing key legal considerations to help finance leaders understand and mitigate risk when supporting or overseeing initiatives involving the implementation of artificial intelligence (AI).
Emily emphasized how data privacy and protection are paramount, along with the need to consider potential biases and compliance issues in light of the uncertain regulatory landscape. Intellectual property and licensing strategies are also important in terms of data ownership. There may also be risk posed by contracts in collaboration with outside vendors, which is why it is also important to have cybersecurity and incident response protocols in place.
Overall, transparency, oversight and risk management go a long way in demonstrating responsible and ethical use to stakeholders who may be affected by potential risks posed by AI implementation.
“By proactively addressing data privacy, transparency, bias, regulatory compliance, intellectual property, contractual risk, risk management and cybersecurity, finance professionals can mitigate legal exposure and unlock the full value of AI,” explained Emily. “A strategic, risk-aware approach to AI implementation not only protects the organization but also positions it for long-term success.”
The full article, “7 Legal Considerations for Mitigating Risk in AI Implementation,” was published by CFO.com on August 12 and is available online.
This article is the third in a three-part series published by CFO.com providing CFOs with essential legal updates and an examination into key legal issues that impact the financial health of a business, outlining practical strategies to navigate and manage risks in a CFO’s daily responsibilities. The earlier articles in the series include:
- “5 Key LOI and Purchase Agreement Strategies CFOs Must Master,” authored by Bass, Berry & Sims attorney Tatjana Paterno (published on June 17)
- “Growth Mode: Key Loan Agreement Provisions During an Acquisition,” authored by Bass, Berry & Sims attorney Katie Smalley (published July 16)