The European Union's Artificial Intelligence Act (AI Act), set for enactment in mid-2024, represents a landmark in the global regulatory landscape for digital products and services. This comprehensive legislation is poised to fundamentally reshape how AI is developed, deployed, and managed based on the digital risks it manifests. As the first of its kind, it establishes a precedent for digital risk management, emphasizing safety, fundamental rights, and transparency.

Artificial Intelligence (AI) is a double-edged sword, offering both unprecedented opportunities and complex challenges. As boards and executives grapple with the rapid advancements in AI, they must navigate a landscape fraught with both promise and peril. This article aims to equip board members with key AI insights from a recent report by the National Association of Corporate Directors (NACD) and the Data & Trust Alliance, as well as a keynote address by John A. Wheeler at AuditBoard's Audit+Beyond event.

Artificial Intelligence (AI) has become pervasive in our society, transforming how we work, communicate, and solve problems. However, it’s not immune to the cognitive biases that its human creators hold. An intriguing example is the Dunning-Kruger effect, a cognitive bias in humans that can inadvertently permeate AI systems, posing unique risks.

This article explores the transformative potential of Artificial Intelligence (AI) and its paradox. On the one hand, AI is like an artificial sweetener, enhancing our experiences and offering transformative advantages. On the other, without proper understanding, it can lead to unwanted outcomes. Through this lens, integrated risk management (IRM) provides the vital balance we need in the world of AI.

The future of AI and ML will likely involve even greater integration across various risk management domains, enabling organizations to proactively identify risks, allocate resources more efficiently, and strengthen their overall risk management capabilities.