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  5. arrow_forward_ios Global AI Regulatory Trends: Lessons for Directors

Global AI Regulatory Trends: Lessons for Directors

9 August 2024

The latest AI Governance snapshot from the UTS Human Technology Institute analyses AI regulatory trends around the world to identify important lessons for company directors in the age of AI.

The increasing adoption of AI technologies across Australian companies and value chains raises issues for corporate governance.  

AI systems have the potential to influence and place new stresses on strategy, operational and financial performance, risk management, and organisational culture.  

As the Australian Government is developing its suite of responses to AI, company directors can look to regulatory trends in other jurisdictions to ensure they effectively discharge their duties. 

International trends show that regulators have high expectations on how organisations govern their use of AI. Directors of organisations experimenting with or implementing AI need to ensure they are practising effective corporate oversight of AI systems and their impacts. - Professor Nicholas Davis, HTI Co-Director

This snapshot outlines the span of regulatory approaches to AI that are being taken overseas; the range of guidance and other material being released to support compliance; and the recent enforcement action being taken by regulators to enforce existing laws in response to AI. These include interventions related to false or misleading claims about AI (such as “AI washing”); false, misleading or anti-competitive algorithms; misuse of personal data; AI-facilitated discrimination and impersonation; and the failure to take reasonable steps to prevent AI-related harm.  

We are seeing overseas regulators taking enforcement action in response to a wide range of AI-related activities. This is a good reminder that AI is a regulated space, and that existing laws are being enforced in response to activities of concern. - Gaby Carney, HTI Fellow

Taking note of these trends, directors can and should take practical action to discharge their corporate oversight responsibilities in the AI context. For example, they can: 

  • Keep up with developments in AI and understand their strategic relevance and potential risks 

  • Monitor the regulatory landscape and focus of enforcement action in Australia and other jurisdictions 

  • Actively consider how AI impacts their role and duties as a director 

  • Initiate discussions on AI within the board and with management, and 

  • Ensure the company has a comprehensive AI governance program in place. 

This is the third snapshot in HTI’s AI Governance Snapshot Series produced as part of its AI Corporate Governance Program. The first snapshot examined at the essential components of AI governance, and second snapshot explored human-centred AI innovation and AI impact assessments. 

Read the Global AI Regulatory Trends report

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