Chapter 3: Regulation and Compliance
Navigating AI Governance
AI regulation is emerging worldwide. Understanding current and coming requirements helps organizations prepare for compliance.
Major Regulatory Frameworks
EU AI Act (2024)
The most comprehensive AI regulation globally.
Risk-Based Approach:
| Risk Level | Examples | Requirements |
|---|---|---|
| Unacceptable | Social scoring, manipulative AI | Prohibited |
| High | Hiring, healthcare, law enforcement | Strict requirements |
| Limited | Chatbots, emotion recognition | Transparency |
| Minimal | Spam filters, games | No requirements |
Key Requirements:
- Transparency about AI use
- Human oversight for high-risk
- Quality management systems
- Record keeping
- Deepfake disclosure
United States
Current Landscape:
- No comprehensive federal AI law
- Executive Order on AI Safety (2023)
- Sector-specific regulations
- State-level initiatives (California, others)
- FTC enforcement against deceptive practices
China
Key Regulations:
- Deep synthesis regulations (deepfakes)
- Algorithm recommendation rules
- Generative AI service measures
- Required government approval
Industry Standards
ISO/IEC Standards
- AI system lifecycle
- Risk management
- Trustworthiness
Voluntary Frameworks
- NIST AI Risk Management Framework
- Partnership on AI guidelines
- Industry-specific codes of conduct
Compliance Considerations
For Organizations Using AI
-
Risk Assessment
- Identify AI systems in use
- Classify by risk level
- Document potential impacts
-
Documentation
- Keep records of AI systems
- Document training data sources
- Record decision processes
-
Transparency
- Disclose AI use where required
- Explain AI-driven decisions
- Provide opt-out where applicable
-
Human Oversight
- Maintain human decision authority
- Enable appeal processes
- Train staff on AI systems
Preparing for Regulation
Steps to Take Now
Key Questions
- What AI do we use?
- What data does it process?
- Who is affected by decisions?
- What oversight exists?
- How is it documented?
Key Takeaways
✅ AI regulation is expanding globally
✅ EU AI Act sets the most comprehensive framework
✅ Risk-based approaches are common
✅ Documentation and transparency are key requirements
✅ Start preparing now for coming requirements
Module Summary
You've completed Module 11. You understand:
- Bias: Sources and mitigation strategies
- Copyright: Ownership and legal considerations
- Regulation: Current and emerging frameworks
Next Steps
Take the Module 11 Quiz, then continue to Module 12: Future of Generative AI.