Essential

AI compliance

AI regulation is rapidly evolving, with the EU AI Act, Colorado AI Act, and other frameworks creating new compliance obligations. Proactive compliance today prevents costly remediation tomorrow.

Key takeaways

  • Disclose AI usage in customer-facing products
  • Document training data sources and licensing
  • Implement human oversight for automated decisions
  • Monitor EU AI Act and state-level requirements

Transparency is foundational

Users have a right to know when they're interacting with AI. Disclose AI involvement in customer-facing features, especially for content generation, recommendations, or decisions affecting users. Be specific about what the AI does and doesn't do.

Training data and model documentation

Know your supply chain. Document the provenance of training data, licensing terms for any third-party datasets, and potential biases in your models. If using foundation models, understand their training data and your indemnification rights for IP claims.

High-risk use cases need human oversight

Automated decisions affecting employment, credit, insurance, housing, or education face heightened scrutiny. Implement human review for consequential decisions, document your decision logic, and provide mechanisms for users to contest automated outcomes.

Stay current with evolving requirements

The EU AI Act phases in through 2027 with different requirements for different risk levels. US states are passing their own AI laws. Monitor developments through legal counsel, industry groups, and regulatory announcements. Build compliance infrastructure that can adapt.

Got questions?

Every business is different. Let's discuss how these principles apply to your specific situation.