I had the privilege of meeting Julie Myers Wood, CEO at Guidepost Solutions, to discuss the incorporation of AI into compliance programs. Julie's extensive background in law and government positions brings valuable knowledge and insights to this conversation. We delved deep into the intersection of compliance and artificial intelligence (AI), exploring the challenges and considerations involved. When it comes to AI, compliance professionals must take a high-level perspective and reflect on how it can affect their company. A series of questions should be asked, such as the internal use of AI tools, the company's operations and capacity to understand these tools, the nature of the company's offerings, the compliance tasks performed by each team member, the compliance tools used, any unauthorized usage of AI tools by freelancers within the company, and how criminals may exploit generative AI for illicit purposes. It is crucial to comprehensively assess the various ways AI can impact the organization. Furthermore, it is important to establish an inventory of tools used within the company. Compliance professionals should have a comprehensive understanding of the capabilities and limitations of these tools, even if it proves challenging due to a mix of proprietary and commercially available solutions. Ownership of software tools, expiration dates, seat allocations, and license keys must also be clarified. This knowledge is essential for effective compliance management and risk mitigation, as well as for sound business practices. As generative AI rapidly advances, compliance professionals must proactively stay informed about the potential risks it entails. Julie emphasizes the need to be aware of risks related to generative AI, export compliance, and other potential issues. By staying updated on the latest developments, compliance professionals can adapt to the changing landscape and make informed decisions. Additionally, Julie suggests retraining or supplementing employee training to address the implications of AI integration.

Educating the workforce on AI's application and fostering a safe environment for exploration and experimentation are key, as exemplified by PwC's significant investment in AI and employee development. However, smaller companies may face challenges in investing in and effectively implementing generative AI. AI has transformative potential in compliance, particularly in data analysis and interpretation. Compliance professionals are enthusiastic about using AI for predictive analytics and identifying trends and patterns. However, selecting the right compliance tools is crucial, as the market winners and losers can significantly impact the company's success. Collaboration between operations and compliance teams is essential when considering AI implementation, requiring clear policies defining the acceptable use of AI to safeguard intellectual property and ensure compliance. Moreover, targeted and effective training, coupled with ongoing communication, is essential for educating employees about the risks and consequences of misusing AI tools. Caution should be exercised when downloading AI tools from the web, with thorough review of terms and conditions to avoid unintended consequences. Compliance professionals hold a vital role in ensuring the safety and security of businesses. The integration of AI into compliance programs presents both challenges and opportunities. By understanding the tools, risks, and solutions associated with AI, compliance professionals can adapt and make informed decisions. For the full podcast with Julie Myers Wood, visit the Compliance and AI page. DISCLAIMER: This information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular circumstances due to its generality.