Risk Manager + AI: EU’s AI Act Shakes Up Compliance, ZestyAI Teams Up with Safepoint for Smarter Underwriting, Check Out NIST’s New AI Glossary

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• EU’s AI Act Shakes Up Compliance Going Forward

• Dynamic Risk Management is Here

• ZestyAI Teams Up with Safepoint for Smarter Underwriting

• Navigating the Changes That Generative AI is Bringing to the Legal Function

• Check Out NIST’s New AI Glossary

EU AI Act Shakes Up Compliance Going Forward

The EU's AI Act is set to transform how companies manage artificial intelligence. Under these strict new regulations, businesses must now demonstrate ethical AI use and proactively mitigate risks.

- 20+ types of AI systems are classified under the Act.

- Fines up to €30 million or 6% of global revenue for non-compliance.

- 27 EU member states need to embed these rules into their local laws.

Under the Guidelines… “Take measures to ensure, to their best extent, a sufficient level of AI literacy of their staff and other persons dealing with the operation and use of AI systems on their behalf, taking into account their technical knowledge, experience, education and training and the context the AI systems are to be used in, and considering the persons or groups of persons on whom the AI systems are to be used.”

Why It Matters: Failing to comply could mean hefty fines and reputational damage. As a result, many companies operating in Europe will need to rethink their AI strategies.

What's Next: Businesses will need to create robust compliance programs. Expect a surge in demand for AI specialists to navigate these new regulations. The Act sets a precedent for global AI governance. Read More

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Dynamic Risk Management is Here

AI is changing the practice of risk management in more ways than one. Case in point: Traditional methods are losing ground to AI-enabled dynamic risk registers that promise to transform how risks are identified and mitigated.

By integrating up-to-date data and machine learning techniques, these systems offer a more proactive approach to safety and risk.

By the Numbers:

- 30% increase in risk detection accuracy reported by early adopters.

- 40% reduction in response time to potential hazards with AI systems.

- 25% cost savings due to more efficient resource allocation in risk management.

Why It Matters: AI-enabled systems could redefine how industries handle risk, ensuring safer operations and reducing costly accidents.

What's Next: Keep an eye on how AI adoption progresses across different sectors. Future developments could see tighter integration with IoT devices, providing even more accurate real-time data for risk analysis. Read More

ZestyAI Teams Up with Safepoint for Smarter Underwriting

Safepoint Holdings is joining forces with ZestyAI to shake up their underwriting game. This partnership is all about using AI to predict and manage risk with laser precision. Safepoint aims to enhance its loss cost control and streamline processes with cutting-edge analytics.

By the Numbers:

- Safepoint covers over 200,000 policyholders across multiple states.

- The partnership aims to reduce underwriting time by up to 50%.

- ZestyAI's models analyze over a million data points for accurate risk assessment.

Why It Matters: AI-driven insights can redefine traditional insurance models, offering more tailored plans and potentially lowering costs for consumers. It also has the potential to help insurers tighten their profit margins and generate new growth.

What's Next: Safepoint plans to roll out these new AI-enhanced underwriting capabilities by early next year. Read More

Navigating the Changes That Generative AI is Bringing to the Legal Function

Generative AI is reshaping how in-house legal teams operate, but with its potential upside come a host of risks and compliance challenges. Legal teams are now focusing on training, oversight, and the latest regulatory updates to harness AI effectively.

- 30% of legal departments are actively integrating AI tools.

- 70% express concerns about compliance and governance.

- 50% are updating vendor agreements to include AI clauses.

What to Watch For: As legal teams adopt AI, understanding its implications is crucial to mitigate risks and leverage potential benefits effectively. Does everyone get it?

What's Next: In-house counsels are expected to draft more comprehensive AI policies, leveraging continuing legal education on AI-related topics. Regulatory bodies may soon provide clearer guidelines on AI use in legal practice. Read More

Check Out NIST’s New AI Glossary

The National Institute of Standards and Technology (NIST) is rolling out a beta version of their AI glossary. This glossary is part of the NIST AI Risk Management Framework (AI RMF) initiative, aiming to standardize AI terms. It's available as a spreadsheet, offering a new tool for those navigating the complexities of AI risk.

Why is Exists: The glossary, like the AI RMF, is non-sector specific and use-case agnostic, designed to be flexible for all organizations and sectors of society to use. A document describing the motivation and development of the glossary is also being released.

Why It Matters: Standard definitions can help streamline communication and policy development around AI technologies and their risks.

What's Next: NIST will be gathering feedback from users to refine the glossary, including potential integrations into broader AI risk management strategies. Dive in Here