Businesses across every industry will need to adopt AI in order to remain competitive in the current market but implementation can be fraught with risk.
Traditional approaches to model risk management are insufficient due to the dynamic and complex nature of AI implementation.
To mitigate the risks of AI, risk management needs to be built in right from the very beginning of any AI projects – we call this ‘Derisking AI by Design’. The full approach requires risk identification, assessment and controls to be embedded into the full AI development cycle from ideation to when the solution is active.
Not all businesses are starting from the same point – those in highly regulated industries will be familiar with analytical models and have a better foundation to start from, while others may be approaching AI implementation with very little existing infrastructure. No matter the starting point, derisking AI by design will enable businesses to implement AI within their organizations with confidence, enabling them to avoid costly mistakes and harness the power of this new technology.
This article was originally published on McKinsey.com on August 13, 2020, and is reprinted here by permission.