In our recent webcast with ACA Group, Navigating AI Implementation Compliance Considerations for Private Markets, we surveyed our participants and found that the majority, 54%, were not monitoring or unsure if they were monitoring AI use at their firm. Kris Lau, Managing Director at ACA Aponix®, also noted in the 2024 Cybersecurity Benchmarking Survey, that 40% of respondents had yet to evaluate AI as a cybersecurity risk, and 58% see AI as new cybersecurity risk. We know that AI is becoming a “must-have” for alternative investment managers, but with the rapid deployment of new technologies, key security, privacy, and regulation considerations are still being determined.
As AI becomes more prevalent, it is crucial to address the security and compliance considerations associated with its implementation. In this blog, we will provide a high-level overview of the key factors to consider when deploying AI systems, ensuring data protection, privacy, and regulatory compliance.
AI systems rely heavily on vast amounts of data, making data security a top priority. Consider the following measures to safeguard your AI implementation:
AI systems often process personal and sensitive information, necessitating compliance with privacy regulations such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). Consider the following privacy-focused considerations:
AI implementations must adhere to various industry-specific regulations. Consider the following compliance considerations:
Implementing AI systems requires careful consideration of security and compliance aspects to protect data, ensure privacy, and comply with regulations. Organizations can build trustworthy and responsible AI systems by prioritizing data security, privacy protection, fairness, and regulatory compliance. As AI continues to evolve, staying updated with emerging security and compliance best practices will be essential for successful and ethical AI implementations.
At BlueFlame AI, we place a strong emphasis on security, privacy, and regulatory compliance. Our commitment is underpinned by the knowledge and expertise of our founding team, several of whom previously led a specialized cybersecurity and privacy consultancy. We understand the critical regulatory and fiduciary obligations our clients face. Consequently, our systems and processes have been carefully designed to be highly robust, thoroughly addressing the security and privacy considerations outlined in this article.