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AI Governance — Drive Compliance, Efficiency, and Outcomes from Your AI Lifecycle

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As businesses start to scale the use of AI as a transformative power to innovate and be more efficient, they have to manage the risks that come from it. Specifically, when dealing with sensitive customer data and in regulated industries, governance is a mandatory aspect of operations. However, as AI becomes more prevalent, there are new gaps that need to be addressed in governing the lifecycle of data as well as the models trained on that data. At the same time, governance processes should not impede the iterative nature of Data Science experiments that help build and operate AI applications. Join IBM to hear why AI governance is becoming increasingly important in today’s age, from governing for control to governing for efficiency and outcomes.

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AI Governance — Drive Compliance, Efficiency, and Outcomes from Your AI Lifecycle

  1. 1. AI Governance — Drive Compliance, Efficiency, and Outcomes from Your AI Lifecycle — Scott Buckles North America Business Unit Executive Information Architecture
  2. 2. When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  3. 3. Use Cases Driving a Data Governance Strategy Governance for InsightsGovernance for Compliance Discover, classify and manage information in ways that meet the obligations enforced by both regulatory and corporate mandates Provide safe access to trusted, high quality data while facilitating effective collaboration among team members to become a data driven organization When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  4. 4. The Data Governance Journey Siloed Efforts Reactive Proactive Business Ready Data Quality is not a focus at point of creation. Continuous Improvement in your Information Supply Chain does not exist. Departmental Data Improvements Enterprise level information governance funded and sustained as a part of “How You Do Business.” Your data is Business Ready for all consumers now and as tomorrow’s requirements emerge. Limited metrics not directly tied to governance Range of disconnected, discipline- specific tools Data Stewards, Policies & Rules Business Focused Defined, formally reviewed governance metrics Enterprise-based integration & governance tools with LOB access When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  5. 5. When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  6. 6. $2.9 trillion 6.2 billion hours When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  7. 7. 4 The AI Ladder A prescriptive approach to accelerating the journey to AI Infuse Operationalize AI throughout the business Analyze Build and scale AI with trust and transparency Collect Make data simple and accessible Organize Create a business-ready analytics foundation Modernize Make your data ready for an AI and hybrid cloud world When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  8. 8. Use Cases Driving a Data Governance Strategy Governance for AI AI Governance is the program, best practices, and controls to ensure AI capabilities perform appropriately, ethically, morally, & legally to mitigate market and social risk while benefiting business objectives. When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  9. 9. 9 What is AI governance? AI strategy Strategic imperatives Use cases Competencies Technologies Explainable AI Fairness Traceability Understandability Auditability AI governance Model management Digital ethics Compliance Monitoring Quality Source: Gartner When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  10. 10. 10 Why AI governance? By 2022… 65%of enterprises will task CIOs to transform & modernize governance policies to confront risks by AI, ML, Data Privacy & Ethics Compliance Trust Efficiency Align AI strategy with regulations & legal requirements Maintain Cust Sat & Brand Value by ensuring trustworthy & transparent AI Improve speed to market & reduce costs by standardizing/optimizing AI development & deployment When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation Source: IDC FutureScape: Worldwide CIO Agenda 2019 Predictions, idc.com, October 2018
  11. 11. Enterprises must consider regulatory compliance as they scale AI throughout their business 11 CCPA GDPR When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  12. 12. Enterprises must consider data privacy consisting of many pieces Proposal for Algorithmic Accountability Act • Expands consumer privacy rights to more closely align with the EU’s GDPR • Regulates AI systems across industries in the United States to reduce bias and discrimination • Requires all public agencies to conduct an impact analysis for AI models • Requires model risk management for all models in financial services Source: If applicable, describe source origin 12 Canadian National AI Strategy CRPA SR 11-7 When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  13. 13. Confronting and ending support for biased facial recognition Gender-biased Apple credit card approval process Enterprises must consider brand as they scale AI throughout their business 13 Gender-biased recruitment software Unethical usage of personal data When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  14. 14. Use your model AI Ready Data 14 Trust your model Know your model Use your data Trust your data Know your data Business Ready Data When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  15. 15. Roles in the AI governance lifecycle 15 App implementation Approval Validation Black box testing Model development White box testing Origination Business user ML engineer SW developer Business approver Risk reviewer Model validator Data scientist Business owner Governed catalogue Model facts (metrics, intent, etc.) Lineage Governed features Business terms Policies Monitor/Check Business KPIs analysis Performance Compliance Change in external assumptions Chief Risk Office Data and model governance Each persona contributes model facts and can receive aggregate facts (fact sheets) from the repository Each persona uses metrics and KPIs to validate, approve, or improve a model (or an AI powered app) before and in production – Data scientist and CDO interact on data sources through metadata repository – Policy enforcement occurs at many places (build time, validation, production monitoring) – CRO defines the tests and criteria for validating models – Validators implement and execute tests based on CRO guidance – Risk professionals review outcome of risk management tests – Business approver uses CRO guidelines to implement first line of defense – Business users and auditors will use framework to fulfill audit requirements Chief Data Office Data and model governance Deployment Production monitoring Continuesimprovement When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  16. 16. 16When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  17. 17. Enterprises must consider regulatory compliance as they scale AI throughout their business Canada 2017—National AI Strategy launched 2020—All public agencies must do an impact analysis for AI models European Union 2019—Guidelines for AI development Partnerships on AI Partnership between tech companies to study best practices and impact of AI AI Now Institute NYU research center focused on social implications of AI USA SR 11–7 requires model risk management for all models in financial services 2019—Proposal for Algorithmic Accountability Act Mexico 2018—General principles for AI development in the government Finland 2018—Report on policy recommendations for reskilling workers 17When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation
  18. 18. Documentation of model inputs and behavior requires manual work; amplified by changes in data and model versions Challenges when implementing AI systems for production scenarios 18 Companies have multiple tools and platforms that do not easily share metadata about models Current practices and tools not optimized for AI (for example, bias as a factor in data quality analysis) When you interact with IBM, this serves as your authorization to Dataversity or its vendor to provide your contact information to IBM in order for IBM to follow up on your interaction. IBM’s use of your contact information is governed by the IBM privacy policy. IBM Watson / 12.15.20 / © 2020 IBM Corporation

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