Risk management considerations for artificial intelligence business applications

Abstract

The number of projects and the amount of investment into artificial intelligence (AI) based business process automation is increasing that is also due to research advancements in corresponding fields. To utilise its true power, business organisations shall identify and treat risks arising from AI, that must be reduced to an acceptable level to maintain fraud-free business operation in alignment with external legislative requirements. If risks are not assessed, then AI might cause greater headache resulting in expensive implementation without business benefit. The objective of the paper is to analyse the nature of risk elements that AI can bring to the life of corporations and the countermeasures that shall be implemented by analysing general IT risk assessment processes and the stages of intelligent system development. The article also examines frameworks for AI risk management approaching risks associated with intelligent decision making by providing guidelines of required business processes to be implemented.