The U.S. Department of Justice (DOJ) has introduced important updates to its Evaluation of Corporate Compliance Programs, addressing how companies manage risks associated with artificial intelligence (AI). With AI increasingly integrated into corporate operations, federal prosecutors will now closely examine AI-related risks during criminal investigations and settlement negotiations. These updates, issued in September 2024, reflect the DOJ’s growing focus on ensuring companies responsibly manage AI risks in their compliance programs.
The updated guidance sets clear expectations for how prosecutors should evaluate corporate compliance programs that incorporate AI, with a focus on key areas like fraud detection, risk assessment, and human oversight.
For additional information regarding AI regulations and to find out how this could impact your business, please contact our Managing Partner, Richard Liu, at richard.liu@consultils.com.
Key Elements of the DOJ’s AI Guidance
The DOJ’s revised guidance outlines several important criteria for prosecutors to consider when evaluating a company’s AI use in its compliance programs:
AI Risk Assessments: Companies must conduct thorough assessments of how AI systems are used, particularly in areas where AI could introduce risks, such as fraud or the generation of false documentation.
Human Oversight and Accountability: The DOJ expects companies to maintain clear human oversight over AI systems. Prosecutors will examine how companies ensure that AI-driven processes do not operate independently of human decision-making and whether there are controls in place to prevent misuse.
Employee Training: Prosecutors will also evaluate whether companies have adequately trained their employees on the ethical use of AI, ensuring they understand both the benefits and potential risks. Training should be comprehensive, with a focus on AI-related compliance and risk mitigation.
Risk Mitigation Measures: Companies should have robust risk mitigation strategies in place to prevent AI from enabling misconduct, including internal fraud detection systems and safeguards against AI misuse.
The DOJ’s updated guidance highlights the increasing importance of responsible AI integration in corporate compliance programs. Companies must ensure that AI technologies are used not only to enhance efficiency but also to maintain ethical standards and regulatory compliance.
For additional information regarding AI regulations and to find out how this could impact your business, please contact our Managing Partner, Richard Liu, at richard.liu@consultils.com.
Disclaimer: The materials provided on this website are for general informational purposes only and do not, and are not intended to, constitute legal advice. You should not act or refrain from acting based on any information provided here. Please consult with your own legal counsel regarding your specific situation and legal questions.
Richard Liu, Esq. is the Managing Counsel of ILS. He serves clients as a management-side defense lawyer specializing in employment and business litigation. Richard is also an expert on litigation prevention and compliance. He regularly advises Fortune 500 companies and startups on employment, labor, and commercial matters.
Email: richard.liu@consultils.com | Phone: 626-344-8949
*Disclaimer: This article does not constitute legal opinion and does not create any attorney-client relationship.
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