THE ETHICAL CHALLENGES OF IMPLEMENTING AI IN RISK MANAGEMENT AND COMPLIANCE

Abstract

Organizations around the globe encounter significant ethical challenges and groundbreaking opportunities when incorporating artificial intelligence into Governance, Risk Management, and Compliance (GRC) systems. This comprehensive article delves into the intricate implications of AI implementation in GRC frameworks, emphasizing key aspects such as transparency, bias prevention, and the necessity of human oversight. It examines the evolving nature of AI governance while highlighting the importance of robust compliance systems and ethical guidelines to ensure the responsible use of AI. By analyzing current industry practices and emerging trends, the article provides insights into practical strategies for managing algorithmic transparency, reducing bias in automated decision-making, and maintaining an appropriate level of human involvement in AI-driven processes. Furthermore, it investigates the delicate equilibrium between legal compliance and technological advancement, underscoring the need for companies to develop comprehensive approaches to AI governance that uphold stakeholder trust and guarantee fair treatment across all demographic groups.