record-keeping

  • AI as a System of Record: Governance Challenges


    AI Is Quietly Becoming a System of Record — and Almost Nobody Designed for ThatEnterprise AI is increasingly being used not just for assistance but as a system of record, with outputs being incorporated into reports, decisions, and customer communications. This shift emphasizes the need for robust governance and evidentiary controls, as accuracy alone is insufficient when accountability is required. As AI systems become more autonomous, organizations face greater liability unless they can provide clear audit trails and reconstruct the actions and claims of their AI models. The challenge lies in the asymmetry between forward-looking model design and backward-looking governance, necessitating a focus on evidence rather than just explainability. This matters because without proper governance, organizations risk internal control weaknesses and potential regulatory scrutiny.

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