Artificial intelligence (AI) has taken society by storm. It has widespread use in daily human interactions, technology, and processes, such as automating tasks and analyzing datasets, to make better decisions and allocate resources more effectively.

As the digital enterprise of today grows and reliability on emerging technology such as AI increases, organizations face risks, both internal and external. Those not able to address these risks will either cease to exist or will be subjected to reputational damage, financial losses, or regulatory sanctions.

AI’s impact on GRC

Implementing a structured approach to governance, risk, and compliance (GRC) enables an organization to manage its operations, risks, and compliance and achieve its business objectives. As artificial intelligence systems continue to be woven deeply into every fabric of life and business, businesses must develop new strategies to manage the risks associated with AI and help ensure safe and ethical use of the various systems and the results they generate.

The challenges for adopting AI include the following:

• Data accuracy and bias
• Data availability
• Expertise
• Financial justification
• Ethical considerations
• Explainability and transparency

The right deployment of AI may mean the difference between having that competitive edge or being second best. Integrating artificial intelligence with automation processes to perform tasks and make decisions, can boost efficiency and accuracy to another level.

AI risks and how to address them

However, savvy AI users understand that there is an inherent risk in letting automation take 100% control of decision-making. There is the risk of the AI “going rogue” or making inadvertently bad decisions due to biased data or unethical practices.

Addressing these inherent risks means addressing the security implications in GRC, or Security Governance Risk and Compliance (SGRC). Incorporating security elements such as data confidentiality and integrity, into AI tools will enable organizations to maximize the value of AI. SGRC addresses risk and helps create mitigation or reduction measures that are within an organization’s manageable risk profile.

As organizations increasingly deploy AI in their operations either at scale or through limited use, it becomes increasingly important for them to conduct in-depth study of its risks and the implementation of a governance framework to manage how AI, if at all, would be integrated into the organization’s processes, technology, and human interaction.

While various countries and authorities continue to roll out new compliance requirements for AI’s safe and ethical use, these regulations have not kept pace with AI’s development and deployment . As compliance and regulatory requirements catch up with AI use, emphasis will focus on privacy, ethics, public safety, bias, and copyright. It becomes critical for these organizations to facilitate responsible AI adoption within their environments. This includes the need for human oversight or what is known as Human in the Loop (HILP) in AI use when making critical decisions that may have significant monetary, ethical, or life- and-death implications.

Next steps

Every organization considering limited or at-scale deployment of AI technology would benefit from AI auditing to help ensure accountability and transparency within their AI systems.

To fully realize the benefits of AI while managing its risks, organizations should take deliberate, strategic action, including:

1. Conduct an AI risk & readiness assessment: Evaluate your organization’s current AI use, data governance, and risk exposure. This foundational step identifies gaps and opportunities for responsible AI integration.

2. Establish a governance framework for AI: Define policies, roles, and oversight mechanisms to ensure ethical, transparent, and compliant AI deployment—tailored to your industry and regulatory landscape.

3. Implement AI auditing protocols: Regular audits promote accountability and transparency. CohnReznick can help design audit-ready systems that align with evolving legal and ethical standards.

4. Integrate human oversight: Make sure critical decisions involving AI include human review, especially where outcomes may impact safety, equity, or compliance.

5. Engage stakeholders across the enterprise: Foster a culture of responsible AI by involving leadership, legal, compliance, and technical teams in governance and decision-making.

6. Stay ahead of regulatory change: With global AI regulations rapidly evolving, CohnReznick helps clients monitor developments and adapt policies to remain compliant and competitive.

CohnReznick’s advisory services are uniquely positioned to guide this journey, helping clients align AI adoption with governance, risk, and compliance (GRC) best practices.

In conclusion, AI’s powerful ability to address risks can significantly improve business efficiency and competitiveness. Organizations should be prepared to tackle these challenges by staying informed and being proactive. Enlisting third-party expertise, such as CohnReznick’s advisory services, can provide the strategic guidance and technical assurance needed to implement AI responsibly and unlock long-term value.