Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Best Practices for AI Compliance and Security

By Henry Umney
February 01, 2025

Creating new forms of artificial intelligence may be a great leap forward, but controlling them can be a stumbling block for businesses and government agencies alike.
As businesses deploy AI more rapidly and consistently, governments have done what they can to keep a handle on it. The EU AI Act generated headlines and increased interest in regulations surrounding this new technology, but it is not the only legislation that proposes a framework for AI governance. The U.S.’s First AI Executive Order seeks to do the same — and in the U.S. alone, 45 states have introduced AI-related bills.
AI governance has evolved, and the world is constantly finding new ways to leverage its accelerated timeline.
Meanwhile, businesses are working to navigate AI responsibly, driven by legal compliance and concerns over potential misuse. Mismanaged AI could jeopardize critical systems and erode customer trust, underscoring the need for thoughtful implementation and oversight.
They are wise to worry. However, the most forward-thinking companies embrace AI with complete confidence because they have created governance programs that serve as guardrails for this incredible new technology. Effective governance ensures AI consistently aligns with an organization’s best interests, safeguarding against potential risks while unlocking its full potential.

The Governance Basics

AI governance should be dynamic and scale alongside AI deployment. Organizations must budget for continuous monitoring, invest in ongoing training, and evolve their governance frameworks to address new risks.
Staying ahead of threats requires a flexible, proactive approach, mitigating risks in a constantly shifting landscape.
For this reason, transparency in AI isn’t just a box to check off — it’s a business imperative. AI models must justify their decisions clearly, especially in mission-critical use cases. This ensures trust with stakeholders and safeguards against unintentional biases.
In the years ahead, we can expect a heightened focus on business resilience, transparency, and sustainability, all driven by AI and related technologies. As organizations adopt and roll out AI more widely, governance frameworks will be expected to evolve and prioritize ethical use, regulatory compliance, and risk mitigation.
Continuous investment in these areas will define success as AI continues scaling into new uses.
From a governance standpoint, risk management is increasingly intertwined with corporate AI strategies, especially in highly regulated industries like finance, healthcare, and the law. Advanced risk assessment tools will be critical in navigating this landscape, as they will ensure AI systems don’t just work but are ethically sound.
The key to getting it right will be to adopt governance strategies that blend rapid innovation with rigorous oversight, keeping the organization in front of regulatory requirements while maintaining airtight trust and accountability.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.