Page 32 - AI for Good - Impact Report

AI for Good

How organizations implement AI regulatory frameworks

In this context, the organizational side must be considered alongside the governance
perspective. Companies, and other entities subject to these regulations must also prepare for
compliance by investing in organizational AI readiness. While regulatory requirements can be
seen as helpful in the implementation of AI use cases as they provide a general framework,
organizations often face the question of concrete operationalization. What does a regulation
mean in daily practice? Where does it apply? Who is affected? In the case of AI in particular,
robust governance is essential, as it is used in many different areas of a company and can have
different impacts on stakeholders, processes, and finances. To build AI governance, digital
ethics has proven its value in implementing both ethical and regulatory requirements into
operative processes. As a systematic, multifaceted approach to examining digital solutions from
an ethical perspective, digital ethics plays a critical role in establishing effective governance for
responsible AI and digital practices.

Providing digital-ethical frameworks can enable organizations to define clear responsibilities,
roles, and processes, helping to create a secure environment for employees and ensure they
can navigate the rapidly changing landscape with confidence. Moreover, digital ethics fosters
a culture where the use of AI applications is seen as a trusted asset that promotes innovation.
Operationalizing digital ethics in organizations involves several critical steps and approaches to
ensure that ethical principles are effectively integrated into business practices. The first step is
to create a suitable entry point by developing digital ethical guidelines tailored to the specific
industry and organizational values. These guidelines serve as a commitment tool for employees
and a demonstration of principles to external stakeholders. The process also includes conducting
a digital ethics status quo and maturity analysis to identify current ethical risks and challenges
and evaluating the organization's maturity in handling digital ethical matters. 112

Bridging the gap between principles and practice is the next step. This involves translating value-
derived requirements into guiding principles and governance processes for AI projects. These
principles impact operationalization by shaping corporate culture and internal communication.
To manage digital ethical risks effectively, organizations need to define clear roles, decision-
making powers, and responsibilities, which facilitate faster and more reliable decision-making.
This structured approach ensures that digital ethics are embedded at the governance level,
providing employees with a sense of security and guiding them in their daily operations.

In another step, effective operationalization requires ensuring employee commitment. This
involves regular and targeted training to spread digital ethics guidelines across the organization,
enabling employees to incorporate ethical principles into their everyday operations. Assigning
roles and responsibilities, along with allocating adequate resources, are the crucial last step
for implementing digital ethics actions across all levels and departmental silos. In conclusion,
a unified approach to digital ethics aligns with the organization's overarching vision and
mission, making it an integral part of organizational culture and identity. This holistic approach
transforms regulations from a restrictive factor to an enabling mechanism, fostering customer
and stakeholder trust and positioning organizations to navigate the complexities of the digital
world successfully.

The goal of the AI frameworks is to address global challenges like inequality, climate change,
and peace, which are inherently supported by frameworks that prioritize ethical AI development.
By ensuring that AI systems respect human rights and dignity, these frameworks for example
contribute to the achievement of SDG 16, which promotes just, peaceful, and inclusive societies.

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