AI Benefits vs. Risks
AI brings opportunities but also concerns like bias, hallucinations, cybersecurity threats, and copyright issues. Many companies only realise the full scope of risks as they scale AI adoption.

Strategic AI Investment
To maximise impact, businesses should carefully plan their AI strategy, assess alternatives, and stay agile to adapt as needed.

Risk Classification & Compliance
Companies use frameworks like the OECD, EU AI Act, and EO 13960 to structure AI risk management. Some create their own risk tiering (1-4 scale) to classify risks from unacceptable to minimal.

External Pressures & AI Adoption
Startups and competitors force businesses to adopt generative AI quickly, often for non-strategic but essential use cases. Thoughtful prioritisation is key to balancing risk, investment, and ROI.

Proactive Risk Management

  • Regular testing & compliance checks are essential to avoid bias and legal issues.
  • “Privacy by design” and ethical AI principles help maintain trust.
  • AI vendors often integrate risk management, but companies must still continuously evaluate their AI systems.

Bottom Line
Trust and compliance are crucial in AI adoption.  Companies must stay ahead of risks to maintain credibility and customer confidence in the AI-driven era.

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