There are several risks involved in dealing with Artificial Intelligence (AI). In the globalized world, however, such methodology choices can eventually snowball into much greater economic risks. Let me make a case for an AI Risk Manager in organizations, preferably sitting in the Risk Management Department (RMD) if not compliance. The series of recent AI mishaps have further ignited the debate. A person from Michigan sued the Detroit police after being falsely arrested and falsely identified as a shoplifting suspect by the department's facial recognition software.

Last year I wrote about how AI regulations will lead to the emergence of professional AI risk managers. This has already happened in the financial sector where regulations patterned after Basel rules have created a financial risk management profession to assess financial risks. Last week, the EU published a 108-page proposal to regulate AI systems. This will lead to the emergence of professional AI risk managers. The proposal doesn't cover all AI systems, just those deemed high-risk, and the regulation would vary depending on how risky the specific AI systems are: Since systems with unacceptable risks would be banned outright, most of the regulation is about high-risk AI systems.