Intro
Artificial Intelligence (AI) has the potential to revolutionize the way we live and work. It can improve efficiency, productivity, and decision-making. However, it also presents significant risks, such as algorithmic bias, privacy violations, and safety concerns. To address these issues, the National Institute of Standards and Technology (NIST) released its AI Risk Management Framework (AI RMF) at the start of 2023. In this breakdown, we'll explore what the AI RMF is, how it relates to the EU's recent AI Act, what it means for your business, and how to get started implementing it.
What is NIST's AI Risk Management Framework?
The AI RMF is a set of guidelines that helps organizations manage the risks associated with AI technologies. It consists of two parts: Part 1 provides an overview of how organizations can frame risks related to AI, which actors play a role in the AI lifecycle, types of AI risks, and plans to evaluate the effectiveness of the AI RMF. Part 2 offers guidance on how to implement and manage the AI RMF and includes organization profiles and case studies. The framework covers all stages of the AI lifecycle, from development to deployment and operation. Its implementation is broken down into four components:
1. Govern—a cross-cutting, high-level function that drives a comprehensive risk awareness culture and encourages accountability.
2. Map—an organizational function that ensures actors in different departments with different types and depths of information work toward cohesive governance outcomes.
3. Measure—a support function that involves risk analysis, benchmarking, and monitoring over time.
4. Manage—a function that entails allocating resources, communicating with third-party sources, and establishing improvement and adaptation mechanisms.
A key benefit of this framework is its flexibility. Different enterprises have different needs, depending upon their size, resources, goals, and reach. The NIST’s AI RMF is customizable, in the sense that any given organization can satisfy the guidelines according to their needs and constraints.
How does the AI RMF differ and relate to the EU’s AI Act?
Unlike the AI RMF which is a set of voluntary guidelines, the EU’s AI Act is a law. A key goal of the AI Act is to provide regulation around certain categories of AI systems, based on their level of risk, and prohibit specific uses of AI whose risks to society are considered unacceptable.
For organizations interested in complying with the EU AI Act, the NIST AI RMF is an excellent starting place. NIST has already published a draft crosswalk to the EU AI Act on their website. Key requirements of the EU AI Act, particularly those around establishing of a Quality Management System (QMS) for AI, can be addressed by adhering to the NIST AI RMF. Additionally, the US Congress is currently considering legislation that would require federal agencies to adopt the AI RMF, increasing the likelihood of it becoming a foundational standard for private businesses.
Biden’s recent Executive Order on AI places emphasis on the US maintaining a position of global leadership in emerging technologies and industries. A central directive of the executive order is continued development of the NIST AI RMF, including a companion resource for generative AI and differential privacy safeguards.
What does the AI RMF mean for your business?
If your business is developing or using AI technologies, NIST’s AI Risk Management Framework can help you identify and mitigate potential risks. By following the framework's guidance, you can ensure that your AI systems are transparent, accountable, and secure. This will facilitate compliance with upcoming laws such as the EU AI Act. Moreover, if the US Congress passes the proposed legislation, compliance with the AI RMF may become a requirement for government contracts and a de-facto standard for private contracts. Therefore, adopting the framework now could give your business a competitive advantage in the future and save you the added work of adapting to its guidelines later.
How can you implement the AI RMF in your business?
Implementing the AI RMF requires a comprehensive risk management strategy that considers the specific context of your organization, your use cases, and your AI systems. It involves assessing the risks associated with your AI technologies, developing policies and procedures to mitigate those risks, and monitoring and reassessing your AI systems regularly. To implement the AI RMF effectively, you may need to collaborate with various stakeholders, including your IT department, legal team, domain experts, users, and data scientists.
Given the cross-department and multi-disciplinary complexity required to implement comprehensive AI risk management, your organization may also benefit from an AI success and governance platform like Fairo. Tools like Fairo are designed to help your organization develop AI successfully by connecting your tools, your teams, and your standards giving you visibility and control over your AI strategy, operations, and governance.
What are the potential benefits of adopting the AI RMF?
Adopting the AI RMF can help your business in a variety of ways, both in the short and long term. It can enhance the transparency and explainability of your AI systems, thereby fostering trust and accountability. It can also minimize the risks of data breaches, algorithmic bias, and safety incidents, reducing reputational and financial damages. And in the case of ever-shifting governance models, it can increase compliance with regulatory requirements, such as the EU AI Act, giving your business a competitive edge in the marketplace.
Looking to the Future
As AI technologies become more prevalent, managing their risks is critical to consuming them successfully. NIST's AI Risk Management Framework offers a voluntary and flexible approach to AI governance that can help organizations manage those risks effectively. By adopting the framework, your business can enhance the transparency, accountability, and security of your AI systems and gain a competitive edge in the marketplace. Additionally, implementing the AI RMF can help your business comply with regulatory requirements, including certain components of the EU AI Act, New York’s AI hiring law, Colorado SB21-169 and other proposed AI governance legislation at the state, federal, and international levels.
How Can Fairo Help?
Fairo has taken the NIST’s Risk Management Framework down to earth by building controls, evidence requirements, and tests that will guide your organization to adherence. Fairo is committed to being the industry-standard AI success platform, helping your organization implement its AI strategy and governance framework. Fairo seamlessly integrates into your existing ecosystem and is easy to consume.
AI is a disruptive technology. It will fundamentally change how we work and live. AI must be universally built responsibly, trusted, and not feared.
Fairo’s mission is to ensure AI is adopted successfully by providing an enterprise-grade AI Success platform that facilitates the implementation of an AI strategy, AI governance, and AI operations across an entire organization.
