THE CASE: The Compliance Call You Dread
Rohan's HR team uses AI to screen resumes. Legal calls: "Is this GDPR-compliant? Do candidates consent to AI screening? Where's the data stored? Can they request deletion?" Nobody knows. Potential fine: up to 4% of global revenue.
The Core Insight
70% of organizations lack AI compliance policies (PwC). AI processes personal data. GDPR, CCPA, India's DPA = violations = massive fines. Average breach cost: ₹170M (IBM).
The Evidence
70% lack AI policies (PwC)
GDPR fines: 4% of revenue (EU)
Vendor compliance gaps: 60% (Gartner)
AI Compliance Checklist
For Every AI Tool Processing Personal Data:
- What data does it collect?
- Where's it stored?
- Do users consent?
- Can users request deletion?
Create AI Compliance Checklist
- Data minimization
- Consent mechanisms
- Encryption
- Right to access/delete
- Vendor audit
The Experiment
Audit one AI tool for compliance. Document findings. Plan remediation. Repeat for all AI tools.
Sources
- PwC. AI and Regulatory Compliance. 2023.
- IBM. Data Breach Cost Analysis. 2023.
Key Takeaways
- 70% of organizations lack AI compliance policies
- GDPR fines can reach 4% of global revenue
- Audit all AI tools processing personal data