As artificial intelligence (AI) and machine learning (ML) technologies become integral to enterprise operations, compliance frameworks are evolving to meet the new regulatory challenges they present. AI is being rapidly adopted in sectors ranging from finance to healthcare to customer service, and with it comes a growing need for robust AI compliance measures. Laura White, Chief Compliance Officer at InDebted, provides insight into the current regulatory landscape in the United States and offers guidance on how companies can build compliant, transparent, and accountable AI systems.

For enterprise-level compliance officers, understanding AI compliance is critical to ensuring that these powerful tools are used responsibly, transparently, and within legal boundaries.

The Shifting Regulatory Landscape for AI in the U.S.

AI adoption is accelerating across industries, but the regulatory framework surrounding AI is still catching up. Laura White points to the increasing focus of regulators on AI systems, particularly in consumer-facing industries. One notable regulatory intervention came in June 2023 when the Consumer Financial Protection Bureau (CFPB) issued a supervisory highlight on AI. “The CFPB’s highlight was a clear signal that they are paying close attention to how AI is being used in the industry, particularly in relation to consumer protection,” White explains.

The CFPB raised concerns about AI systems trapping consumers in what White calls a “death loop,” where users are unable to access human support when interacting with AI-driven services. “The danger here,” White notes, “is that consumers may not get their questions answered, or worse, be stuck in an automated cycle that prevents them from resolving critical issues.” For compliance officers, this raises a red flag: AI systems need to include clear pathways for escalation to human agents, ensuring that consumers aren’t left frustrated or without resolution.

State governments are also getting involved. White observes that 25 states introduced bills focused on regulating AI in 2023 alone, with 18 of these passing into law. “This state-level regulatory activity is a strong indicator that lawmakers recognize the need for oversight in AI usage,” she says. “For compliance officers, it’s important to be agile and prepared to adapt to a diverse set of state regulations that may differ from federal guidelines.”

This complex, evolving patchwork of regulations means compliance officers must stay informed and flexible, anticipating further guidance from both state and federal authorities.

Transparency: The Foundation of AI Compliance

One of the central pillars of AI compliance is transparency. As AI technologies increasingly interact with consumers, there is growing debate over whether companies should disclose when an interaction is AI-driven versus human. White advocates for transparency as a best practice, even when disclosure is not legally mandated. “While no formal regulation requires companies to disclose AI usage to consumers, transparency builds trust,” White emphasizes. “Letting consumers know they are interacting with AI creates an environment of openness and reduces the potential for future compliance issues.”

Transparency also aligns with broader regulatory trends. White points to the Federal Communications Commission’s (FCC) inquiry into AI disclosures in 2023, which followed an executive order from the Biden administration focused on AI. “The FCC’s inquiry suggests that we’re moving toward a more regulated environment where AI disclosures may become mandatory,” White says. “But even before that happens, it’s wise for companies to voluntarily adopt disclosure policies.”

She notes that some companies are experimenting with the personification of AI agents as a way to humanize AI interactions and enhance transparency. “Personifying AI agents by giving them a name, like ‘Brooke,’ for instance, can help bridge the gap between human and AI interactions,” White explains. “This not only builds transparency but also helps consumers feel more comfortable engaging with AI systems.”

Building a Compliance Framework for AI

For compliance officers at the enterprise level, it’s essential to build a robust AI compliance framework that addresses both current regulations and future regulatory trends. White stresses that existing regulatory principles can serve as the foundation for AI governance. “In markets like the U.S., Australia, and the UK, there are already clear rules in place around consumer protection—such as ensuring no harassment or deception occurs during interactions. These principles can be applied to AI as well,” she explains.

The key is to ensure that AI systems are subject to the same standards as other consumer-facing technologies. “Compliance officers should ask questions like: Could this AI system be seen as misleading or deceptive? Is it causing frustration or harm to consumers? If so, it’s essential to mitigate those risks,” White says.

White advises compliance officers to implement the following steps when establishing AI governance frameworks:

1. Develop Policies and Procedures for AI Use: White recommends that organizations create clear, formalized policies governing AI usage across departments. “Understanding how AI is used within your organization is critical,” she says. “Document the scope of AI use and ensure policies are in place to guide that usage.”
2. Conduct Risk Assessments: Risk assessments are essential to understanding the potential compliance challenges associated with AI. “A thorough risk assessment allows compliance officers to identify and mitigate potential issues before they become regulatory problems,” White explains. “It’s not just about legal compliance—it’s also about maintaining consumer trust and preventing harm.”
3. Ongoing Monitoring and Auditing: AI systems require continuous monitoring to ensure they remain compliant as they evolve. “AI is not static—it learns and adapts,” White notes. “That’s why compliance officers need to have ongoing auditing mechanisms in place to track AI’s performance and ensure it remains within compliance boundaries.”
4. Consumer Feedback and Transparency: Listening to consumer feedback is crucial for ensuring that AI systems are meeting user needs without causing frustration. “If AI is worsening the customer experience, that’s a compliance risk,” White says. “Compliance officers need to have mechanisms in place for capturing consumer feedback and making necessary adjustments to AI systems.”

Balancing Innovation and Compliance

One of the most significant challenges compliance officers face is balancing the need for innovation with regulatory requirements. AI offers vast potential for improving efficiency and personalization in customer interactions, but it must be used responsibly. White acknowledges that regulatory frameworks often lag behind technological innovations, but she stresses that compliance officers can’t wait for laws to catch up. “AI is evolving at a breakneck pace,” she says. “Compliance officers need to anticipate regulatory shifts and build frameworks that are adaptable to new requirements.”

She points out that AI’s rapid development means that regulators will continue to evolve their approach. “AI is unlike any other technology we’ve seen,” White explains. “The level of investment and the speed at which AI is advancing means that regulations will inevitably follow. It’s our job as compliance officers to be proactive, not reactive.”

The Future of AI Compliance

Looking ahead, White believes that AI compliance will become even more critical as AI technologies expand into new sectors and applications. “We’re just at the beginning of the AI revolution,” she says. “In the coming years, AI will play an even larger role in how companies interact with consumers, manage data, and deliver services. Compliance officers need to be ready for that shift.”

In preparation for future regulatory changes, White advises compliance officers to stay engaged with industry developments and participate in regulatory discussions. “It’s essential to stay informed about the latest trends in AI regulation and to engage with industry groups that are shaping the future of AI governance,” she says. “By staying ahead of the curve, compliance officers can help their organizations navigate the complexities of AI while maintaining consumer trust and regulatory compliance.”

Building AI Compliance for the Future

AI compliance is a rapidly evolving field, but with the right strategies, enterprise-level compliance officers can stay ahead of the curve. By building transparency into AI systems, conducting thorough risk assessments, and implementing strong governance frameworks, compliance officers can ensure that their organizations are prepared for the future of AI regulation.

As Laura White concludes, “AI is here to stay, and it’s only going to become more integral to how we do business. Compliance officers have a vital role to play in ensuring that AI is used responsibly and ethically, while also preparing for the regulatory changes that are sure to come.”

In the fast-moving world of AI, enterprise-level compliance officers will need to stay vigilant, proactive, and flexible to ensure that AI serves the best interests of both consumers and organizations.