DLA Piper releases its seventh episode of its Accelerate YouTube series, focusing on the importance of establishing an AI governance framework. The episode, led by Linzi Penman, a technology partner in DLA Piper’s Edinburgh office, delves into how organisations can effectively navigate the risks and opportunities posed by artificial intelligence.
Linzi Penman discusses the dual nature of AI, which offers significant innovation potential but also introduces complex risks. She emphasises the need for a governance framework that can balance these elements, ensuring that organisations can utilise AI technologies without compromising on compliance and ethical standards.
According to Penman, the key is to integrate AI governance into the broader compliance programme of the organisation, a strategy that helps manage risks more effectively while fostering an environment conducive to innovation.
“AI governance should be at the heart of your compliance programme,” Penman states.
“We’ve been working closely with clients to understand the unique risks AI poses and how to deploy it in a manner that truly fosters innovation while embracing the change it brings.”
A comprehensive approach to AI governance
Penman outlines a five-pillar governance framework that DLA Piper uses to assess and manage the risks associated with AI across its lifecycle. This framework includes considerations for employment, litigation, technology, data protection, and stakeholder engagement. She stresses that understanding these elements in the context of AI is crucial for organisations to build a governance strategy that aligns with their risk appetite and business objectives.
The episode also addresses common concerns, such as whether to adopt a top-down or bottom-up approach to AI governance. Penman advocates for a balanced strategy, stating that
“We’ve asked clients to meet us in the middle and tackle it in both ways it’s very difficult to review an AI policy when we don’t understand what the board and the exec want to set the risk appetite as once we know that we can deploy it in a way that makes sense for the business based on specific use cases we’re looking at AI through five pillars of risk and how those risks transpire at the different points of the AI life cycle it’s really important to remember that cyber risk.”
This approach ensures that AI policies are aligned with both executive risk appetites and operational realities, making it easier to implement AI technologies in a controlled and compliant manner.
Integrating existing frameworks with AI governance
DLA Piper’s approach to AI governance involves integrating existing regulatory frameworks, such as GDPR and operational resilience compliance programmes, into the AI governance strategy. Penman notes that many controls already exist within these frameworks and that the challenge often lies in adapting them to the specific nuances of AI. She highlights the importance of understanding how data will be used and ensuring that these practices are aligned with the organisation’s existing policies.
“We’re also helping to guide clients to understand what’s net new versus what’s nuanced for AI there’ll be so many controls that we already have and we’ve worked with people through GDPR compliance programs operation resilience compliance programs and often it’s a case of breaking down the buzzwords and understanding what has to be uplifted it’s not a case of saying you can never use personal data to train an AI model that’s going to really inhibit your growth and Innovation,” Penman explains.
Penman concludes by emphasising the collaborative nature of AI governance. She advises that responsibility should not rest with a single department but should be shared across various stakeholders, including technology, legal, and compliance teams. This collaborative approach ensures that all relevant perspectives are considered, and the governance framework is robust and effective.
About DLA Piper
DLA Piper, established in January 2005, is a global law firm created through the merger of Gray Cary Ware & Freidenrich LLP, Piper Rudnick LLP, and DLA LLP. Operating under a Swiss Verein structure, it includes DLA Piper International LLP in the UK and DLA Piper LLP (US) in the United States. The firm’s origins trace back to four historic firms: Dibb Lupton Broomhead, Alsop Stevens, Piper & Marbury, and Rudnick & Wolfe.
Over the years, DLA Piper has expanded significantly, establishing a strong global presence with approximately 4,300 lawyers in over 90 offices. The firm also launched its blockchain-based tokenisation platform, TOKO, in 2023.
The firm has consistently been ranked among the top global law firms by legal directories such as Chambers and Partners and Legal 500. DLA Piper was named Law Firm of the Year in various practice areas, including Real Estate and Intellectual Property, by different industry bodies.
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