AI Systems Adoption: Finding A Balance In Regulated Industries

Innovation has historically been driven by companies in regulated industries—e.g., financial services and health care—and some of the most intriguing use cases for generative AI systems will likely transform these industries.

At the same time, regulatory scrutiny could significantly hamper AI adoption, despite the current absence of explicit regulations against the use of AI systems. Regulators are likely going to focus on confidentiality, security and privacy concerns with generative AI systems, but other issues could arise, as well. Companies operating in key regulated industries appear to be anticipating regulatory scrutiny, which is why adoption of the newest generative AI systems will likely be slow and deliberate. However, in some cases, AI systems are being outright banned.