AI governance can help companies across sectors reduce cybersecurity risks

Canada's securities regulators recently issued updated cybersecurity guidance after conducting an extensive review of some financial firms' practices involving the use of AI models.  

As reported in a recent article in the Globe and Mail, the Canadian Securities Administrators, a national organization that includes provincial and territorial securities regulators, identified a number of areas where practices should be strengthened to protect against cybersecurity risks posed by new AI models.  

Alarmingly, the regulators found that most firms had written policies and procedures that could be improved, while some firms had no written policies at all. While the review included firms registered as investment fund managers and the like, the findings and guidance are applicable to companies across industries to protect their innovation.

Companies are increasingly investing significant time and money innovating, to produce new ideas, products, processes and technologies that leverage AI models. Securing intellectual property (IP) allows them to protect and commercialize those AI-related innovations (for some helpful advice read our do's and don'ts for AI inventions).  

However, the use of AI models in business processes can also increase the commercial risk of cyber attacks and vulnerabilities on systems and procedures, and thus risks of theft and leaks. This is where written policies and procedures governing the use of AI can strengthen cybersecurity by establishing clear and consistent rules that are designed to protect a company's confidential information, business systems and IP.  

Our new AI, Cyber Security and Data practice, led by Fiona Phillips and Eleonor Duhs, helps business leaders and general counsel navigate these risks. They have recently published a top-10 list of practical recommendations for managing AI opportunities and data risks that are particularly useful for companies operating in a rapidly changing regulatory environment. You can read the article here: https://www.marks-clerk.com/insights/latest-insights/102n1ac-the-beginners-guide-to-ai-governance/. 

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The CSA found that 55 per cent of firms’ written policies and procedures could be improved, while 8 per cent of the firms had no written policies at all. Because the cyber threat landscape is rapidly evolving, [it said] firms should review and update their written policies at least annually. [alt] Organizations in sectors ranging from financial services to critical infrastructure have been marshalling resources in preparation for a new breed of cyberattacks enabled by AI models which have proven adept at identifying and exploiting software vulnerabilities.

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