AI regulation is coming: Here's why you need to start preparing now

Artificial intelligence (AI) has transformed industries and interactions with technology, but it faces challenges such as inaccuracies, bias, and complexity, which are addressed in the recent U.S. Executive Order (EO) on AI. This EO, introduced on October 30, 2023, aims to ensure the responsible development and use of AI by setting guidelines centered on safety, security, privacy, transparency, accountability, fairness, and inclusion. It calls for the creation of unified standards by the National Institute of Standards and Technology (NIST) and places emphasis on AI observability practices to manage risks, enhance transparency, and ensure compliance with emerging regulations. Software companies are urged to adopt proactive measures, such as monitoring AI systems for performance and bias, to align with the new regulatory landscape and support innovation while maintaining ethical standards. While the EO primarily targets large AI vendors, smaller startups are encouraged to optimize models to avoid compliance challenges as requirements evolve. The EO represents a pivotal shift towards unified AI regulation, urging businesses to integrate observability for better compliance, innovation, and responsible AI use.