Globally, governing entities are creating a wide array of designs for compliance. These frameworks for compliance vary from State to State and Country to Country. Experienced board members with extensive experience and expertise must navigate these constant compliance changes. We need our human intelligence to manage artificial intelligence.
Key Challenges to Address
Three Distinct Groups Must Work on AI Compliance:
- AI product developers who must meet compliance requirements;
- Management teams who decide on AI use, handle operations, and meet regulatory requirements;
- Board members who hold key duties for governance and oversight, upholding legal and regulatory compliance, and risk management;
Working independently, there is no cohesion amongst these groups. Each group operates under a different regulatory framework, responds to different stakeholders, and may interpret the same regulations differently. The board must address issues such as fiduciary duty and risk management, while managers worry about operational efficiency, and developers address technical feasibility. The expanding issues that companies and their executives face lead to an increased reliance on board members and internal committees. In addition to risk committees, some boards are adding AI and ethics committees.
Geographic Differences
In 2025, businesses have short-term and long-term growth goals. Those goals often include expansion into multiple states and multiple countries. These cross-border expansions create new challenges and regulations for companies. Operating in different locations with varying compliance regulations is time-consuming and often confusing. Board members are constantly advising and creating policies that navigate these expansive company initiatives.
Constant Change
Compliance designs are still in an experimental stage, so businesses must prepare for these constant changes. The regulations for industries and companies have fundamental requirements for evolving policies. Examples include the GDPR, the EU AI Act, and state-level privacy laws in California, Texas, and Virginia – each of which has different requirements, timelines, and interpretations.
Solutions to Improve Compliance
Group Collaboration
We recommend considering human-AI collaboration in governance. We encourage boards and management to create an AI committee that works in collaboration with the lawyer, managers, the AI product developer, and the board committee director. This collaboration provides cognitive diversity and creative solutions.
Stay Current on Global AI Compliance Research
Experts are researching and studying the compliance practices for varying industries to measure success. A clear understanding of these research results will offer guidance on the balance between AI and human input.
Reaching a Standard is a Global Goal
Varying legal systems, cultural values, and economic priorities make standardization a distant goal. Tracking policy implementations and results in varying geographic regions will get us closer to that standardization. Experiments underway help us to learn what will be most successful. The goal is not infinite regulation. It is necessary to have intelligent regulation that protects companies without paralyzing them.
Moving from Burden to Benefit
The best compliance is not the most comprehensive but the most comprehensible. If board members, managers, and developers don’t understand the rules, they can’t follow them, no matter how sophisticated their AI tools are. As AI becomes more powerful, it doesn’t replace human judgment. It makes human judgment more critical. The future of AI governance is not artificial intelligence checking on artificial intelligence. It is human intelligence ensuring that artificial intelligence serves our human needs.
Call Us For Help
This compliance work is a complex challenge. Our board governance team is here to offer guidance, advice, and support for your management and board with any questions you may have. https://www.2goadvisorygroup.com/board-governance
Donna Hamlin brings her HR expertise together with her governance experience to assist clients holistically. As, Board Governance Practice Group Leader, she is certified for global governance by Harvard university and the National Association of Corporate Directors in the U.S. The International Association of Top Professionals awarded Donna and her team as the top governance team for 2025. Contact Donna at dhamlin@chros2go.com or (510) 517-7791.
For your Talent needs in direct hire, full-time or part-time contract staffing in Board Governance, contact Executive Recruiter, Leesa Meintzer at leesa@2gorecruiting.com.
Leesa Meintzer is an executive recruiter with more than 20 years of experience in talent acquisition. She excels in partnering across various business functions and brings a comprehensive perspective to talent acquisition. She works with Engineering, Healthcare, Product, Finance, Accounting, Business Operations, Sales, Manufacturing, Human Resources, Learning & Development, and Talent Acquisition for corporate and high-growth start-ups.