Artificial intelligence has moved from the innovation lab to the operating core of the modern enterprise. That shift has profound implications for corporate compliance professionals. AI is no longer simply a technology issue for the CIO, a legal issue for the general counsel, or a cybersecurity issue for the CISO. It is now a governance issue, a controls issue, a culture issue, and, most importantly, a compliance issue.

According to a new report from the Conference Board, in 2023, only 12 percent of S&P 500 companies disclosed AI as a material business risk in their annual filings. By 2025, that figure had climbed to 83 percent. At the same time, executives are enthusiastic about AIโ€™s upside, with 80 percent expecting productivity gains, while 75 percent anticipate significant workforce disruption. Those numbers frame the central challenge: Companies want the benefits of AI, but they must manage the risks with the same discipline they apply to anti-corruption, sanctions, cybersecurity, privacy, and financial controls.

Thomas Fox has practiced law for over 40 years. Tom writes the daily award-winning blog, the FCPA Compliance and Ethics blog and founded the Compliance Podcast Network. Tom leads the discussion on AI in...