UK Trends and Developments Contributed by: Amélie Chollet, Hannah Curtis and David Dennis, CMS
rely on historical data and predictable patterns, must be supplemented with scenario planning and stress testing for novel risk combinations. The Strategic Response: Beyond Risk Management to Risk Intelligence In any organisation, the legal function’s response to AI cannot simply be defensive. In an environ- ment where AI-related legal risks are evolving faster than traditional risk management frame- works can adapt, legal teams must develop what might be called “risk intelligence” – the ability to identify, analyse and respond to emerging risks in real-time. This requires legal teams to not only enhance their knowledge and understanding of AI tech- nology but to also develop a dynamic approach to risk assessment, and to adapt strategies in their communication with leadership about evolving risk landscapes.
The organisations that successfully navigate the AI transformation will be those whose legal func- tions evolve from risk managers to risk strate- gists – helping management make informed business decisions about AI adoption while building adaptive compliance capabilities that can evolve with the technology and regulatory landscape. The future belongs to legal departments that can help their organisations harness AI’s transforma- tive potential while building sophisticated, adap- tive approaches to managing the novel risks that come with that transformation.
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