The Crucial Role of GRC for AI-Powered Enterprises 


As AI drives innovations and streamlines business operations, it brings diverse complexities and considerations. Balancing the power of AI with the meticulous oversight of GRC is more crucial than ever.

This article will help you understand how these twin forces are transforming businesses and the significance of their interlaced relationship.

You’ll learn from the foundations of AI and GRC to how different countries are regulating the use of AI to how you can ensure responsibility in the use of this technology.

Let’s get started!

Table of Contents

Artificial Intelligence and GRC

In recent months, the enterprise landscape has seen a transformative shift with the rapid integration of generative Artificial Intelligence (AI). Companies worldwide use AI to enhance productivity, streamline problem-solving, and drive innovation. 

It’s jaw-dropping! And it makes all of us quite excited.  

While the transformative power of AI has certainly ignited our productivity, it has also put more eyes on the GRC Professionals.  


Because artificial intelligence has renewed the focus on Governance, Risk, and Compliance practices, especially when ensuring transparency, accountability, and data protection. 

As AI disrupts software development, SaaS operations, and even Sales and Marketing, it leaves us with questions that lead straight to privacy and information security concerns

AI’s Expanding Horizons 

Let’s discuss how AI has revolutionized any software company’s operations. We start with this because understanding the different use cases will be critical for our future endeavour — to improve AI governance.  

From the development arena to marketing strategies, AI has proven to be a game-changer.

Let’s review some examples: 

Development: According to a study from DevTech Insights, AI-driven code suggestions have led to an impressive 50% increase in developers’ efficiency. Imagine an AI partner offering code snippets as you type, simplifying syntax difficulties. Developers are also generating extensive code sections based on a single prompt. It’s like having an AI assistant translating your vision into code snippets. 

Marketing: In Marketing, AI has become a reliable compass for decoding customer preferences. Reports highlight a remarkable 73% surge in conversion rates for businesses leveraging AI-powered customer insights. The use of AI-driven chatbots has improved the ability of any given organization to be available around the clock without any extra cost. 

Information Security: Vulnerability scan and managing systems can quickly filter a labyrinth of data, identifying vulnerabilities with unprecedented accuracy and speed. AI’s pattern recognition and anomaly detection capabilities serve as an invaluable compass, guiding security teams to potential weak points that might otherwise remain hidden. As a result, organizations can proactively address vulnerabilities, shore up defences, and protect digital infrastructure.   

This all sounds awesome, right? 

Well, it is, indeed. But only if you take good care of how your employees use AI’s magical powers. It is not about forbidding the use of AI but creating the appropriate controls to address potential risks.

The Pillars of AI Governance, Risk, and Compliance (GRC) 

Forward-thinking enterprises operating under strict privacy regulations and information security standards, such as ISO 27001, SOC 2, and NIST 800-53, shouldn’t see all these standards as roadblocks to the use of AI.  

For GRC professionals, a few things will resonate:  

  • Ethical considerations 
  • Contractual requirements regarding the purpose of use of data  
  • Data protection requirements 
  • Security Protocols 

This is why organizations deploying AI might get a bit lost on how to use technology and still keep a solid governance strategy. To help you with that, consider the following.

An AI Governance Program should include at least: 

  • Organizing an AI task force with representatives from different departments. 
  • Listing AI use cases and performing a risk assessment. 
  • Creating corrective action plans to respond to identified risks. 
  • Identifying which internal Policies and Processes might be impacted by the use of AI. 
  • Prioritize based on risk (believe me, if you don’t prioritize, this can become a full-time job). 
  • Documenting a Policy and training people. 
  • Based on the company-wide policy, start crafting guidance for each department on their individual use of AI. 

Privacy Regulations and Information Security Requirements 

Integrating AI within a GDPR-regulated software landscape presents significant challenges to data protection principles. The complex algorithms used in AI-driven systems may confuse the transparency GDPR requires.

This may cause the decision-making process to be less interpretable and potentially impede individuals’ rights to understand, contest, and question automated decisions.  

Embedding generative AI in a SaaS solution might also hurt the purpose of processing detailed in the original agreement and the data deletion policy. 

Many countries are already working to set the ground rules for using AI regarding how it impacts their citizens. A few examples are: 

Traditional information security standards also give us a few important tools to govern the use of AI internally: 

  • ISO 27001:2022 presents clauses that require: 
    • Planning and controlling changes 
    • Performing risk assessments for any given change that might impact the information security management system
    • Controlling externally provided services (from a risk perspective) 
    • SOC 2 Security Principals have similar requirements, and its controls are helpful when efficiently implemented, especially when it comes to change management in software development

Laying Ground Rules: AI Acceptable Use Policies 

Implementing an Acceptable Use of AI Policy to dictate how to use AI in the context of your organization is a critical step in ensuring the responsible use of technology. In order to do that, the first step is to leverage particular risks and AI use cases.  

The Policy itself can have a well-known structure to avoid pitfalls; here is what to do: 

  • Introduction: The main components of the initial paragraph are probably to explain why governing AI is essential for your organization and how you define AI. Artificial Intelligence is a broad term that can become very technical and hard to understand. Make sure the explanation is clear and concise. Use examples.   
  •  Responsible Use of AI: From Ethical Considerations to Privacy and Data Security. AI tools must be designed and used in compliance with applicable privacy laws and data protection regulations. Any data used for training AI models should also be aligned with contractual requirements.  
  • Compliance with Regulations and Standards: All AI applications must adhere to relevant industry standards and regulations, including but not limited to GDPR, HIPAA, and other data protection laws. Respect for intellectual property rights extends to AI models and algorithms. Unauthorized use of third-party AI technologies or data must be prohibited (including customer data when there is no consent). 
  • Reporting and Accountability: Explain how to report potential breaches of the policy and the possible consequences of non-compliance. 
  • Approved tools: Including a list of approved platforms that provide AI services or have AI embedded is a great way to wrap the policy up. 

Building the Path to Responsible AI Advancements

In the dynamic world of AI-driven transformation, the complex interplay between innovation and responsible governance emerges as a cornerstone for success. 

As we navigate the captivating realm of generative AI, its remarkable potential to enhance productivity and ignite creativity becomes evident. However, the guardianship of Governance, Risk, and Compliance (GRC) professionals remains crucial, as they ensure transparency, accountability, and data security — particularly in a landscape governed by regulations like ISO 27001, SOC 2, and NIST 800-53.

The fusion of AI and GRC principles amplifies efficiency and decision-making across domains like software development, marketing, and information security. While the appeal of AI’s capabilities is undeniably enchanting, GRC’s meticulous oversight ensures its responsible and ethical utilization.

This article underscores the pivotal role of GRC in navigating the intricate terrain of AI-powered enterprises, facilitating a harmonious blend of innovation and compliance while safeguarding data privacy, fostering transparency, and fostering a future where technological wonders thrive within ethical bounds. 

Key Takeaways

  • The rapid integration of AI has significantly enhanced enterprise productivity, leading to a renewed focus on GRC.
  • AI’s penetration into domains like software development, marketing, and information security needs stringent governance to ensure data privacy and ethical use.
  • GRC professionals play a pivotal role in guiding businesses on their AI journey, ensuring they comply with privacy regulations and information security standards.
  • Establishing an AI Governance Program, integrating AI with GDPR, and implementing AI Acceptable Use Policies are essential to navigating the AI-GRC landscape.
  • Merging AI advancements with GRC guidelines ensures responsible, transparent, and ethical deployment of AI technologies across sectors.

Looking for Better Compliance?

Track compliance to multiple frameworks simultaneously, including SOX, HITRUST CSF, GDPR, CCPA, and FedRAMP, and manage the entire risk and compliance lifecycle with a single tool.

While the vast landscape of AI might be overwhelming, ensuring compliance and governance shouldn’t be. At StandardFusion, our expertise lies in simplifying and fortifying your GRC efforts.

Whether you’re delving into AI or managing other transformative technologies, we ensure that your compliance framework remains robust and responsive.

Connect with our team and learn how StandardFusion can become your cornerstone for a robust, simple, and scalable GRC solution for your organization.