Navigating the compliance maze in AI development

As AI reshapes many industries, the balance between innovation, security, and compliance has become paramount, especially in regulated sectors.
Kathryn Lye
Head of Marketing
Published 6 October 2023

As Artificial Intelligence (AI) continues to reshape numerous industries, the balance between innovation, security, and compliance has become paramount, especially in regulated sectors like healthcare and finance.

The power of federated learning (FL)

Federated Learning offers a way for developers to perform computations on crucial data without moving it from its source. This "data-stays-local" approach provides:

  • Improved security: Reduces the risk of unauthorized access by minimizing data movement.

  • Regulatory compliance: aligned with data protection standards like GDPR, CCPA, and HIPAA which have strict requirements over data transfer and handling.

  • Data integrity: by keeping data in its original environment, quality and metadata are maintained.

  • Data minimization: Only essential insights or model updates are communicated, adhering to data minimization principles.

  • Data custodian trust: By maintaining data control, a data custodian’s willingness to participate in ML projects improves.

  • Real-world training: Ensures models are trained on genuine data distributions, boosting performance.

Strengthening FL with robust governance

For FL to achieve its full potential in regulated domains, strong governance mechanisms are essential:

  • Granular access controls: data custodians can specify access details and computational types.

  • Audit trails: enables tracking of data access and utilization for accountability.

  • Privacy controls: Incorporate technologies like differential privacy to protect individual data points.

  • Model approval and monitoring: rigorous processes to validate models before they access data, and continuous monitoring afterward.

  • Policy adjustments: flexibility to update policies without overhauling the system.

  • Model card catalogs: simplifies understanding of each model's privacy and security implications.

In essence, combining governance with FL forms a strong framework for AI development that respects privacy while encouraging innovation.

Model memory: an overlooked challenge

AI models can inadvertently retain specifics from their training data, creating potential compliance pitfalls. Unauthorized parties might extract personal records or even identify individuals based on the model's behavior. Addressing this involves:

  • Data minimization: limit data exposure by processing only what's essential.

  • Privacy technologies: tools like differential privacy can protect sensitive information during the training phase.

  • Model audits and retraining: Monitor models for data leakage and set procedures for updates considering “right to erasure” requests.

  • Regular purging: regularly update models to discard unnecessary data.

Prioritizing data custodians

Successful FL initiatives involve a partnership between ML product teams and data custodians. Products like Apheris come equipped with:

Model Registry: detailed model evaluations and privacy assessments.

Governance Portal: helps data custodians maintain control at the computation level, including audits, and human-in-the-loop approvals.

Trust Center: a go-to source for best practices in this complex regulatory space.

Engaging data custodians ensures access to siloed data, laying the foundation for improved AI products.

With Apheris, data residency requirements are met while computational governance ensures security and that only privacy-preserving results are shared.

Blending innovation with compliance in AI

Balancing innovation with compliance is the way forward. By integrating federated learning with a strong governance layer, organizations can push AI boundaries responsibly. The key is collaboration between ML teams and data custodians, all with an eye on compliance. In our evolving regulatory world, a well-thought-out FL approach ensures organizations can harness their data assets for AI that is innovative, compliant, and trusted.

Learn more about mastering the compliance challenges in AI.

Computational governance
Machine learning & AI
Federated learning & analytics
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