BAKU, Azerbaijan, October 20.
Artificial intelligence(AI) creates new compliance risks in
business, Chairperson of the Management Board of the Compliance
Association Public Union and Director of the Legal and Government
Relations Function at PASHA Holding LLC, Aytaj Gasimova, said
during a conference on Sustainable Business, Corporate Governance,
Risk, and Compliance (GRC) in Baku today, Trend’s correspondent
reports from the event.
She remarked that in the modern era, compliance is not limited
to the function of overseeing adherence to legislative
requirements; rather, it serves as a strategic management mechanism
that safeguards the transparency, sustainability, reliability, and
reputation of a business.
According to her, the concept of compliance has evolved
significantly over time and now plays a crucial role in business
management.
"Compliance has undergone a long evolution. In the modern era,
this concept goes beyond merely adhering to laws and regulations.
It also encompasses making sound decisions, proactively identifying
risks, upholding ethical values, and strengthening trust in the
business," she noted.
Gasimova pointed out that the issues arising in the field of
compliance have recently become more complex and multifaceted.
Investors now consider not only a company's financial performance
but also its corporate governance system, the effectiveness of its
risk management, and the principles guiding its business
operations.
She emphasized that the rapid advancement of technology is
fundamentally transforming the business environment. Processes such
as digitalization, along with the proliferation of cryptocurrencies
and other virtual assets, create new opportunities while
simultaneously introducing additional risks.
"Sometimes, the pace at which technology develops outstrips the
pace at which legislation evolves, which leads to certain
challenges. Currently, AI is one such pressing issue. The
widespread adoption of artificial intelligence and its significant
role in business decision-making raise several questions. For
instance, who bears responsibility for decisions made via AI, and
to what extent is this responsibility regulated by law?" she
said.
According to Gasimova, a weak or absent compliance system
hinders a company's ability to ensure transparency, establish
effective corporate governance, and properly organize its business
operations. Therefore, compliance is of vital importance for
managing risks and maintaining trust within a company's
operations.
She also briefed on the objectives and plans of the Compliance
Association.
She announced that one of the association's primary objectives
is to bring together professionals working in this field, encourage
the exchange of knowledge and experience, and contribute to the
development of a compliance culture in Azerbaijan.
Gasimova highlighted that the association plans to expand its
activities in the future and support the study of international
best practices, as well as their application within the local
business environment. In this context, it's also planned to
establish a dedicated platform to facilitate closer collaboration
and the exchange of experience among industry specialists.
