AI Automation Policy
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Common Compliance Questions
Q: What is an automation policy?
It is a corporate policy defining the boundaries, oversight, and ethical rules for using AI to automate tasks.
Q: Does automation require human-in-the-loop oversight?
For high-risk decisions (like hiring, firing, or credit scoring), human oversight is legally required under modern AI acts.
Q: How does an automation policy limit business liability?
It sets clear guidelines on who is responsible when automated decisions go wrong or cause financial loss.
Q: What is the difference between simple automation and cognitive AI automation?
Simple automation follows rigid rules, while cognitive AI uses probabilistic models that can produce unexpected outcomes.
Q: How often should automated systems be audited?
At least annually or whenever the underlying machine learning model receives a significant update.
Q: Should employees be trained on automated systems?
Yes, training ensures employees understand model bias and know when to override automated recommendations.
Q: What is profiling in AI automation?
Analyzing user behavior to predict choices, which requires explicit user consent under privacy laws.
Q: How does the EU AI Act affect automated systems?
It categorizes automated systems by risk level and bans certain practices, such as social scoring.