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.