AI STANDARDS 

THE NEED FOR A FRAMEWORK             

Sanjeewaka Kulathunga explains why the corporate world needs AI standards

AI has evolved rapidly from a specialised technology to a transformative force reshaping industries worldwide. From finance and healthcare, to education and manufacturing, corporations are increasingly integrating artificial intelligence into their operations, customer service and strategic decision making. 

As AI systems become more advanced however, concerns regarding ethics, transparency, privacy, bias and accountability have intensified. These challenges highlight the urgent need for global standards in AI governance and corporate responsibility.

Major corporations are adopting AI technologies, and shaping the international discussion on its regulation and ethical frameworks. Businesses recognise that without common standards, it could create fragmented regulations, legal uncertainty, reputational risks and public distrust.

AI SYSTEMS An influential example is Microsoft, which has consistently advocated for responsible AI governance and transparency. 

It established its Responsible AI Standard to guide the ethical development and deployment of artificial intelligence systems across its operations – it emphasised fairness, safety, reliability, privacy, inclusiveness, transparency and accountability. 

Microsoft also publicly supported government led AI regulation in regions such as the EU and US. Through collaboration with policymakers and universities, it demonstrated how corporations can actively participate in shaping global artificial intelligence norms.

Google introduced its AI Principles after criticism regarding the potential military use of its technologies. Those principles commit it to avoiding harmful applications and promoting socially beneficial artificial intelligence development. 

Its internal ethical review systems reflect the growing understanding that AI governance must include social responsibility and human rights considerations, rather than technical innovation alone.

The financial sector also illustrates the importance of global AI standards. 

JPMorgan Chase uses it extensively for fraud detection, risk management and customer analytics. However, artificial intelligence systems trained on biased historical data may unintentionally reinforce discriminatory lending practices. 

To address this issue, financial institutions are increasingly implementing explainable AI systems that allow regulators and auditors to understand how decisions are made. International standards could help ensure fairness and consistency across multinational financial operations.

In healthcare, AI raises even more sensitive ethical concerns. 

IBM developed Watson Health (now Merative) with the goal of transforming medical diagnosis and treatment recommendations. Although the project faced operational challenges, it emphasised the importance of accuracy, transparency and validation in artificial intelligence healthcare systems. 

HUMAN RIGHTS Meanwhile, the motor industry has also shown the need for unified AI regulations. Tesla and Toyota are investing heavily in autonomous driving technologies that are powered by artificial intelligence. 

However, diverse safety regulations in countries complicate the global deployment of self-driving vehicles. A shared international framework for AI safety testing, cybersecurity and liability allocation will support innovation and protect users.

Beyond individual corporations, international organisations are actively working towards broader artificial intelligence governance frameworks. The OECD introduced AI Principles that promote trustworthy and human centred artificial intelligence. 

Similarly, UNESCO adopted recommendations that focus on human rights, sustainability and inclusiveness in the development of AI. These frameworks increasingly influence corporate governance models and national regulations worldwide.

One of the most significant recent developments is the EU Artificial Intelligence Act, which classifies AI systems according to risk levels. And high-risk applications in areas such as healthcare, law enforcement and employment will face stricter compliance requirements. 

COLLABORATION Many multinational corporations are already adjusting their AI governance strategies to align with these regulations because of the importance of the European market. 

Similar to the impact of the General Data Protection Regulation (GDPR) on privacy regulations, the EU AI Act may become a global benchmark for artificial intelligence governance.

Corporate collaboration has also become central to AI standardisation efforts. In 2023, leading technology firms launched cooperative initiatives to promote safe and responsible artificial intelligence development. These efforts aim to show that AI governance is a social responsibility and business necessity.