AI

Six Opportunities for CIOs in the AI Adoption Race

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CIOs can seize six strategic opportunities in AI adoption:

  1. Enabler of Transformation: Shift from owning AI to orchestrating business alignment.
  2. Enterprise Integration: Upskill and harmonize IT and business for seamless collaboration.
  3. Responsible Innovation: Establish frameworks for safe, scalable GenAI implementation.
  4. Scaled AI Delivery: Move from isolated projects to a cohesive AI portfolio.
  5. Data Governance: Lead data strategy and ownership across the organization.
  6. Inspire Reinvention: Collaborate with leadership to guide AI-driven transformation.

Successful AI adoption requires top-level support and cross-functional teamwork, emphasizing AI as a strategic organizational change rather than a tech-only project.

https://knowledge.insead.edu/operations/six-opportunities-cios-ai-adoption-race

AI Drives Cyber Strategies, Security Execs Say

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AI is now a primary concern for cybersecurity executives, surpassing traditional threats like ransomware. A recent report shows that 30% of leaders prioritize AI-related privacy and security issues. While many companies have adopted AI use policies, the technology's security solutions often underperform due to high false positive rates. Executives stress the importance of addressing basic vulnerabilities rather than focusing solely on AI risks, highlighting that staff training on common threats remains a cost-effective strategy for improving resilience.

https://www.cybersecuritydive.com/news/ai-security-risks-executives-survey/748664/

Transparency, Good Data and Documentation: How HR Can Navigate the EU AI Act

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HR must adapt to the EU AI Act, which oversees workplace AI, particularly high-risk applications impacting health or employment. Transparency in data collection and vendor practices is crucial, as is understanding AI's risks and documentation requirements. DPIAs are essential for justifying AI use, ensuring compliance under GDPR and the AI Act. Effective anonymization of training data is critical, and HR should continuously evaluate AI tools for robustness, keeping ethical data handling at the forefront.

https://iapp.org/news/a/transparency-good-data-and-documentation-how-hr-can-navigate-the-eu-ai-act

As Klarna Flips From AI-first to Hiring People Again, a New Landmark Survey Reveals Most AI Projects Fail to Deliver

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Klarna, after relying heavily on AI for customer service, is shifting back to hiring humans due to AI's “lower quality” results. CEO Siemiatkowski stated they need human agents for better customer support. An IBM survey found that only 25% of AI projects succeed as expected. Klarna aims to improve service quality while still maintaining an AI-first strategy, planning to offer flexible freelance roles for customer support.

https://fortune.com/2025/05/09/klarna-ai-humans-return-on-investment/

78% of CISOs See AI Attacks Already

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78% of CISOs report encountering AI-driven attacks, as cybersecurity evolves with AI tools. Darktrace's survey reveals 74% view AI as a current threat, with rising sophistication in phishing and malware. While there’s a personnel shortage in cybersecurity, 95% believe AI can enhance defense efficiency. However, only 42% fully understand their AI cybersecurity tools, highlighting a need for clarity and effective integration in defenses against emerging threats.

https://www.theregister.com/2025/05/16/cisos-report-ai-attacks/

Prohibited AI

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TLDR: EU AI Act, effective August 2024, prohibits harmful AI practices: subliminal manipulation, social scoring, and biometric tracking in public. Compliance requires assessing current AI uses, screening future applications, and maintaining an efficient governance framework. Focus on high-risk, prohibited cases and leverage existing compliance processes to ensure adherence.

https://www.tlt.com/insights-and-events/insight/prohibited-ai—taking-a-practical-approach-to-compliance/

The Fine Print of AI Hype: The Legal Risks of AI Washing : Clyde & Co

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AI washing poses legal risks as companies exaggerate AI capabilities amid vague definitions in the EU's AI Act. Legal clarity is essential but increases scrutiny, with potential penalties for false claims. Companies face liability for misleading assertions to investors and customers. Developing accurate communications and verifying AI claims are crucial to mitigate legal repercussions.

https://www.clydeco.com/en/insights/2025/05/the-fine-print-of-ai-hype-the-legal-risks-of-ai-wa

Developers Prepare for Uncertainty, Look to Prior Regulations With AI Act Coming Online

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Developers are braced for uncertainty as the EU AI Act is enacted, acknowledging that evolving compliance strategies will be necessary due to ambiguities in the regulatory landscape. Experts emphasize adapting governance frameworks while recognizing the gradual implementation of regulations. Companies with prior regulatory experience, particularly in data compliance, are better positioned to navigate the Act's requirements, while the finalization of a general-purpose AI Code of Practice remains delayed. The European Commission is exploring simplifications to the Act to ease compliance for businesses.

https://iapp.org/news/a/developers-prepare-for-uncertainty-look-to-prior-regulations-with-ai-act-coming-online

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