Key AI Terms for risk professionals

The deployment of new AI technologies and solutions is rapidly redefining best practice in 21st century strategic risk management. Driven by AI, a new wave of digitalisation across industries is not only revolutionising the efficiency of operational planning, threat detection and management of complex contextual change – it is also revolutionising strategic decision making and enterprise value creation from the ground up.

As at the time of publication, the advent of easily-accessible and scalable Gen AI technologies has already fundamentally shifted the use case for AI integration across business functions for many organisations from being a future-focussed activity to a new strategic imperative. And as demand surges for new and emerging AI-driven solutions to complex organisational problems, it is likewise now a strategic necessity for all those involved in proactively advising on, monitoring and managing strategic risk profiles to have an effective working knowledge of key concepts relating to AI systems.

This glossary is intended to serve as a valuable and practical resource for strategic risk professionals and business executives alike, providing a concise and easily digestible summary of essential concepts and considerations related to AI within the context of organisational decision making and strategic risk management. By ensuring they are equipped with a working knowledge of AI terminology, risk managers across all disciplines can better navigate the complexities and potential risks associated with the adoption and deployment of AI systems.

Ultimately, this glossary aims to serve as a reference guide, offering a digestible summary of key AI terms, use cases, and strategic considerations. As investments AI-driven solutions continues to evolve at a rapid pace, alongside ongoing changes in a global regulatory environment currently best characterised by its uncertainty, the Special Interest Group will continually review and update this publication in line with emerging trends and contextual changes.

This publication therefore represents a first step in the ongoing journey to support risk professionals with practical knowledge on AI integration in risk management, and the insights required to effectively engage with both the opportunities and risks AI technologies bring for their organisations.