AUDITING GenAI SYSTEMS: ENSURING RESPONSIBLE DEPLOYMENT

David Krause () and Eric Krause
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David Krause: Marquette University, Postal: 1530 W Wisconsin Ave, Milwaukee, WI 53233, https://www.marquette.edu/business/
Eric Krause: Bentley University, Postal: 75 Forest St 295, Waltham, MA 02452, https://www.bentley.edu/

Journal of Financial Transformation, 2025, vol. 60, 20-27

Abstract: The emergence of generative artificial intelligence (GenAI) systems, capable of autonomously generating diverse content, is reshaping industries while raising concerns about biases, misuse, and errors. Auditing can play a crucial role in ensuring the responsible deployment of GenAI. This discussion examines the critical importance of auditing in mitigating risks and building user confidence. Recent regulatory frameworks, such as the E.U.’s Artificial Intelligence Act and New York City’s Bias Audit Law, underscore the necessity of audits for high-risk AI systems, focusing particularly on fairness and data integrity. Internally, organizations benefit significantly from conducting audits to pinpoint biases and vulnerabilities, thereby upholding ethical standards and compliance. Traditional audit ¬ rms encounter challenges due to the intricate nature and rapid advancement of AI technologies. Nevertheless, they can adapt by enhancing their expertise and collaborating closely with AI specialists. In conclusion, rigorous auditing practices are essential for navigating regulatory environments, mitigating risks, and ensuring the ethical and dependable integration of GenAI systems, fostering positive societal impact.

Keywords: Auditing (search for similar items in EconPapers)
JEL-codes: M42 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jofitr:3479

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