What is AI Risk Assessment

Definition

AI risk assessment is the structured evaluation of an AI system to identify and rate the risks it poses, such as bias, errors, security, privacy, and societal impact, so appropriate mitigations and controls can be put in place before and during deployment.

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Identifies and rates an AI system’s specific risks before deployment
Prioritises mitigations based on likelihood and impact
Supports compliance with risk-based AI regulation
Informs whether and how an AI system should be deployed

Real World Example

Before deploying a recruitment tool, a company conducts an AI risk assessment rating bias, error, and legal risks as high, leading it to add fairness testing, human review, and monitoring as required mitigations.

FAQs

What does an AI risk assessment evaluate?

The risks an AI system poses, such as bias, errors, security, privacy, and societal impact, and their likelihood and severity.

When should AI risk assessment happen?

Before deployment and periodically afterward, as part of responsible AI and risk management.

How do regulations use risk assessment?

Risk-based AI regulations require higher-risk systems to undergo stricter assessment and controls.