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Conflicts of interest in auditor selection

Sub-category
Risk Domain

Inadequate regulatory frameworks and oversight mechanisms that fail to keep pace with AI development, leading to ineffective governance and the inability to manage AI risks appropriately.

"Conflicts of interest can arise if there is no independence in the auditor selection process or if the auditors are closely associated with the developer [123, 157]. In such cases, the conflict of interest can appear even if third-party evaluators are involved. In the case of external auditing, the potential candidates might be selected from a narrow group of auditors, or have conflicting financial incentives for whether to report model shortcomings publicly."(p. 23)

Part of Model Evaluations (Auditing)

Other risks from Gipiškis2024 (144)