Guiding Legal Professionals Through AI's New Era: Leveraging The NIST Framework For Effective AI Governance
In-house lawyers are in a unique position to leverage the NIST AI RMF, embedding its principles in their organizations' AI projects.
The accelerating pace of AI development has magnified the importance of in-house lawyers in guiding AI governance and risk management. The National Institute of Standards and Technology’s AI Risk Management Framework (NIST AI RMF), a landmark document released in January 2023, stands as a critical resource. It diverges from the legally binding EU AI Act by offering a voluntary framework to cultivate trust and innovation in AI technologies and mitigate risks.
In the United States, the NIST AI RMF’s self-regulatory and soft law approach contrasts starkly with the European Union’s stringent AI governance model, particularly concerning high-risk AI systems under the EU AI Act. This framework is tailored to assist organizations of various sizes in managing the broad spectrum of risks inherent in AI, focusing on developing AI systems that are reliable, secure, transparent, and free from harmful biases, among other trustworthy characteristics.
The framework is comprehensive, encompassing two main parts. Firstly, guiding organizations in identifying AI-related risks and defining trustworthy AI systems. Secondly, it focuses on four critical functions — governance, mapping, measurement, and management. Notably, governance is crucial, establishing structures for accountability, diversity, and safety-first AI practices.
In-house lawyers are in a unique position to leverage the NIST AI RMF, embedding its principles in their organizations’ AI projects. Familiarizing with the framework’s functions, categories, and subcategories is key to effectively identifying and managing AI risks. Additionally, the NIST provides a detailed Playbook for practical implementation, allowing customization of the framework according to specific organizational needs and objectives.
The NIST AI RMF offers a structured path to robust AI governance for legal teams. By adopting the framework, legal professionals can effectively navigate AI complexities, making informed decisions and fostering an environment of ethical AI use. This approach positions their organizations as leaders in responsible AI utilization.
The AI governance landscape is expected to evolve, likely moving toward more comprehensive, globally harmonized regulations. Legal professionals must stay informed and adaptable, ready to meet the increasing demand for specialized AI ethics and governance expertise. Moreover, as AI becomes further integrated into legal processes, in-house lawyers will play a pivotal role in shaping how AI influences law practice, ensuring compliance, and leveraging AI governance advancements.
In summary, the NIST AI RMF is an invaluable tool for in-house lawyers, offering a versatile, guidance-based approach to navigating AI risks responsibly. By utilizing this framework, in-house lawyers can guide their organizations toward ethical AI practices, ensuring compliance and securing a competitive edge in the rapidly evolving AI domain.
Olga V. Mack is a Fellow at CodeX, The Stanford Center for Legal Informatics, and a Generative AI Editor at law.MIT. Olga embraces legal innovation and had dedicated her career to improving and shaping the future of law. She is convinced that the legal profession will emerge even stronger, more resilient, and more inclusive than before by embracing technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She authored Get on Board: Earning Your Ticket to a Corporate Board Seat, Fundamentals of Smart Contract Security, and Blockchain Value: Transforming Business Models, Society, and Communities. She is working on three books: Visual IQ for Lawyers (ABA 2024), The Rise of Product Lawyers: An Analytical Framework to Systematically Advise Your Clients Throughout the Product Lifecycle (Globe Law and Business 2024), and Legal Operations in the Age of AI and Data (Globe Law and Business 2024). You can follow Olga on LinkedIn and Twitter @olgavmack.
