Managing AI Risks: Strategies for Innovation and Security Part 2 with Alec Crawford

Managing AI Risks: Strategies for Innovation and Security Part 2 with Alec Crawford

S02E11 Alexandre Nevski 06/10/2025

Ignoring generative AI isn’t an option—but in high-risk environments, a simple ChatGPT subscription won’t cut it. True enterprise adoption demands security, governance, and a platform built for compliance. In this episode of Innovation Tales, we welcome back Alec Crawford, founder of Artificial Intelligence Risk, Inc., for part two of our conversation on AI security. This time, we dive deeper into how businesses can deploy AI safely, from on-premise security to multi-tiered authorization and real-time compliance monitoring.

Key Takeaways

AI Security and Governance Are Non-Negotiable – Enterprises handling high-risk AI applications (such as in healthcare and finance) must implement on-premise or private cloud solutions, enforce role-based access, and utilize encryption and activity logging to ensure compliance with strict regulatory requirements.
AI Regulations Are Complex and Evolving – From HIPAA in healthcare to state-specific AI laws like Colorado’s AI Act, businesses must navigate a patchwork of AI regulations. The NIST AI Risk Management Framework is emerging as a widely accepted compliance standard that simplifies regulatory alignment.
AI’s Ethical and Global Impact Matters – Beyond compliance, organizations must address AI’s broader societal implications, including job displacement and economic divides between wealthy and developing nations. The Global AI Ethics Institute plays a key role in shaping discussions around ethical AI governance and responsible innovation.

Introduction to AI Risks and Opportunities

Artificial Intelligence (AI) is reshaping industries at an unprecedented pace, bringing both game-changing opportunities and complex challenges. From streamlining automation to enhancing customer experiences, AI offers transformative benefits—but it also introduces risks that can’t be ignored. In today’s episode of Innovation Tales, we go beyond the hype and dive deep into AI risk management—exploring how enterprises can navigate this fast-changing landscape while ensuring compliance and trust.

Missed Part One? Click here to view our first conversation with Alec Crawford on AI security and risk management.

Meet Alec Crawford: AI Risk Management Expert

When it comes to AI security, compliance, and risk management, few people have as much hands-on experience as Alec Crawford. As the founder of Artificial Intelligence Risk, Inc., Alec has spent decades at the intersection of AI, finance, and cybersecurity, helping enterprises navigate the complexities of AI adoption. His company specializes in building governance frameworks that ensure businesses can scale AI securely—without exposing themselves to compliance risks or data vulnerabilities. In today’s episode of Innovation Tales, Alec shares real-world insights on how organizations can harness AI’s potential while staying in control.

Alec Crawford, AI risk management expert, shares strategic insights for secure AI adoption.

Exploring AI Security and Compliance

“So think about it as ‘single pane of glass’ access to AI across all your different AI tools, right? And because of that, that can run through the compliance system, right?”

As businesses accelerate their digital transformation, securing AI deployments has become a top priority. With increasing concerns around data privacy, cybersecurity, and regulatory compliance, organizations must ensure their AI systems are not only powerful but also protected. In today’s conversation, Alec Crawford breaks down the compliance challenges that companies face—and how his platform provides a structured approach to mitigating risks.

Challenges and Solutions in AI Deployment

“One of the tenets of cybersecurity today is, it’s not a matter of if you get hacked, but when and when you get hacked, it’s a matter of identifying that on day 0, not day 17.”

Deploying AI at scale is no small feat. While AI can drive automation, efficiency, and competitive advantage, it also introduces significant risks—from data security vulnerabilities to regulatory compliance hurdles. In today’s discussion, Alec Crawford outlines the key challenges enterprises face when implementing AI and shares practical solutions to ensure AI remains secure, compliant, and effective.

One of the biggest concerns in AI deployment is data security, especially for businesses handling consumer data, financial transactions, or healthcare records. Many AI models, such as Claude, operate as cloud-based APIs, which means companies lose visibility into how their data is stored and processed. This lack of transparency poses a major compliance risk—especially for organizations bound by strict data privacy laws. Alec highlights that on-premise AI deployments or private cloud solutions provide far greater control and ensure that sensitive data remains protected.

Beyond security, governance and access control are essential for AI risk management. Alec’s platform includes a multi-tiered authorization model, allowing businesses to assign specific roles and permissions. This ensures that AI tools are only accessible to authorized personnel, reducing the risk of data leaks, unintended bias, and compliance violations.

Alec’s AI risk management platform offers a centralized solution for monitoring, securing, and governing AI deployments. A standout feature is its ability to log every AI prompt and model change, ensuring full transparency and auditability—both critical for regulatory compliance. The platform also includes access controls that allow for security permissions.

Regulatory Landscape for AI

“The really important thing I’ve heard regulators say is just because it’s AI doesn’t mean you can break any rules, right? In other words, if you’re not allowed to have bias in lending and your AI is biased, it’s breaking the law, right?”

As AI adoption accelerates, regulatory oversight is becoming more complex and fragmented. Companies must navigate a patchwork of global regulations, with specific requirements for AI governance, risk management, and compliance. In today’s conversation, Alec Crawford breaks down the current state of AI regulations and explains how to stay ahead of evolving laws.

In Europe, AI regulations are already well-established, particularly for high-risk applications. Companies operating in the EU must obtain regulatory approval before deploying AI solutions that impact consumer rights and privacy. This process involves rigorous risk assessments and compliance procedures to meet strict transparency standards, ultimately shaping AI governance best practices.

In contrast, the United States is playing catch-up. Unlike the EU, the US has no comprehensive federal AI regulation, leaving businesses to navigate a confusing mix of state-level laws. The Biden administration attempted to introduce AI guidelines, but these have been struck down. Instead, industry-specific regulations—such as HIPAA and anti-bias laws—apply, ensuring that AI-driven decisions remain compliant.

State-level regulations are rapidly emerging, with Colorado leading the charge. In February, Colorado’s AI Act took effect. Non-compliance carries severe financial penalties, and companies must heed the NIST AI Risk Management Framework to remain compliant.

Alec stresses that the NIST AI framework is becoming a gold standard for AI risk management. While it isn’t legally binding, many regulators view it as an effective compliance approach. The framework offers guidelines on AI security and ethical considerations to help build systems that are both trustworthy and meet regulatory expectations.

For businesses looking to future-proof their AI strategies, Alec offers key advice: stay informed and proactive. With AI regulations evolving and compliance tied to trust and a reputational issue, investing in AI risk management is essential to adapt in a changing landscape.

Ethical Considerations in AI

“There are no rules about replacing people with AI at this point, right? You could literally fire 20 people and replace ’em with AI tomorrow if that were possible and with zero repercussions, right?”

As AI becomes more integrated into business processes, decision-making, and automation, ethical concerns are impossible to ignore. Questions about job displacement, data privacy, bias, and fairness force organizations to reconsider their approaches.

One of the biggest issues is the lack of regulations governing AI-driven job displacement. In many countries, there are no laws to stop companies from replacing human workers with AI. This raises questions about social responsibility and what protections should exist, especially when companies pursue cost-cutting measures.

Alec’s work with the Global AI Ethics Institute offers an international perspective on AI ethics. He highlights the widening gap between nations with access to advanced AI models and compute power versus those without, underscoring the risk of a deepening global economic divide and prompting tough ethical questions.

Global AI Ethics Institute

With AI evolving at breakneck speed, ethical guidelines and best practices are struggling to keep up. That’s where organizations like the Global AI Ethics Institute come in.

As a leading nonprofit in the AI ethics space, the institute is dedicated to fostering research and global collaboration around the responsible use of AI.

In today’s episode, Alec Crawford—who serves on the institute’s executive board—shares insights on its mission and impact.

Closing Thoughts and Future Outlook

As AI continues to evolve, one thing is clear: business leaders must remain informed, adaptable, and proactive. Throughout this episode, Alec Crawford has shared invaluable insights on AI security, compliance, and ethics—offering reflections on where AI is headed.

When asked about a book with the biggest impact, Alec recommends Ethical AI by Reid Blackman.Described as a graduate school class in AI ethics, the book breaks down real-world challenges and provides practical frameworks for responsible AI strategies. For any leader navigating AI’s risks and opportunities, this must-read guide ensures AI remains transparent and aligned with human values.

Looking ahead, Alec reflects on the enduring need for human connection.In a world shaped by automation and digital transformation, face-to-face interactions are irreplaceable. While AI can boost efficiency, it cannot replicate the trust and creativity born from human relationships. For business leaders, this means balancing AI-driven efficiency with human engagement.

Conclusion and Next Steps

AI is transforming industries, but its adoption comes with significant security, regulatory, and ethical challenges. As Alec Crawford highlighted, robust AI governance is critical—especially for high-risk applications. Compliance standards are evolving as ethical implications such as job displacement and economic inequalities demand attention. The companies that prioritize AI risk management today will be best positioned to innovate responsibly and build long-term trust.

Explore AI Risk Management in Action

Understanding AI risk is just the first step—taking action sets leading organizations apart. If you’re looking to secure AI deployments and ensure regulatory compliance, explore a hands-on demo of AIR-GPT. Get real-world insights on AI governance, security, and compliance solutions tailored for enterprises.

🔗 Schedule a free demo today: AI Risk Management Platform

Join the Conversation

AI governance isn’t just about technology—it’s about people and trust. How is your organization addressing AI security, compliance, and ethical challenges? Join the discussion on Innovation Tales’ LinkedIn—we’d love to hear your insights!