Compliance and Responsible AI Session 5: CSR Assessment Frameworks PDF

FALL 2024 Compliance and Responsible AI Session 5: CSR Assessment Frameworks Pr Dr Nathalie DEVILLIER PGE 3A – 2024/2025  Pt 2 Session plan BlackBoard Platform Distinction between Compliance Contact Pr Dr Nathalie and CSR in busines...

FALL 2024 Compliance and Responsible AI Session 5: CSR Assessment Frameworks Pr Dr Nathalie DEVILLIER PGE 3A – 2024/2025  Pt 2 Session plan BlackBoard Platform Distinction between Compliance Contact Pr Dr Nathalie and CSR in business: Microsoft DEVILLIER Azure and Thalès CSR assessment frameworks: international standards, ESG Forum criteria, assessment by rating agencies Pr Dr Nathalie DEVILLIER – Fall 2024 – ©aivancity 2 Reminders on Compliance / CSR Compliance CSR Definition Goals Areas of application Scope and measurement of results Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 3 1. Comparative studies of Compliance and CSR 1. Microsoft Azure 2. Thales Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 4 Microsoft Azure – Compliance and CSR Respective fields: Compliance : Respect for laws and regulations in AI operations. CSR : Voluntary initiatives for a positive impact on society and the environment, specific to the technology and AI sector. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 5 Microsoft Azure – Compliance Primary Objective : Ensure Azure AI systems comply with data protection laws, AI ethics, and cybersecurity standards. Examples of compliance : GDPR Compliance : Data collection and processing in compliance with European privacy laws. Ethical Compliance : Adherence to ethical AI guidelines, such as algorithmic non- discrimination and transparency in decision-making processes. Environmental Compliance : Microsoft has committed to being Carbon Negative by 2030, which includes its Azure data center operations. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 6 Microsoft Azure – CSR Main objective : Use AI to promote the common good, while reducing the environmental impact of its activities. Key initiatives : AI for Good : Microsoft's program to develop AI solutions that combat climate change, support education, and strengthen human rights. AI Accessibility : Creating solutions for people with disabilities, integrating speech recognition and computer vision technologies. Digital Equality : Bridging the digital divide in developing countries by providing accessible and affordable AI tools. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 7 Microsoft Azure – Comparison Compliance CSR Object Mandatory to comply with Voluntary, with initiatives like AI for international standards (GDPR, Earth , aimed at reducing the US Data Protection Act). company's ecological footprint by using AI to protect ecosystems. Scope Compliance at Azure AI primarily CSR includes long-term projects that limits legal risks and ensures that target a broader societal impact, data is processed securely. notably through the responsible use of AI. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 8 Microsoft Azure – Links Convergence : Microsoft must comply with AI regulations (such as the EU AI Act ) while pursuing CSR initiatives that go beyond legal obligations. Complementarity : For example, Microsoft's efforts to ensure the transparency of algorithms respond to both legal imperatives and CSR commitments aimed at strengthening public trust in AI. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 9 Microsoft Azure – Examples Compliance CSR ISO 27001 requirements for data security in AI for Earth : Using AI to monitor and the cloud. preserve global biodiversity. Commitment to using 100% renewable energy for data centers by 2025. SOC 1 and 2 standards. AI for Accessibility : Digital inclusion programs for people with disabilities. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 10 Microsoft Azure – Compliance and CSR issues Compliance CSR Avoiding legal sanctions while ensuring Building consumer and partner trust by ethical use of AI while respecting users' promoting AI that has a positive and lasting rights. impact on communities, while respecting the environment. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 11 Thales – Compliance and CSR Respective fields: Compliance : Compliance with laws and regulations in sensitive sectors such as defense, AI, and cybersecurity. CSR : Voluntary initiatives to promote a positive impact on society and the environment, in connection with technological and environmental security issues Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 12 Thales – Compliance Main objective : Ensure that Thales technologies, including those related to AI, comply with all national and international laws on security, data protection and ethics. Examples of compliance : GDPR: Compliance with European standards for data protection in AI systems. International defense regulations: Thales ensures that its products comply with international regulations on arms export controls and cybersecurity laws. Environmental compliance: Compliance with emission management standards in its industrial facilities and products. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 13 Thales – CSR Main objective : To develop sustainable, safe and inclusive technologies that address global challenges, while ensuring a reduction in environmental impact. Key initiatives : ○ Ethical and secure technologies : Thales is committed to developing ethical AI solutions for defense and security, while respecting the principles of transparency and fairness. ○ Support for local communities : Educational programs and initiatives aimed at training local talent in STEM sectors, particularly in developing countries. ○ Environmental innovation : Development of technologies for carbon footprint reduction, particularly in air transport and traffic management systems. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 14 Thales – Comparison Compliance CSR Object Mandatory to comply with defense, Volunteer, focused on using AI to cybersecurity, and data protection improve human and environmental standards, particularly due to the security in a sustainable manner. sensitivity of the sectors in which Thales operates. Scope Compliance mainly limits legal risks CSR encompasses broader and sanctions, such as respecting initiatives, such as the commitment to international standards on the developing environmentally friendly export of technologies. and ethical defense technologies in the use of AI. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 15 Thales – Links Convergence : In areas such as cybersecurity, CSR initiatives (data security to protect privacy) are also reinforced by strict legal obligations (compliance). Complementarity : Thales follows a rigorous policy of compliance with cybersecurity laws , while promoting ethical cybersecurity projects that protect users from abuses related to AI technologies. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 16 Thales – Examples Compliance CSR ISO 27001 standards for information Thales Alenia Space : Development of security management, particularly in AI- space technologies aimed at monitoring based defense systems. climate change and promoting sustainable management of natural resources. Carbon Footprint Reduction: Target to reduce CO2 emissions in all aviation production lines and systems. Thales webpage Strict compliance with ITAR (International Ethical AI Technologies : Engaging in Traffic in Arms Regulations ) regulations partnerships for the development of for exports of defense equipment and responsible AI, with particular attention to software. the impact on human rights. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 17 Thales – Compliance and CSR issues Compliance CSR Thales must follow complex regulations Commitment to promoting transparency related to defense, security, and data and ethics in the use of AI and defense protection, including international technologies, while strengthening its positive standards on the export of sensitive impact on the environment (reducing carbon technologies. footprint) and communities. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 18 2. CSR assessment frameworks Evaluating CSR makes it possible to measure the effectiveness and impact of social and environmental initiatives. Formal and informal assessment frameworks. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 19 International standards ISO 26000 : International guidelines for social responsibility. Objectives : Alignment of practices with sustainable development, social well- being, and ethical corporate governance. Measuring impact : Reducing carbon footprint, improving working conditions, etc. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 20 ESG criteria Environmental : Management of natural resources, reduction of greenhouse gas emissions. Social : Workers' rights, working conditions, gender equality. Governance : Transparency, ethics, executive compensation. Assessment examples : Using ESG indicators to rate companies' sustainable performance. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 21 Assessments by extra-financial rating agencies MSCI ESG Ratings : Evaluation of companies on their management of ESG risks and opportunities. ‘Sustainalytics’ : Analysis of governance and environmental and social impacts. Importance to investors: Indicator of long-term risk management. Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 22 Assessments by extra-financial rating agencies Importance to investors: Indicator of long-term risk management. Examples: ○ MSCI ESG Ratings : Evaluation of companies on their management of ESG risks and opportunities. ○ BMJ RATINGS : one of the leaders in the European market for solicited sustainable development ratings ○ ETHIFINANCE : French agency created in 2004, specializing in SMEs and mid- cap companies in sustainable development Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 23 Self-assessment methods Internal charters and codes Carbon footprint : Calculate the company’s ecological footprint. Sustainability Reporting : Publish transparent results regarding CSR performance. GRI (Global Reporting Initiative) Standards : Indicators for sustainable and transparent reporting. Open the Open Global CSR Charter Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 24 Integrating stakeholders into the evaluation Importance of taking into account the opinions of internal and external stakeholders (employees, customers, local communities). Methods: Surveys, round tables, annual reports. Open the document Pr Dr Nathalie DEVILLIER – Fall 2024 – © aivancity 25 Conclusion Source: Smokova , Desislava (2022) How are GAFAM companies - Microsoft, Google, and Apple- utilizing AI systems' capabilities to drive their ESG/CSR initiatives? 26 advancing education in artificial intelligence