AI Deployment Risk

Definition

The operational, legal, reputational, and financial risks arising from the implementation of artificial intelligence systems in business processes or customer-facing applications. AI deployment risks include model underperformance, adversarial attacks, regulatory non-compliance, data privacy breaches, and unintended discriminatory outcomes. A structured AI risk management framework — addressing pre-deployment testing, monitoring, and incident response — is a governance requirement for organisations deploying AI in material business functions.