Compliance Stuff

By Michael G. Jacobides, Sir Donald Gordon Professor of Entrepreneurship and Innovation and Professor of Strategy and Entrepreneurship at London Business School; M. Dalbert Ma, PhD Candidate in Strategy and Entrepreneurship at London Business School; Amartya Das, Principal at BCG; and Matt Langione, Managing Director and Partner at BCG. Every major technological shift invites two bad habits: panic and oversimplification. Generative AI has triggered both. On one side are those who insist that white-collar sectors are about to be hollowed out. On the other are those who reduce the whole matter to productivity: faster drafting, cheaper analysis, better search, more efficient workflows. Neither story is entirely wrong. But both are far too narrow. The more consequential question is not whether GenAI makes knowledge work faster. It is whether it changes how knowledge work is organized in the economy: which organizations do which tasks, what remains bundled inside firms, what moves across fi...

In response to concerns about the rapidly changing economy and the impact of artificial intelligence (AI) on the labor market, the White House is encouraging employers to adopt AI tools and train workers to effectively leverage them, as evidenced by the U.S. Department of Labor’s new guidance to promote “AI literacy.” Quick Hits The DOL’s AI Literacy Framework defines essential skills for effectively using and evaluating generative AI technologies in the workplace. The framework encourages employers to provide hands-on training to ensure all employees possess baseline AI literacy skills to engage with AI tools responsibly and effectively. The framework outlines foundational content areas and key principles for effective training, including experiential learning and the integration of complementary human skills alongside AI competencies. On February 13, 2026, the U.S. Department of Labor’s Employment and Training Administration published  Training and Employment Notice (TEN) 07-25 ,...

Year-end is traditionally a time for looking back and planning ahead . . . in life, as well as in the course of your business. Included here are some things you will want to consider at the end of 2025, going into 2026. Prepare for annual filings. The year-end is the perfect time to consider whether you need to update information about your corporation, limited liability company, or other entity in the state of your organization, or any state in which you are qualified to do business. S ome items you’ll want to review include: Address Agent for service of process Authorized shares Purpose It is also a great time to review your business and determine if there are any states where your entity’s conduct of business will require it to register as a foreign entity. While Ohio doesn’t require annual reports, other states, such as Delaware, Kentucky, Indiana, and Tennessee, do, and you should prepare for these filings for any entity that is organized or does business in those states. Likewis...

  President Donald Trump on Jan. 20 rescinded former President Joe Biden’s October 2023 executive order on artificial intelligence , which sought to develop security standards for AI and introduce consumer and worker protections. The executive order directed the federal government to assess the impact of AI on the workforce, prevent discrimination resulting from the use of AI tools, and support upskilling programs that help workers develop the skills and knowledge they need to succeed in the AI economy. Much of the implementation of the governance requirements has already occurred across federal agencies, but there is no longer a requirement for developers of advanced AI models to share the results of safety testing with the government. It’s unclear what, if anything, the Trump administration will issue in place of Biden’s order, which was criticized by some technology firms and Republicans as hindering AI innovation. We’ve rounded up articles from SHRM to provide more context...

  Your business may want to jump on the Generative AI (GAI) bandwagon and discover how your company may become more productive, competitive, reduce costs, and make the most of new technology . There are many intriguing and effective GAI programs available for use. However, there are important considerations your business should evaluate prior to adopting a GAI program. There are many new risks that GAI can create for your business, employees, and consumers. You should ensure that you are aware of these risks and take steps to mitigate them prior to launching a GAI program. The OECD’s AI Principles are one of the many available sets of overall considerations that businesses should weigh prior to launching GAI in the workplace. The OECD’s AI Principles generally include: 1. Inclusive growth, sustainable development and well-being. Include relevant stakeholders in evaluating whether to implement GAI, including executives, legal, data privacy, subject matter experts, human resource...

  One of our recent posts   discussed the uptick in AI risks reported in SEC filings, as analyzed by Arize AI. There, we highlighted the importance of strong governance for mitigating some of these risks, but we didn’t address the specific risks identified in those SEC filings. We discuss them briefly here as they are risks likely facing most organizations that either are exploring, developing, and/or have already deployed AI in some way, shape, or form.  Arize AI’s “ The Rise of Generative AI in SEC filings ” reviewed the most recent annual financial reports as of May 1, 2024, filed by US-based companies in the Fortune 500. The report is filled with interesting statistics, including evaluating the AI risks identified by the reporting entities. Perhaps the most telling statistic is how quickly companies have moved to identify these risks and their reports: Looking at the subsequent annual financial reports filed in 2012 reveals a surge in companies disclosing cyber and in...