AI Inventory: What is it?
An AI Inventory, also known as an AI Registry or AI Register, is a review of all artificial intelligence (AI) use cases within an organisation. Additionally, it serves as a catalogue of AI systems and applications, often coupled with an assessment of the risks each system might pose. At its core, the AI Inventory is a list of all AI tools or products currently in use by the organisation.
An AI Inventory provides organisations with a structured and transparent view of how AI is being utilised across their operations. By understanding the AI landscape within the company, organisations can identify:
- Compliance Requirements.
- Risk Management.
- Operational Efficiency.
- AI Governance.
The concept of an AI Inventory extends beyond just listing tools and should consider:
- The intended purpose of the AI system.
- Identification of applicable legislation (e.g. EU AI Act).
- Risk classification.
- Additional regulatory obligations.
- Use status (i.e. whether the system is in use or not).
- Regulatory status.
Key Components of an AI Inventory
Intended Purpose
A comprehensive discussion of the “intended purpose” of any AI product used or developed by an organisation should be a first step. For deployers, this means understanding what the AI system/model is intended to be used for, how to use it, and who its intended users are. These points are all critical for safe use.
Furthermore, a discussion on “intended purpose” allows an organisation to consider how the AI system is actually functioning, and the type of data being used to generate the final result.
Scoping
After understanding the intended purpose of a particular AI system, the next step will be to determine whether it falls under the scope of the EU AI Act. Article 2 of the EU AI Act sets out the scope. You can also explore Blue Arrow’s article here: Who does the EU AI Act apply to?
Risk Classification
The EU AI Act categorises AI Systems / Models into differing risk classifications. Understanding which classification a product falls under determines which requirements and obligations the organisation must meet.
Regulatory Status
An AI Inventory should track the regulatory status of each system to ensure compliance with applicable laws, standards, and guidelines. This includes monitoring adherence to the EU AI Act and other applicable legislation, such as data privacy laws like GDPR.
Use Status
The use status indicates the current state of an AI system within the organisation. For examxple, is the AI tool in active use, or is it still in the experimental phase? Perhaps some systems are being phased out or are to be replaced by newer technologies. Understanding the status of each AI system helps organisations prioritise resources, decide on upgrades, and ensure that outdated or underperforming systems do not pose unnecessary risks.
AI Governance
AI systems can introduce significant risks if not properly managed, including unintended biases, privacy violations, and security vulnerabilities. Moreover, AI systems that operate in high-risk environments, such as those affecting healthcare, finance, or employment decisions, can have profound societal implications if they fail or malfunction.
AI Governance helps organisations navigate these risks by providing a structured approach to managing AI systems throughout their lifecycle. It ensures that the design, deployment and maintenance of AI tools are transparent, fair, and accountable.
Building an Effective AI Inventory
Creating a comprehensive AI Inventory can be a challenging task, particularly for organisations with large, diverse AI portfolios. By documenting and analysing all AI tools and systems in use, businesses can make informed decisions about risk, compliance, and system optimisation.
Blue Arrow works with you to develop and maintain your AI Inventory to ensure full regulatory compliance. Following this discovery stage, we determine whether the AI products used by your organisation fall under the scope of the EU AI Act. We determine its risk classification and devise a strategy that you may use to comply accordingly.
Contact Blue Arrow to initiate your compliance journey today.
