Innovate or Wait for Regulations in AI?

Innovate With AI Like Regulation Is Already Here. Because It Basically Is.

Everyone keeps asking the same question in different outfits: Should we wait for regulation before we build?

No. Waiting is how you lose momentum, talent, and market position. Also, regulation is not a lightning bolt that suddenly appears. It is a slow-moving storm you can see on the horizon, and you can build in a way that keeps you moving without getting struck.

The move is simple: innovate aggressively in low-risk zones, and build governance that lets you ship in high-risk zones without lying to yourself about the risk.

The reality: “Regulation is coming” is already a constraint

Even if you ignore AI-specific laws, you are still bound by existing rules on privacy, consumer protection, discrimination, safety, recordkeeping, and model risk management.

In other words, “we used AI” is not a legal defense. It is usually an admission you better have documentation.

If you operate in finance, you already live under mature expectations for governance and controls. The Fed’s SR 11-7 guidance lays out what regulators expect around model risk management: sound development, validation, and governance. That applies whether your “model” is a spreadsheet, gradient boosting, or something that talks back.

Don’t wait. Build your own rule set and assume you’ll need to prove it later. We can help you set the playbook—reach out to us.