Artificial intelligence not only provides endless opportunities, but also poses an enormous challenge with profound implications. Indeed, the very creators of this disruptive technology are the same ones calling the loudest for its regulation.

The Center for AI Safety, for instance, goes as far as saying that, “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.” The statement has been signed by distinguished AI experts and executives from tech companies, including prominent AI power houses such as OpenAI, Google, and Microsoft, to name a few.

In response to this threat, governments around the world are pressing forward to pass laws to regulate AI, with the EU leading the race. Today, there are already more than 800 measures under consideration across not just the EU, but also 60-plus other countries and territories. A BCG study found it takes on average three years to roll out a fully mature Responsible AI (RAI) program, suggesting that time for companies to prepare for a world with AI regulation is limited.

Yet, as governments move ahead, companies are failing to catch up, let alone get ahead of the curve. BCG’s sixth annual Digital Acceleration Index (DAI), a global survey of 2,700 executives, revealed that only 28% of executives feel their organizations are fully prepared for new regulation.

Interestingly, companies in Asia Pacific appear to advance faster than even their European peers in preparing for AI regulation. For example, companies in Asia Pacific are significantly more likely to acknowledge that regulations are necessary to build AI responsibly (48% vs 35% of European companies). Accordingly, companies in Asia Pacific (35%) are also far more likely than their counterparts in Europe (25%) and North America (23%) to already employ an AI ethics officer.

Now, what about Thailand? Similar to their regional peers, Thai executives need no convincing that AI regulation is an unavoidable necessity (89% of respondents say so), citing topics such as data privacy, human well-being, equality and fairness, safety and reliability, and the fear of AI replacing humans as top priorities. Yet, not even 10% of executives feel their organizations are prepared for a world that regulates how AI can be put to use.

As BCG, we are convinced it is not too late for Thai companies to catch up with their regional peers, but it will take decisive action and investment. In our eyes, investing in RAI not only means managing risk, but also opens new opportunities to differentiate and, thus, create shareholder value. To help companies get started on their journey towards RAI readiness, we have laid out a set of five simple guidelines:

1. Empower RAI leadership. Set a point person, such as an AI ethics officer, who can shepherd initiatives and craft policy in line with the company’s broader social values as well as comply with emerging regulations and can work collaboratively across the company’s entire network.
2. Build and instill an ethical AI framework, i.e., a robust foundation comprising principles and policies to ensure the obligations of all relevant regulatory schemes are met, while minimizing any negative impact on business performance.
3. Bring humans into the AI loop. Most current and proposed AI regulations call for strong governance and human accountability. Feedback loops, review mechanisms, and escalation paths to raise concerns should be integral components of any RAI program.
4. Create RAI reviews and integrate tools and methods, spanning the lifecycle of an AI system. The goal is to catch and resolve problems as early in development as possible and be vigilant through, and after, launch. Organizations that can monitor AI effects across the lifecycle will win trust from governments and customers alike.
5. Participate in the RAI ecosystem. Actively contribute to an RAI consortium or working group to foster collaboration and sharing of best practices. Think of it as crowdsourcing that helps you both prepare for AI regulation. Through shared experiences, the ecosystem can provide insights on mitigating the risks and maximizing the rewards of AI.

Investing in RAI before governments step in makes good business sense. Getting ahead of the game will provide clarity and let companies better control outcomes for their businesses by becoming part of the dialogue and engaging with policymakers. Done right, RAI can be a powerful differentiator and, thus, source of competitive advantage. Thai companies should not miss this opportunity.

Author: Benjamin Fingerle, Managing Director and Partner, Boston Consulting Group