Google, Microsoft, OpenAI, and others want to help enterprises demonstrate that their AI applications are behaving themselves through the creation of a new foundation.

The Appia Foundation will, it explained rather impenetrably, “establish modular specifications that provide a connecting layer to bridge foundational global standards with practical, trusted assessments across the global AI value chain.”

Those specifications will help AI users ascertain whether the systems they are using meet all the obligations that apply to them in the form of standards and regulations, it said. It’s a challenging task with so much regional variation in requirements, and where the EU, for example, is more tightly controlled than the US.

The Foundation has established a set of criteria to demonstrate conformity with what is expected. There are two layers: the Requirements and Guidance layers will help users determine what is actually required, while the Assessment Enablement layer will look at how those requirements are evaluated.

Appia stressed that what it is offering are not standards — which are set by recognized international bodies such as ISO/IEC — but a means of assessing what those standards mean and how they can be used by organizations. However, the Foundation said that some of the criteria that it is introducing may become standards themselves after a period of time.

The Appia Foundation is hosted by the Linux Foundation’s Joint Development Foundation, and its other members include Arm, Ericsson, Mastercard, Mitsubishi Electric, Omron, Schneider Electric, and Siemens. It is also looking to bring academics and government into the fold, so that it can establish an advisory board.

This article first appeared on CIO.

The age-old IT defense when compliance violations are investigated by regulators is to try and keep a low profile — and hope no one looks too closely. But with enhanced SEC interest in all data breaches encouraging regulators around the globe to take those closer looks at IT, data breach disclosure rules are becoming more strict.

While that might be unsettling for cybersecurity executives, it is also disturbing news for IT admins, who could find themselves under a remarkably uncomfortable spotlight. 

Consider this recent move by the New York State Department of Financial Services against the Delta Dental Insurance Company. State officials hit the insurance company for improper and inconsistent enforcement of its own data retention policies; improper incident response plan protocols; and improper notification of the security incident itself. 

The company was fined more than $2 million.

The data retention violations are perhaps the most problematic. Had that policy been enforced properly, much of the stolen data would have been destroyed long before the attackers could have accessed it. 

It’s not simply a matter of whether the IT rules for retention were sufficiently strict. Some regulators — and especially the US Federal Trade Commission (FTC) — focus extensively on companies who don’t do what they say publicly. If a corporate website promises something to customers, the FTC will hold companies to their word. 

Think about that the next time you assign a summer intern to handle your website’s copy. 

Inconsistent implementation of data retention policies can deliver other legal headaches. Having a good policy approved by the general counsel is fine, but it means nothing if all of your people do not follow it strictly. 

Let’s say one of your business units is being sued for having done something naughty. Opposing counsel subpoenas your business records, including emails from a few years ago. Your attorney responds that those email records no longer exist; they were deleted last year in accordance with corporate policy on data retention that says everything of a certain nature has to be deleted after one year. 

Fair enough. But what if opposing counsel in a deposition asks,“Really? Does that policy apply to all records of that nature?” You say that it does. 

“It might interest you to know that we have sworn testimony from four other employees who showed us emails of the same nature that were more than five years old. So why did you adhere to your policy regarding emails that might prove the fraud but somehow you did not delete others? Sounds a little selective, no? I think the judge would agree.”

In the dental case, the company had a strict policy on retention rules. But corporate software was programmed with “the ability to shorten, extend, or disable MOVEit Transfer’s default retention settings on a folder-by-folder or file-by-file basis.” 

The regulators then swooped in because the insurance company “had no written policy or procedure for requesting, reviewing, or approving such changes to folder retention settings.”

The best retention policy would, in theory, have no exemptions. But if you’re going to allow exemptions, you need a precise policy documenting how and when they can occur. There should be a required form so that a manager can write out the reasons for this specific exemption.

The New York state document is an important one to carefully review; it provides an excellent roadmap to how compliance can go wrong — and useful information on how to keep something similar from  happening to your company.