Integrating Finance, HR And Legal #NewsUnitedStates

Kannan Venkatraman, GenAI Services Exec & CTO at Capgemini. Leading digital/cloud transformations, AI/ML, data platforms & cybersecurity.

Corporate functions such as finance, HR and legal are critical stakeholders in building AI-driven cybersecurity solutions that align with business goals and meet regulatory requirements. Finance departments increasingly rely on AI to detect fraudulent transactions, and HR teams use AI to monitor employee behavior and ensure compliance with internal policies. Legal teams play an essential role by providing the regulatory oversight needed to ensure AI systems are developed, deployed and monitored within compliance frameworks.

However, challenges arise when these departments operate in silos or fail to coordinate closely with cybersecurity teams. Without collaboration, AI systems used by finance and HR teams can unintentionally trigger compliance violations.

Drawing on my background in data compliance and experience leading cross-functional AI initiatives, I’ve had the opportunity to work closely with finance, HR and legal teams to develop solutions that integrate cybersecurity needs with regulatory frameworks. In these roles, I’ve learned that collaboration among these departments is key to maintaining companywide compliance.

Compliance Risks Across Corporate Functions

Regulations like the General Data Protection Regulation (GDPR) in the EU demand demonstrable compliance across business functions. This requirement is particularly challenging when AI systems operate across HR, finance and legal departments. If the AI used by these functions can’t explain why a decision was made, the company risks noncompliance. The GDPR, for example, grants individuals the right to understand the logic behind automated decisions that affect them. Failure to provide this transparency could result in regulatory fines and erode customer and employee trust.

Consider a finance department deploying AI to monitor financial transactions for signs of fraud. AI can process vast amounts of data faster than any human, flagging suspicious activities almost in real time. However, if this system violates data privacy regulations or makes decisions without a clear audit trail, it can put the company at legal risk. HR departments face similar challenges when using AI for workforce management or recruitment. If the AI violates privacy laws or introduces bias, the organization could face lawsuits or regulatory penalties.

Legal teams are responsible for monitoring compliance with the GDPR, California Consumer Privacy Act (CCPA) and industry-specific regulations. If they aren’t involved early in the AI development process, cybersecurity tools designed to protect data could inadvertently create regulatory risks. For example, neutralizing a potential threat may involve processing personal data, but if handled improperly, it could lead to privacy violations.

The Solution: Striking A Balance Across Functions

The key to effectively managing AI in cybersecurity lies in structured collaboration across IT, HR, finance and legal departments. AI can’t function as a black box when compliance is involved. At several organizations, I developed governance frameworks that foster communication across departments, involving legal early in AI developments and regularly auditing AI’s outputs to ensure alignment with privacy and compliance policies. Finance and HR teams now co-design AI systems with legal and compliance experts, ensuring transparency and traceability.

Maintaining human oversight across AI implementations is essential, especially for HR recruitment tools, finance fraud detection systems and cybersecurity operations where decisions have significant regulatory implications. In my experience, cross-functional AI audits and stakeholder input not only strengthen compliance but also refine AI’s decision making to better support company goals.

Conclusion

Building compliant, AI-driven cybersecurity frameworks requires proactive collaboration across departments. By involving finance, HR, legal and IT teams early in AI development, organizations can establish robust compliance measures that align with regulatory standards, foster trust and enhance overall business integrity. This approach not only helps secure compliance but also positions AI as a strategic tool for growth and risk management.

Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?