Compliance in AI means the system operates within defined rules: regulatory requirements, internal policies, data protection laws, and industry standards. For AI specifically, this involves ensuring that decisions can be explained and audited, that data is handled appropriately, and that processes meet the standards set by regulators.
An AI agent processing loan applications that cannot use certain data types in decisions, must provide reasons for adverse outcomes, and must log every action for potential regulatory review is operating within a compliance framework. Compliance is not an afterthought — it needs to be designed into AI systems from the start.
