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Human Oversight, Transparency & What It Means for Global AI Regulation In this episode, Todd (COO & CISO) and Nate (Director of Cybersecurity) to discuss South Korea’s new AI Basic Act and what it signals for AI regulation globally. They outline the law’s focus on guardrails such as mandatory disclosure when AI is used, clear labeling of AI-generated content, human oversight in high-impact areas (like healthcare and critical infrastructure), and explainability around how AI-driven decisions are made. The conversation compares South Korea’s approach as a middle ground between the EU’s stricter governance (EU AI Act) and the US’s current emphasis on innovation and some AI deregulation, while noting the US has limited election-related rules around deepfakes. They discuss real-world risks like AI errors in allergen data, misleading or harmful AI content, and business impacts including compliance pressure, the importance of human validation, and maintaining an inventory of where AI is used to address “shadow AI.” They also note that South Korea’s fines appear relatively small compared to EU-style penalties, and that broader impact will depend on enforcement and how regulations evolve over the next several years. 00:00 AI Regulation Kickoff 00:26 South Korea AI Act Basics 01:17 Transparency and Labeling Rules 02:22 Elections and Deepfakes 03:21 Real World Risk Examples 04:39 Global Approaches EU US Korea 05:41 How Global Rules Shift 07:20 US Policy Tensions and Lawsuits 09:00 Business Compliance and Fines 10:10 Explainable AI in Banking 11:16 Regulated Marketing Disclosures 13:23 Shadow AI and Inventories 14:33 Explainable AI Expectations 14:46 Disclosure and AI Skepticism 15:50 AI in Customer Delivery 16:29 Code Risk and Accountability 17:18 Hallucinations in Compliance 18:03 Human in the Loop 18:59 Leadership and Validation 19:50 High Stakes Decisions 20:59 Regulation and Enforcement 21:34 Wrap Up and Next Episode