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AI compliance glossary

22 terms, defined in plain language and mapped to the laws that use them.

A

Adverse Impact

A statistical finding that a selection process, test, or AI system produces substantially different pass rates, selection rates, or outcomes for different demographic groups, typically measured using the four-fifths (80%) rule from EEOC Uniform Guidelines.

NYC Local Law 144Colorado AI Act

AI Deployer

An organization or individual that integrates an AI system into its products, services, or internal processes for use in a specific application, as distinguished from the AI provider (developer) who built the underlying model or system.

EU AI ActColorado AI Act

AI Governance

The frameworks, policies, processes, and organizational structures that an organization establishes to ensure its AI systems are developed and used responsibly, in compliance with applicable laws, and aligned with ethical principles.

EU AI ActColorado AI Act

AI Literacy

The knowledge, skills, and understanding needed to evaluate, use, and critically assess AI systems, including awareness of how AI works, its capabilities and limitations, and its potential social and ethical impacts. Required training for employees operating high-risk AI systems under the EU AI Act.

EU AI Act

AI Regulatory Sandbox

A controlled regulatory environment created by a government authority allowing AI developers, particularly startups and SMEs, to test innovative AI systems under real-world conditions with reduced regulatory burden and direct oversight, in exchange for transparency and data sharing with regulators.

EU AI Act

AI Risk Management System

A documented, continuous process for identifying, analyzing, evaluating, and mitigating risks associated with an AI system throughout its entire lifecycle, from design through deployment and decommissioning.

EU AI ActColorado AI Act

Algorithmic Discrimination

When an automated system treats people differently based on protected characteristics such as race, gender, age, or disability, resulting in unfair or unlawful outcomes.

Colorado AI ActNYC Local Law 144

Automated Decision-Making

The use of computerized systems to make decisions about individuals with little or no human involvement, including decisions based on AI, machine learning, or rule-based algorithms that have legal or similarly significant effects.

EU AI ActColorado AI Act

B

C

E

F

G

H

I

P

R

S

T

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