Equipment dealers and lenders looking to implement AI capabilities to their operations need to be aware of looming regulations.
As compliance and AI continue to drive technology investment for equipment dealers and lenders, adopting the appropriate management systems can help ensure long-term success. A strong AI management system provides key benefits to organizations, Kim Lucy, director of standards at Microsoft, said during a Dec. 12 webinar hosted by AI and security compliance firm A-lign.
“One of the biggest benefits of management systems is their adaptability and flexibility,” she said. “There is an up-front cost in terms of both financial cost and time and people, but if you implement them correctly … you can utilize them in a way that the controls and processes are really adaptable to.”
For context, simpler AI models can start at around $5,000, while the most complex ones can reach over $500,000, depending on the company’s size, expertise and location, according to software developer Future Processing. Meanwhile, fintech-specific applications range between $50,000 to $150,000 due to their different requirements, complexity and regulatory environments.
Adaptability represents a critical issue for AI adoption, as statewide, national and international regulations continue to develop, Lucy said.
“Right now we have the EU AI act, but we’re going to see regulations come up across the world,” she said. “We’re going to see regulations come out of Asia and Australia and the different states in the U.S., rather than at a federal level.”
Thirty-one states, Puerto Rico and the Virgin Islands had adopted resolutions or enacted legislation related to AI as of Sept. 9, according to the National Conference of State Legislatures. There is also an effort to develop federal legislation for AI in financial services, with two bipartisan bills introduced in the House of Representatives on Nov. 26.
Hesitancy to implement AI
As a result, some equipment dealers and lenders remain hesitant to implement AI out of concern that any investment made now may be irrelevant after the finalization of more legislation. That’s a worry, but any new regulations should be within the current international standard, ISO/IEC 42001, Shea Brown, founder and chief executive of AI consulting firm Babl AI, said during the A-lign webinar.
“The point here is that, no matter what they come up with, there’s no way in which [ISO] 42001 is going to be incompatible with that because you’re going to be trying to tailor it with the expectation that there are these other external obligations,” he said.
“You choose controls that are going to align with what you see as the future regulatory expectations, and if it turns out in 2026 they are slightly different, and the language is slightly different, that’s part of the continual improvement of the management system.”
ISO/IEC 42001 was developed by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) to create key requirements around AI leadership, planning, support, operation, performance evaluation and continual improvement, according to A-lign. It was published in December 2023.
Meeting necessary standards
Ultimately, the decisions and systems put in place today that earn 42001 certification should meet standards for regulators and stakeholders, Lucy said.
While regulators may not just accept the 42001 certification outright as compliance, the evidence for certification is the same criteria regulators will look for, she said.
“Ideally, they’ll accept a certification, but even if that’s not the case, your customers are likely going to require this, your suppliers are likely going to require this, and you’re going to be generating the evidence that is the same evidence that regulators are going to require,” she said.
The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.
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