AI Impact Assessment

An AI impact assessment is a structured evaluation of how an artificial intelligence system might affect people, operations, and compliance obligations before deployment or significant changes. These assessments help organizations identify risks like bias, privacy violations, or unsafe outputs that could harm individuals or expose the company to legal liability. For governance purposes, conducting and documenting impact assessments demonstrates due diligence to regulators and board members, and creates an audit trail showing you considered harms before they occurred.

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EnforcementUS2026-09-29

IRS Deployed High-Impact AI With No Testing Records in 80% of Cases

The Treasury Inspector General for Tax Administration (TIGTA) found that four of five high-impact IRS AI use cases had no testing documentation. This was true even though data quality checks were being performed. TIGTA concluded this creates undetectable risk of inaccurate, biased, or unreliable AI outputs. IRS management agreed to standardize procedures and complete AI impact assessments for deployed systems by November 2026.

IRS federal AI compliance AI use case inventory data quality documentation OMB requirements TIGTA AI impact assessment audit readiness