Regulatory bodies are increasingly recognizing the need for transparent AI usage. New laws like the
AI Foundation Model Transparency Act in the United States compel organizations to disclose how their
AI models work and the data used to train them. By ensuring their generative models are explainable, companies become better positioned to comply with these regulations, avoiding costly penalties and legal ramifications. The governance of AI technologies is becoming a priority, as noted in discussions surrounding
SB 896, California’s Generative Artificial Intelligence Accountability Act.