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