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Governance, Risk, Audit & Privacy · Intermediate

AI Impact Assessment

Assessment of potential effects of an AI system on individuals, groups, and society across its life cycle.

Definition

AI impact assessments evaluate intended use, foreseeable misuse, affected stakeholders, risks to rights, safety, fairness, privacy, and transparency, and mitigation measures. ISO/IEC 42001 requires AI system impact assessments and ISO/IEC 42005 (2025) gives guidance. Laws such as the Colorado AI Act and EU AI Act require related assessments.

Example

Before launching an AI tenant-screening tool, a company assesses disparate impact on protected groups.

Exam tip

Impact assessments are about effects on people; risk assessments also consider organizational risk.

Related terms