Compliance
material impact
Customer or market-facing effects causing measurable harm.
Definition
An effect of an AI system on customers or markets that is measurable or could cause reputational, financial or legal harm; classification as 'material impact' triggers heightened governance requirements such as independent validation, board sign-off and supervisory reporting.
Related Terms
materiality
Impact on customers, operations, financial soundness or market integrity....
Material AI system
An AI application with significant impact or regulatory relevance....
Material Decision
Outcome with direct and substantial impact on a customer....
Material AI Portfolio
Collection of AI systems material to an entity's operations or risk profile....
Materiality Assessment
Risk-based determination of an AI application's significance....