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Why AI Systems Need Audit Trails Before Scaling

June 14, 2025•Emilia David•Original Link•1 minutes
AI Governance
Enterprise AI
Audit Trails

Enterprises must prioritize robust and auditable AI pipelines as AI applications and agents move into production to ensure compliance and performance.

June 13, 2025 — As enterprises increasingly deploy AI applications and agents into production, the need for robust, traceable, and auditable AI pipelines has never been greater. Without proper controls, organizations risk compliance failures, performance issues, and security vulnerabilities.

The Importance of Auditability

Kevin Kiley, president of orchestration company Airia, emphasizes that frameworks must include observability and audit logs to track decisions, data inputs, and potential issues like hallucinations or bad actors. "You need a record," he told VentureBeat.

Credit: VentureBeat, generated with ChatGPT

Building for the Future

Experts recommend embedding audit trails early in AI development. Key steps include:

  1. Data inventory: Identify accessible data and establish baselines for model performance.
  2. Dataset versioning: Assign timestamps or version numbers to ensure reproducibility.
  3. Tool selection: Choose between open-source platforms like MLFlow or closed systems with compliance integrations (e.g., AWS, Microsoft).

Yrieix Garnier of DataDog notes the challenge: "It’s very hard to validate AI solutions without reference systems."

Transparency Matters

Kiley warns against "black box" systems: "You’re going to have situations where flexibility is critical." Enterprises must balance functionality with visibility into decision-making.

Editor’s note: Learn more at VB Transform 2025.

Related News

August 13, 2025•Brian McKenna

AI Agents Demand Stronger Governance to Prevent Data Risks

Guest blog by Fraser Dear of BCN explores the risks of ungoverned AI agents and how organizations can implement guardrails to protect sensitive data.

AI Governance
Data Security
Generative AI
July 25, 2025•Rashi Aditi Ghosh, ET CIO

India Inc cautiously pilots autonomous AI agents amid trust concerns

Indian enterprises test OpenAI's ChatGPT Agents and Perplexity's Comet for workflow automation but cite data quality and trust as key challenges.

AI Agents
Enterprise AI
Autonomous Systems

About the Author

David Chen

David Chen

AI Startup Analyst

Senior analyst focusing on AI startup ecosystem with 11 years of venture capital and startup analysis experience. Former member of Sequoia Capital AI investment team, now independent analyst writing AI startup and investment analysis articles for Forbes, Harvard Business Review and other publications.

Expertise

Startup Analysis
Venture Capital
Market Research
Business Models
Experience
11 years
Publications
200+
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