#391 How Regulated Industries Can Adopt AI Without Losing Control

Dr. Darren Pulsipher (0:00)

Welcome to Embracing Digital Transformation. Before we dive in, I wanted to personally thank you for listening. Many of the ideas we discuss on this show inspired my new book, AI Augmented Teams. If you're looking for practical ways to combine human expertise and AI to achieve better outcomes, I think you'll find it valuable. Learn more at paydar.ai.books. That is paidar.ai.

Now, let's get started with the show.

Aaron Bach (0:31)

But I think in general, and you said it before we started here, the feeling of it moving so fast. I was there with you at a different stage, com and other technologies, those were fast. This is unbelievably fast. We don't have our hands around it. And I think the natural feeling, to your point, when there are human lives Are lives at. risk or there are big-time regulatory penalties for non-compliance? The attitude is of course going to default to shut it down until we can get our hands around it.

Dr. Darren Pulsipher (1:02)

Why this matters to you? Because AI is already entering regulated enterprises whether leaders approve it or not. The real challenge is not curiosity. It is control, velocity and trust. If your organization is relying on blanket bans, you may be pushing the work into shadow channels. If you move too fast, you can expose the business to compliance, security and operational risk. In this conversation, we get past the hype and look at what executives actually need to manage before AI becomes another unmanaged force in the enterprise.

Welcome to Embracing Digital Transformation. This is Dr. Darren.

On this episode, how regulated industries can adopt AI without losing control with Aaron Bach.

Dr. Darren Pulsipher (1:55)

Aaron, welcome to the show.

Aaron Bach (1:57)

Thank you, Dr. Darren. Great to be here. Appreciate it. We'll have a great conversation today.

Dr. Darren Pulsipher (2:01)

Yeah, I'm excited about this. I mean, AI and some agents have gotten loose a couple of times in highly regulated industries. That's dangerous, right? That's why they're regulated, right? But before we dive into that, everyone knows that on my show, I only have superheroes on the show.

Every superhero has a background story. So Aaron, what's your background story?

Aaron Bach (2:24)

Gosh, I would love to say I was produced by some radioactive incident, but maybe in another life. I've been fortunate in my career to really have been at the forefront of a lot of different technological revolutions just as they were starting to happen, and it just worked out nicely in that regard. And across leading large teams, small teams, large organizations, entrepreneurial settings and everything in between, I've really been in a position where everything that I've gotten to work on has had real impact on real people. It wasn't a foregone conclusion stepping into technology that wouldn't be in the back office somewhere building random systems, whether it was for these industries that are so in need of technological revolution like health care, big banking, like finance or others.

I've really been fortunate to lead the progression, a lot of different technologies, very tailored for the purpose of helping real people solve real problems. And as part of what I do today, I love being in a position to help individuals who, as you know, in these industries, they are crushed under the amount of work. Things are being required of them faster, harder, more than ever. We stand at the precipice of this interesting technology that promises to unlock their capabilities in a fresh way, if it could be done correctly. And gosh, what an opportunity to step into the breach there. So quite a time to be alive. I'm grateful to be in it.

Dr. Darren Pulsipher (3:45)

Yeah. Well, I'm glad you said if handled properly because right now it's not being handled very properly at all because we don't know how to handle it. I think there's so much to learn still on how to utilize AI effectively. And it's interesting, your career is kind of starting off as mine. I started in medical imaging. And I remember the first time I saw my product at a customer site, actually them using it, which was a digital radiography system. So for radiologists. And you're sitting there watching your user use your system to help people save lives.

And you get kind of this feeling inside like, man, I actually made an impact.

Aaron Bach (4:36)

Yes, absolutely. Not to knock our colleagues who work on e-commerce or things like that. We need those types of things. But man, what a powerful moment to be able to say, look at that thing touching one of maybe a handful of core industries that every human being on the planet needs. And my thing is creating an impact there. Absolutely.