automation
This glossary entry explains automation for AI governance and model risk programs. The sections below summarize what the term means in plain language, why chief AI officers and cross-functional committees track it, where teams often get confused, and—when you are signed in—how it shows up across major industries and in expectations tied to the EU AI Act and NIST AI RMF. Use related links at the end of the page to explore neighboring concepts without losing context.
What It Means
Automation is when machines or software systems handle tasks and processes without human intervention, following predetermined rules and workflows. It converts manual, repetitive work into self-operating systems that can run independently once properly configured.
Why Chief AI Officers Care
CAIOs must distinguish between traditional rule-based automation and AI-driven intelligent automation when building technology strategies. Understanding automation's limitations helps them identify where AI can add value beyond simple task execution, and ensures they don't oversell basic automation as artificial intelligence to stakeholders.
Real-World Example
A manufacturing company's inventory system automatically reorders raw materials when stock levels hit predetermined thresholds, processes purchase orders, and updates accounting records - all without human involvement once the rules are programmed.
Common Confusion
People often confuse basic automation with artificial intelligence, but automation simply follows pre-programmed rules while AI can learn, adapt, and make decisions in situations it hasn't specifically been programmed to handle.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, automation streamlines clinical and administrative workflows while requiring strict compliance with HIPAA...
Finance: In finance, automation streamlines critical processes like trade execution, compliance monitoring, regulatory reporting,...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"Independent machine-managed choreography of the operation of one or more digital systems."Source: IEEE_Guide_IPA
"conversion of processes or equipment to automatic operation, or the results of the conversion"Source: IEEE_Soft_Vocab
"The system functions with no/little human operator involvement; however, the system performance is limited to the specific actions it has been designed to do. Typically these are well-defined tasks that have predetermined responses (i.e., simple rule-based responses)."Source: DOD_TEVV
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