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Navigating the practicalities of AI regulation and legislation

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Navigating the practicalities of AI regulation and legislation

Misusing artificial intelligence (AI) can have serious consequences, as seen in recent incidents involving movie studio Lionsgate, Microsoft, and a US telecoms service. These organizations learned the importance of verifying quotations and citations from generative AI systems and ensuring compliance with regulations and copyright laws.

Enterprises are eager to adopt GenAI, but they must prioritize governance, risk management, and compliance to address data privacy, security, and regulatory concerns. Chief information officers (CIOs) face the challenge of understanding which regulations apply to AI usage, from data privacy laws to transparency and discrimination issues.

While upcoming legislation aims to regulate AI development and deployment, the current regulatory landscape is complex and varies by jurisdiction. Organizations must navigate existing laws and prepare for future regulations to ensure compliance.

Evolving UK priorities

The UK is likely to introduce an AI Bill, but the exact regulatory framework remains uncertain. The government’s approach to AI regulation is expected to align with international standards, such as the Council of Europe’s Framework Convention on AI and Human Rights.

The UK AI Safety Institute may play a role as a regulatory body, alongside existing authorities like the Information Commissioner’s Office (ICO) and Ofcom. The government’s focus on AI assurance tools and compliance frameworks indicates a proactive approach to AI governance.

Regulations like the Online Safety Act will impact businesses using AI, requiring them to ensure content safety and compliance with data protection laws.

Disclosure requests

The ICO has requested disclosures from major platforms regarding data used to train GenAI systems, highlighting the importance of data protection laws like the Data Protection Act 2018. Businesses must address data protection implications of AI technologies and comply with regulatory requirements.

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Chief information officers are advised to consider existing laws that apply to AI systems and ensure compliance with regulations related to data protection, consumer rights, and equality.

AI systems must adhere to health and safety laws to prevent potential risks, such as AI-generated products that may pose dangers to consumers.

International implications

The US lacks comprehensive federal laws specifically targeting AI, leading to a fragmented regulatory landscape at the state and federal levels. President Biden’s executive order on AI emphasizes the need for frameworks and best practices to ensure compliance with existing laws.

In contrast, the EU has passed the most comprehensive AI legislation, the EU AI Act, which sets strict regulations for AI products and services. Businesses operating in the EU must comply with the act’s requirements, which include penalties for non-compliance.

Businesses must navigate a wide range of existing laws alongside the EU AI Act, covering intellectual property, data protection, privacy, financial services, security, consumer protection, and antitrust.

Code of practice

The EU AI Act regulates AI products and services to ensure compliance with safety requirements, including data security and user privacy. Businesses deploying AI systems covered by the act must prioritize responsible AI practices and regulatory compliance.

Training staff in responsible AI and regulatory compliance is essential for organizations using AI technologies. Proactively addressing safety measures and compliance requirements is crucial for businesses to maintain a positive reputation and avoid legal issues.

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