Regulatory Approach of Artificial Intelligence

Regulatory Approach of Artificial Intelligence Date: June 8, 2023 Regulatory Approach Four main pillars of the regulatory approach under the EU AI Act: 1. Principle- based framework 2. Risk-driven intervention 3. Effect- orientated, process-based guardrails 4. Horizontal and complementary regulation Principle-based framework of the EU AI Act: To be continuously evaluated and addressed throughout the Al system's life cycle: 1. Human agency and oversight 2. Technical robustness and safety 3. Privacy and data governance 4. Transparency 5. Diversity, non-discrimination and fairness 6. Societal and environmental wellbeing 7. Accountability Source: High-Level Working Group, Ethics Guidelines for Trustworthy Al - Human agency and oversight' mean that Al systems shall be developed and used as a tool that serves people, respects human dignity and personal autonomy, and that is functioning in a way that can be appropriately controlled and overseen by humans. - ‘Technical robustness and safety' mean that Al systems shall be developed and used in a way to minimize unintended and unexpected harm as well as being robust in case of unintended problems and being resilient against attempts to alter the use or performance of the AI system so as to allow unlawful use by malicious third parties. - ‘Privacy and data governance' means that AI systems shall be developed and used in compliance with existing privacy and data protection rules, while processing data that meets high standards in terms of quality and integrity. - ‘Transparency' means that AI systems shall be developed and used in a way that allows appropriate traceability and explain ability, while making humans aware that they communicate or interact with an AI system as well as duly informing users of the capabilities and limitations of that AI system and affected persons about their rights. - 'Diversity, non-discrimination and fairness' means that Al systems shall be developed and used in a way that includes diverse actors and promotes equal access, gender equality and cultural diversity, while avoiding discriminatory impacts and unfair biases that are prohibited by Union or national law. - Social and environmental well-being' means that AI systems shall be developed and used in a sustainable and environmentally friendly manner as well as in a way to benefit all human beings, while monitoring and assessing the long-term impacts on the individual, society and democracy. Source: European Parliament, IMCO/LIBE Committees, Draft Compromise Amendments to the European Commission's proposal for Al Act, version 1.0, 9 May 2023 Risk-Driven Intervention Under The EU AI Act: - Al Systems as A Safety Component In Products 1. Risks to health and safety 2. Annex II to the EU Al Act 3. For examples: a. Machinery b. Radio equipment c. Toys d. Medical devices - Stand-Alone Al systems 1. Risks to persons' fundamental rights, rule of law, democracy and the environment 2. Annex III to the EU Al Act 3. For examples: a. Biometric and biometrics-based systems; b. Management of critical infrastructure; c. Educational and vocational training; Employment; Effect-Orientated, Process-Based Guardrails Under The EU AI Act: 1. Risk management 2. Transparency and disclosure 3. Regulatory oversight 4. Quality management The EU AI Act As A Horizontal Regulation Applies to: 1. Design of Al systems in scope 2. Development of Al systems in scope 3. Deployment of Al systems in scope 4. Use Al systems in scope To be implemented / enforced alongside existing and upcoming: 1. Data protection 2. Data governance 3. Cyber security 4. Platform 5. Antitrust 6. Consumer protection 7. Other (e.g. IP, non-discrimination) Regulatory Approach Objectives Drive growth and prosperity, increase public trust, position the UK as global Al leader Frame Characteristics Pro-innovation, proportionate, trustworthy, adaptable, clear, collaborative Framework Design Cross-cutting principles implemented by existing regulators, with centralized. support and coordination - Context specific Regulating based on the outcome in particular applications: Weigh the risk of using Al against the costs of missing opportunities - Principled-based 1. Safety, security, robustness 2. Appropriate transparency and explain ability 3. Fairness 4. Accountability and governance 5. Contestability and redress Implementation Proportionate and adaptable, informed by monitoring and evaluation