How Will the Coming Wave of AI Regulation Affect Your Business?
AI-Driven Software In the UK, EU, and US Are All Facing Regulation; Here's What You Need to Know
Open AI’s ChatGPT sees 13 million daily visitors, all utilizing its vast power. As more people access ChatGPT and other AI chatbots, more people are exposed to the advantages and potential risks of artificial intelligence.
According to a recently released white paper by the British government, AI should be used fairly, safely, and transparently. This fair philosophy and several ethical concerns are at the core of the UK's push for AI regulation.
Keep reading to learn more about the UK government’s AI regulatory proposal, who’s following suit, and how regulation will impact your business in the US.
UK "Pro-Innovation" White Paper
The British government’s “pro-innovation approach to AI regulation” aims to satisfy three objectives:
“Drive growth and prosperity by making responsible innovation easier and reducing regulatory uncertainty.”
“Increase public trust in AI by addressing risks and protecting our fundamental values.”
“Strengthen the UK’s position as a global leader in AI.”
According to a 17-country-wide study by The University of Queensland, only 55% of people are willing to trust AI in the workplace. This makes the implementation of AI in the workplace, and therefore increasing productivity and innovations through AI, challenging, without causing negative feelings among employees.
The UK white paper sets out a framework to address the government’s proposed approach to its core AI objectives.
“Defining AI based on its unique characteristics to support regulator coordination”
“Adopting a context-specific approach”
“Providing a set of cross-sectoral principles to guide regulator responses to AI risks and opportunities”
“Delivering new central functions to support regulators to deliver the AI regulatory framework…”
This framework offers a contextual approach to artificial intelligence, along with a set of guidelines for businesses and regulators to follow. The approach helps to encourage companies that utilize AI to move in the same direction, creating cohesion, competitive fairness, and inspiring trust.
Do you think the UK’s white paper will serve to encourage AI innovation or stifle progress?
EU Countries Following Suit
In 2021, the European Commission proposed a regulatory framework for artificial intelligence. Unlike the UK’s “pro-innovative” approach, the European Commission’s proposal is focused on mitigating “undesirable outcomes.”
The European Commission’s proposal follows a risk-based framework that defines artificial intelligence by four levels of risk.
Unacceptable risk - shows a clear threat to people's safety and livelihoods.
High risk - AI systems used in specific industries such as law enforcement and migration.
Limited risk - AI systems with “specific transparency obligations.”
Minimal or no risk - basic AI applications like AI-enabled video games or spam filters.
It’s clear that while the UK’s proposed legislation is concerned with innovation, the European Commission is concentrated on safety.
However, since the rise of ChatGPT and similar chatbots, the European Commission’s framework is more challenging to apply to AI software. ChatGPT, for example, can be considered to have both an unacceptable risk and a minimal risk due to its versatile applications.
Will AI Regulation Be Imported to the US?
Though a federal bill is yet to pass into law or even gain any substantial support in Congress, the Federal Trade Commission (FTC) has indicated an increased focus on AI regulation. In fact, AI regulation has already found its way to the US through state privacy laws.
Several states, including California, Connecticut, Colorado, and Virginia, have passed data protection acts similar to the EU’s GDPR act, which contains considerations for “automated decision making.” Or, in other words, artificial intelligence.
The pieces of legislation, which come into effect this year, offer consumer rights for AI-powered decisions, AI transparency, and impact assessments. This means that users will be given an “opt-out” option when AI algorithms have to make impactful decisions on their behalf.
How Will AI Regulation Impact Your Business?
AI regulation like the above state privacy laws will affect your business depending on how you use artificial intelligence.
As privacy laws, these AI regulations are primarily concerned with how your business allows AI to handle data. For example, if your business’s website has an AI-driven customer service bot, you will need customer consent in order to process their information.
As a result, if you intend to continue using artificial intelligence in roles that require user data, your business must employ a robust data handling procedure to ensure personal information is appropriately secured.
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