Artificial Intelligence: Worthwhile Regulation From The European Union

I often argue against regulation, but not this time...

Last November, I voiced my opposition to the EU’s escalating tech regulation, advocating instead for a shift towards cultivating an environment open to nurturing the next generation of tech innovators. My argument centered on the notion that rather than suffocating the industry with stringent regulations, the EU should actively foster the growth of tech firms and incubate talent.

Drawing a parallel with the tech ecosystem of the United States, particularly Silicon Valley, I underscored the importance of robust tech financing avenues such as venture capital, vibrant capital markets for initial public offerings (IPOs), and dedicated sectors for tech development. By investing in these areas, Europe could attract and retain top-tier talent, positioning itself as a formidable player in the global tech landscape.

However, it's crucial to recognize the unique challenges posed by artificial intelligence (AI). While acknowledging the concerns surrounding AI, including workforce displacement, unemployment, fraud, disinformation, and even potential for warfare, I think an aggressive regulatory approach for AI is best.

Recent EU regulations for AI reflect a balance between fostering innovation and addressing societal risks. Aimed at safeguarding fundamental rights, democracy, the rule of law, and environmental sustainability, these regulations establish clear obligations for AI systems based on their potential risks and impacts.

In essence, we need pragmatic approaches to regulation—rules that encourage innovation while addressing legitimate concerns, thus positioning Europe as a leader in the responsible development and deployment of AI technologies, and tech development in general.

A few highlights:

• Safeguards on general purpose artificial intelligence

• Limits on the use of biometric identification systems by law enforcement

• Bans on social scoring and AI used to manipulate or exploit user vulnerabilities

• Right of consumers to launch complaints and receive meaningful explanations

The AI Act ensures that Europeans can trust what AI has to offer. While most AI systems pose limited to no risk and can contribute to solving many societal challenges, certain AI systems create risks that we must address to avoid undesirable outcomes.

For example, it is often not possible to find out why an AI system has made a decision or prediction and taken a particular action. So, it may become difficult to assess whether someone has been unfairly disadvantaged, such as in a hiring decision or in an application for a public benefit scheme.

Although existing legislation provides some protection, it is insufficient to address the specific challenges AI systems may bring.

The proposed rules will:

• address risks specifically created by AI applications;

• prohibit AI practices that pose unacceptable risks;

• determine a list of high-risk applications;

• set clear requirements for AI systems for high-risk applications;

• define specific obligations deployers and providers of high-risk AI applications;

• require a conformity assessment before a given AI system is put into service or placed on the market;

• put enforcement in place after a given AI system is placed into the market;

• establish a governance structure at European and national level.

Artificial Intelligence Act: MEPs adopt landmark law