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AI Regulatory Developments in the EU, US, and at the UN

Client Updates / Apr 01, 2024

Written by: Haim Ravia, and Dotan Hammer

The European Union (EU) has enacted its most comprehensive legislation to regulate artificial intelligence (AI), known as the AI Act. This very extensive law, spanning over two hundred pages, applies to AI technology providers and users across both private and public sectors. Notably, the AI Act also has extraterritorial applications, affecting companies and organizations outside the EU. The bulk of the law’s provisions are set to become effective in 2026.

Click here for an overview of the EU AI Act.

U.S. FTC. Lina Khan, Chair of the U.S. Federal Trade Commission (FTC), has expressed concern about the implications of AI technologies, highlighting the risks of using sensitive personal data, such as health and location information, for AI model training. She stressed that such practices could lead to privacy violations and surveillance issues. The FTC is thus formulating guidelines to ensure the safe and proper handling of data in AI development.

Khan also underscored that AI development must respect user privacy and data security, affirming that AI is not exempted from legal standards. Companies must directly inform users about the use of their data for AI training, rather than burying this information in terms of use.

Click here to watch Lina Khan’s speech.

Utah. The Governor of Utah has signed the Artificial Intelligence Policy Act into law. The Act, set to take effect on May 1st, applies to providers of generative AI tools and companies using these tools. The law focuses on the integration of rules regarding generative AI use within Utah’s existing consumer protection laws and ensuring transparency obligations. The law clarifies that Utah’s consumer protection laws equally apply to an entity’s use of generative AI and its other activities.

The law establishes an Office of AI Policy, tasked with the administration of an AI learning laboratory program to assist in developing future laws and reducing AI-related risks.

It also requires private sector entities to disclose their use of generative AI or respond to inquiries about their use of generative AI. Licensed or accredited services (e.g., accountants, architects, psychologists), are required to provide clear, upfront disclosure to individuals when they interact with AI as part of the service. Other services under Utah’s consumer laws, are only required to disclose the use of AI if consumers inquire about it.

Violations of the law can lead to administrative fines of up to $2,500 per incident and a civil penalty of up to $5,000.

Click here to read Utah Senate Bill 149.

UN. The United Nations General Assembly has passed a first-of-a-kind global resolution on AI, encouraging countries to adopt safe and dependable AI systems to achieve the UN’s 2030 Agenda for Sustainable Development. Initiated by the United States and backed by over 120 countries, the resolution, while declaratory and non-binding, sets out principles for AI development and use.

The principles include implementing AI safeguards, preventing misuse, supporting UN sustainability goals, protecting human rights, fostering global cooperation, creating regulatory frameworks, ensuring private sector law compliance, closing technology gaps, continuing AI dialogues, raising AI risk awareness, improving AI monitoring and security, and increasing transparency about AI vulnerabilities.

Click here to read the UN resolution on AI.