Navigating the New Frontier: The Shifting Legal and Regulatory Landscape of AI in 2023
As the sun sets on 2023, the artificial intelligence (AI) sector stands at a pivotal juncture, having witnessed a year of considerable transformation. The legal, regulatory, and policy domains surrounding AI have undergone a rigorous overhaul globally, marking a year that could very well define the trajectory of AI governance for decades to come.
At the heart of Europe’s engagement with AI regulation, the European Union’s AI Act emerged as a beacon of comprehensive legal frameworks aimed at the responsible development and deployment of AI systems. Initially thrown off course by the rapid evolution and adoption of general-purpose AI technologies, the legislation is now poised for implementation in 2024. This act is hallmarking the EU’s ambition to not only regulate but also set a global standard in AI governance.
Across the Atlantic, the United States pursued a markedly different approach. Eschewing a uniform federal framework, the U.S. favored a sectoral, self-regulatory regime. However, this does not imply a laissez-faire attitude toward AI. Significant guidance has emerged from the Department of Commerce’s National Institute of Standards and Technology (NIST) AI Risk Management Framework 1.0, which seeks to provide a cohesive approach to AI risk assessment and management. Furthermore, federal agencies including the Federal Trade Commission (FTC), Department of Justice (DOJ), Equal Employment Opportunity Commission (EEOC), Securities and Exchange Commission (SEC), and Consumer Financial Protection Bureau (CFPB) have actively engaged in the regulatory discourse, highlighting the multifaceted nature of AI’s impact on society.
The geopolitical ramifications of AI have prompted governments worldwide to re-evaluate their stance on AI regulation. The EU’s pioneering efforts, through its AI Act, signal the onset of the first comprehensive law specifically tailored to AI, with implications that stretch well beyond its borders. The act delineates prohibited and high-risk AI applications, setting a stringent regulatory framework that companies globally will need to navigate.
In a parallel stride, the White House issued an executive order on AI, underscoring the United States’ commitment to safety, setting new standards for AI development, and fostering responsible innovation. With a clear focus on safeguarding AI advancements, the executive order has augmented the regulatory landscape, prioritizing reporting requirements for foundation model developers and introducing robust AI-related security measures.
Legal and regulatory developments have spanned various facets of AI, including intellectual property (IP) litigation over AI-generated works, the intersection with employment law, and the implications for privacy and consumer protection. Notably, the AI Liability Directive (AILD) and the Product Liability Directive (PLD) have been instrumental in addressing damages associated with AI, propelling discussions around liability to the forefront.
As we look toward 2024, the continuing evolution of AI’s legal and regulatory framework is inevitable. The focus remains steadfast on ensuring the safety, transparency, and innovation of AI technologies. With global governments eyeing regulatory models to address the challenges and opportunities presented by AI, the discourse around AI governance is far from over.
The year 2023 has been emblematic of the significant strides taken towards understanding and regulating AI. From the EU’s trailblazing legislation to the sector-specific regulations in the U.S. and the executive orders aimed at bolstering AI security and innovation, the global narrative around AI is being rewritten. As we venture into uncharted territories, the collective ambition to steer AI towards a future that upholds human values and societal welfare continues to drive the global agenda.
Original Article: https://www.gibsondunn.com/artificial-intelligence-review-and-outlook-2024/
