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AI Regulation Is On The Horizon – Part 4

 |  June 6, 2022

By: Defined.AI

This is Part 4 of Defined.AI’s series on AI Regulation…

Regulation’s Effects on AI Business

Although designed primarily for the European Union, the proposed tech policies will go beyond Europe’s borders, effectively applying to most if not all online businesses, particularly if those businesses hope to maintain access to any of the markets in the EU’s 27 member states—much like how the General Data Protection Regulation (GDPR) was rolled out and now applies to virtually every site and service on the internet. 

Insofar as the EU AI Act is concerned, there shouldn’t be significant disruption to businesses developing and deploying AI technology. The only businesses that should be concerned are those fielding high risk systems however, which will be subject to the aforementioned reporting and auditing processes pre- and post-deployment. Businesses found running afoul of the AIA’s rules risk penalties amounting to up to 6% of their global revenue or €30 million—whichever is greater of the two, signaling the EU’s earnestness in enforcing the policy. 

All that said, why should industry care whether government gets involved? Or more provocatively, should government even be involved in the first place? The EU and US government’s argument is yes, as industry alone cannot drive innovation if industry’s paramount incentive is profit. Concerns over stifling innovation are well noted however, and it is undoubtedly in the interests of governments to facilitate industry if it wishes to foster a flourishing economy. However, it bears considering how those successful economies are achieved, with the idea here being “not at the expense of people, their privacy, or their rights.” If corporations aren’t incentivized to innovate in those directions by default, it’s up to the state to exert their influence to do so…