RISE IN NEED FOR AI LAWS – RECENT PROMINENCE

Hailing from science fiction to becoming part and parcel of everyday life, Artificial Intelligence (AI) has revolutionized the world within a blink of an eye. The rise of Artificial Intelligence (AI) has brought about a significant transformation in our daily lives, ranging from chatbots to digital identity verification and anti-fraud solutions. With a projected global market size of $407 billion by 2027, AI has become an essential part of decision-making for governments, companies, and individuals alike. However, as the demand for AI-based solutions increases, so does the need for new AI laws to tackle potential future problems.

In this ever-evolving world, by quickly grasping and resolving society’s growing needs, AI will become a quintessential tenet of the human world. In light of the rapid growth of this technology and increased demand in the global market, the organizations providing AI-based solutions are all geared up to provide more robust solutions. But at the same time, introducing new robust solutions in the presence of current security protocols may lead to catastrophic circumstances. According to the Guardian, the Secretary of State for Education employed an algorithm in the UK to calculate students’ grades. As a result, over 40 percent of students got grades worse than their teachers had assigned previously. In another instance, a report by BBC revealed that Apple’s Credit cards had lower credit limits for women than men. Hence, AI-based decisions can have a negative impact on specific segments of society by discriminating against them.

Moreover, companies have been highly investing in AI systems in their products, services, processes, and decision-making, which has steered worldwide attention to the system’s regulation issues. Industries such as car manufacturing are exponentially integrating AI systems into their products. Such products like self-driving cars can potentially harm human life, but there is a lack of clarity on ascertaining the resulting liability. For example, in 2018 when the Uber self-driving car killed a pedestrian, initially, it was unclear who would be held accountable. To avoid such incidents and ensure transparency, accountability, and fairness in the use of AI, it is important to introduce AI legal standards.

Keeping in view the privacy, security and protection of individuals, governments have enacted various cybersecurity, data privacy, and AI laws. The GDPR and proposed EU AI Act in the European Union, the proposed Algorithmic Accountability Act 2022 in the United States, and AI Rule Book in the United Kingdom are formulated to regulate the AI industry. These laws oblige AI organizations to protect the sensitive data, information, and identity of data subjects and hold them accountable in the event of negligence.
AI is associated with the term ‘black box’ due to its complex structure and requires organizations to keep a skillful and well-trained workforce to develop, manage and implement AI-based systems in accordance with AI laws. Additionally, transparency and accountability of an entity are vital to gain the trust of its users; therefore, compliance with the existing laws and regulations is crucial. A slight negligence or failure to comply with the laws and regulations may result in detrimental effects for an organization costing millions in fines and damaging the reputation. To avoid such detrimental effects, it is in the best interest of an organization to comply with AI laws and keep itself updated.

Lex Bridge is a boutique law firm specialising in legal advice, regulatory compliance, and risk management services. With our in-depth and up-to-date knowledge of regulatory laws and risk management services and using our comprehensive database, we can provide your business with the guidance it needs to stay compliant and minimise potential legal exposure. We take pride in our commitment to excellence, integrity, and client satisfaction, and we work tirelessly to ensure your business is well-positioned and up-to-date in the regulatory landscape. Our clients and services are spread globally, primarily from the USA; EU; UK, and MENA states.​
This article is provided for informational purposes only and does not constitute legal advice.