On July 9, 2024, the FTC and California Attorney General settled a case against NGL Labs (“NGL”) and two of its co-founders. NGL Labs’ app, “NGL: ask me anything,” allows users to receive anonymous messages from their friends and social media followers. The complaint alleged violations of the FTC Act
Continue Reading FTC Reaches Settlement with NGL Labs Over Children’s Privacy & AIArtificial Intelligence (AI)
Italy Proposes New Artificial Intelligence Law
On May 20, 2024, a proposal for a law on artificial intelligence (“AI”) was laid before the Italian Senate.
The proposed law sets out (1) general principles for the development and use of AI systems and models; (2) sectorial provisions, particularly in the healthcare sector and for scientific research for healthcare; (3) rules on the national strategy on AI and governance, including designating the national competent authorities in accordance with the EU AI Act; and (4) amendments to copyright law.
We provide below an overview of the proposal’s key provisions.
Objectives and General Principles
The proposed law aims to promote a “fair, transparent and responsible” use of AI, following a human-centered approach, and to monitor potential economic and social risks, as well as risks to fundamental rights. The law will sit alongside and complement the EU AI Act (for more information on the EU AI Act, see our blogpost here). (Article 1)
The proposed law sets out general principles, based on the principles developed by the Commission’s High-level expert group on artificial intelligence, pursuing three broad objectives:
- Fair algorithmic processing. Research, testing, development, implementation and application of AI systems must respect individuals’ fundamental rights and freedoms, and the principles of transparency, proportionality, security, protection of personal data and confidentiality, accuracy, non-discrimination, gender equality and inclusion.
- Protection of data. The development of AI systems and models must be based on data and processes that are proportionate to the sectors in which they’re intended to be used, and ensure that data is accurate, reliable, secure, qualitative, appropriate and transparent. Cybersecurity throughout the systems’ lifecycle must be ensured and specific security measures adopted.
- Digital sustainability. The development and implementation of AI systems and models must ensure human autonomy and decision-making, prevention of harm, transparency and explainability. (Article 3)
Continue Reading Italy Proposes New Artificial Intelligence Law
EU Parliament Adopts AI Act
Earlier this week, Members of the European Parliament (MEPs) cast their votes in favor of the much-anticipated AI Act. With 523 votes in favor, 46 votes against, and 49 abstentions, the vote is a culmination of an effort that began in April 2021, when the EU Commission first published its …
Continue Reading EU Parliament Adopts AI ActSpotlight Series on Global AI Policy — Part III: China’s Policy Approach to Artificial Intelligence
The field of artificial intelligence (“AI”) is at a tipping point. Governments and industries are under increasing pressure to forecast and guide the evolution of a technology that promises to transform our economies and societies. In this series, our lawyers and advisors provide an overview of the policy approaches and regulatory frameworks for AI in jurisdictions around the world. Given the rapid pace of technological and policy developments in this area, the articles in this series should be viewed as snapshots in time, reflecting the current policy environment and priorities in each jurisdiction.
The following article examines the state of play in AI policy and regulation in China. The previous articles in this series covered the European Union and the United States.
On the sidelines of November’s APEC meetings in San Francisco, Presidents Joe Biden and Xi Jinping agreed that their nations should cooperate on the governance of artificial intelligence. Just weeks prior, President Xi unveiled China’s Global Artificial Intelligence Governance Initiative to world leaders, the nation’s bid to put its stamp on the global governance of AI. This announcement came a day after the Biden Administration revealed another round of restrictions on the export of advanced AI chips to China.
China is an AI superpower. Projections suggest that China’s AI market is on track to exceed US$14 billion this year, with ambitions to grow tenfold by 2030. Major Chinese tech companies have unveiled over twenty large language models (LLMs) to the public, and more than one hundred LLMs are fiercely competing in the market.
Understanding China’s capabilities and intentions in the realm of AI is crucial for policymakers in the U.S. and other countries to craft effective policies toward China, and for multinational companies to make informed business decisions. Irrespective of political differences, as an early mover in the realm of AI policy and regulation, China can serve as a repository of pioneering experiences for jurisdictions currently reflecting on their policy responses to this transformative technology.
This article aims to advance such understanding by outlining key features of China’s emerging approach toward AI.Continue Reading Spotlight Series on Global AI Policy — Part III: China’s Policy Approach to Artificial Intelligence
Spotlight Series on Global AI Policy — Part II: U.S. Legislative and Regulatory Developments
The field of artificial intelligence (“AI”) is at a tipping point. Governments and industries are under increasing pressure to forecast and guide the evolution of a technology that promises to transform our economies and societies. In this series, our lawyers and advisors provide an overview of the policy approaches and regulatory frameworks for AI in jurisdictions around the world. Given the rapid pace of technological and policy developments in this area, the articles in this series should be viewed as snapshots in time, reflecting the current policy environment and priorities in each jurisdiction.
The following article examines the state of play in AI policy and regulation in the United States. The previous article in this series covered the European Union.
Future of AI Policy in the U.S.
U.S. policymakers are focused on artificial intelligence (AI) platforms as they explode into the mainstream. AI has emerged as an active policy space across Congress and the Biden Administration, as officials scramble to educate themselves on the technology while crafting legislation, rules, and other measures to balance U.S. innovation leadership with national security priorities.
Over the past year, AI issues have drawn bipartisan interest and support. House and Senate committees have held nearly three dozen hearings on AI this year alone, and more than 30 AI-focused bills have been introduced so far this Congress. Two bipartisan groups of Senators have announced separate frameworks for comprehensive AI legislation. Several AI bills—largely focused on the federal government’s internal use of AI—have also been voted on and passed through committees.
Meanwhile, the Biden Administration has announced plans to issue a comprehensive executive order this fall to address a range of AI risks under existing law. The Administration has also taken steps to promote the responsible development and deployment of AI systems, including securing voluntary commitments regarding AI safety and transparency from 15 technology companies.
Despite strong bipartisan interest in AI regulation, commitment from leaders of major technology companies engaged in AI R&D, and broad support from the general public, passing comprehensive AI legislation remains a challenge. No consensus has emerged around either substance or process, with different groups of Members, particularly in the Senate, developing their own versions of AI legislation through different procedures. In the House, a bipartisan bill would punt the issue of comprehensive regulation to the executive branch, creating a blue-ribbon commission to study the issue and make recommendations.
I. Major Policy & Regulatory Initiatives
Three versions of a comprehensive AI regulatory regime have emerged in Congress – two in the Senate and one in the House. We preview these proposals below.
A. SAFE Innovation: Values-Based Framework and New Legislative Process
In June, Senate Majority Leader Chuck Schumer (D-NY) unveiled a new bipartisan proposal—with Senators Martin Heinrich (D-NM), Todd Young (R-IN), and Mike Rounds (R-SD)—to develop legislation to promote and regulate artificial intelligence. Leader Schumer proposed a plan to boost U.S. global competitiveness in AI development, while ensuring appropriate protections for consumers and workers.Continue Reading Spotlight Series on Global AI Policy — Part II: U.S. Legislative and Regulatory Developments
Spain Creates AI Regulator to Enforce the AI Act
On August 22, 2023, the Spanish Council of Ministers approved the Statute of the Spanish Agency for the Supervision of Artificial Intelligence (“AESIA”) thus creating the first AI regulatory body in the EU. The AESIA will start operating from December 2023, in anticipation of the upcoming EU AI Act (for…
Continue Reading Spain Creates AI Regulator to Enforce the AI ActFramework for the Future of AI: Senator Cassidy Issues White Paper, Seeks Public Feedback
On September 6, Senator Bill Cassidy (R-LA), the Ranking Member of the U.S. Senate Health, Education, Labor and Pensions (HELP) Committee, issued a white paper about the oversight and legislative role of Congress related to the deployment of artificial intelligence (AI) in areas under the HELP Committee’s jurisdiction, including health and life sciences. In the white paper, Senator Cassidy disfavors a one-size-fits-all approach to the regulation of AI and instead calls for a flexible approach that leverages existing frameworks depending on the particular context of use of AI. “[O]nly if our current frameworks are unable to accommodate . . . AI, should Congress look to create new ones or modernize existing ones.” The Senator seeks public feedback on the white paper by September 22, 2023. Health care and life sciences stakeholders should consider providing comments.
This blog outlines five key takeaways from the white paper from a health care and life sciences perspective. Note that beyond health and life sciences issues, the white paper also addresses considerations for other areas, such as use of AI in educational settings and labor/employment implications created by use of AI.
5 Key Takeaways for AI in Health Care and Life Sciences
The white paper – entitled “Exploring Congress’ Framework for the Future of AI: The Oversight and Legislative Role of Congress Over the Integration of Artificial Intelligence in Health, Education, and Labor” – describes the “enormous good” that AI in health care presents, such as “the potential to help create new cures, improve care, and reduce administrative burdens and overall health care spending.” At the same time, Senator Cassidy notes that AI presents risks that legal frameworks should seek to minimize. Five key takeaways from the white paper include:Continue Reading Framework for the Future of AI: Senator Cassidy Issues White Paper, Seeks Public Feedback
EU and US Lawmakers Agree to Draft AI Code of Conduct
On 31 May 2023, at the close of the fourth meeting of the US-EU Trade & Tech Council (“TTC”), Margrethe Vestager – the European Union’s Executive Vice President, responsible for competition and digital strategy – announced that the EU and US are working together to develop a voluntary AI Code…
Continue Reading EU and US Lawmakers Agree to Draft AI Code of ConductEU Parliament’s AI Act Proposals Introduce New Obligations for Foundation Models and Generative AI
On 11 May 2023, members of the European Parliament’s internal market (IMCO) and civil liberties (LIBE) committees agreed their final text on the EU’s proposed AI Act. After MEPs formalize their position through a plenary vote (expected this summer), the AI Act will enter the last stage of the legislative…
Continue Reading EU Parliament’s AI Act Proposals Introduce New Obligations for Foundation Models and Generative AIDOJ, FTC, CFPB, and EEOC Statement on Discrimination and AI
On April 25, 2023, four federal agencies — the Department of Justice (“DOJ”), Federal Trade Commission (“FTC”), Consumer Financial Protection Bureau (“CFPB”), and Equal Employment Opportunity Commission (“EEOC”) — released a joint statement on the agencies’ efforts to address discrimination and bias in automated systems.
The statement applies to “automated systems,” which are broadly defined “to mean software and algorithmic processes” beyond AI. Although the statement notes the significant benefits that can flow from the use of automated systems, it also cautions against unlawful discrimination that may result from that use.
The statement starts by summarizing the existing legal authorities that apply to automated systems and each agency’s guidance and statements related to AI. Helpfully, the statement serves to aggregate links to key AI-related guidance documents from each agency, providing a one-stop-shop for important AI-related publications for all four entities. For example, the statement summarizes the EEOC’s remit in enforcing federal laws that make it unlawful to discriminate against an applicant or employee and the EEOC’s enforcement activities related to AI, and includes a link to a technical assistance document. Similarly, the report outlines the FTC’s reports and guidance on AI, and includes multiple links to FTC AI-related documents.
After providing an overview of each agency’s position and links to key documents, the statement then summarizes the following sources of potential discrimination and bias, which could indicate the regulatory and enforcement priorities of these agencies.
- Data and Datasets: The statement notes that outcomes generated by automated systems can be skewed by unrepresentative or imbalanced data sets. The statement says that flawed data sets, along with correlation between data and protected classes, can lead to discriminatory outcomes.
- Model Opacity and Access: The statement observes that some automated systems are “black boxes,” meaning that the internal workings of automated systems are not always transparent to people, and thus difficult to oversee.
- Design and Use: The statement also notes that flawed assumptions about users may play a role in unfair or biased outcomes.
We will continue to monitor these and related developments across our blogs.Continue Reading DOJ, FTC, CFPB, and EEOC Statement on Discrimination and AI