The EU AI Act was adopted by the European Parliament today and is expected to enter into force within a few months, with its first substantive provisions taking effect before the end of 2024. The EU AI Act applies across the AI lifecycle – from developers to deployers of AI technologies – and organisations across industries have been watching its progress closely. Now that it is finally approved, we set out below what’s next, and…
Cloud service providers looking to capitalise on increased demand from the financial sector need to be aware of the risks and issues that come with the territory. Providers need to be sensitive to the specific needs of financial sector customers in order to build successful relationships with this diverse and often sophisticated user base. The regulatory landscape in the jurisdictions where the customer operates is a key consideration. Cloud service providers seeking to serve the…
Hot on the heels of the unanimous vote by Ambassadors for the EU Member States (COREPER) approving the EU AI Act on 2 February (see our article on that vote here: Is the EU AI Act nearing the finish line? – Connect On Tech, today lawmakers from the EU Parliament have also overwhelmingly voted in favour of the Act as it continues on its legislative journey. The joint internal market and civil liberties committee of…
The UK government has published its long-waited response to the AI White Paper, “A pro-innovation approach to AI regulation” published back in March 2023. Here’s what you need to know. 1. Endorsement of principles-based approach The UK is sticking with its principles-based regulatory framework for AI, continuing to take a very different path to its EU neighbours (as discussed in our previous alert). Unlike the EU there will be no new AI regulator, new legislation…
A key step towards adoption of the EU AI Act was reached last Friday as the draft text received unanimous approval from the European Council’s main preparatory body. There are further votes to follow before the Act is adopted, but it’s looking likely that the final vote will take place in April and some substantive provisions of the Act could be in force soon after that, possibly by the end of the year. We set…
Whilst the EU’s AI Act has been grabbing all the headlines, the draft AI Convention has been flying under the radar. But not for much longer. The Convention, also sometimes called the ‘AI Treaty’, has been drafted by the Council of Europe. If adopted, it will be the first legally binding international convention on AI. The latest draft is not the final version, but contains text that is still subject to negotiation. We’ve set out…
Late in the evening on Friday 8 December in Brussels was a historic moment for AI regulation in Europe. After three days of extensive final debate the EU Parliament, Council and Commission finally announced provisional agreement on the EU AI Act, the bloc’s landmark legislation regulating development and use of AI in Europe. It is one of the world’s first comprehensive attempts to regulate the use of AI. The EU AI Act awaits formal adoption…
Last week was incredibly busy in terms of AI governance developments, on both sides of the Atlantic and globally. While countries are racing to demonstrate their leadership on AI governance on the global stage, common themes continue to emerge. Policymakers recognise the need to strike a balance between the opportunities and potential that this technology can bring, on the one hand, and the risks and challenges posed by AI, on the other hand. There is…
On 28 June 2023, the Law Commission of England and Wales published its recommendations for reform and development of the law relating to digital assets. The final report stemmed from a UK Government request to “make recommendations for reform to ensure that the law is capable of accommodating both crypto-tokens and other digital assets in a way which allows the possibilities of this type of technology to flourish.” In response, the Law Commission found that…
Last month, the European Supervisory Authorities (ESAs) launched a consultation package on the first batch of certain draft regulatory technical standards (RTS) and draft implementing technical standards (ITS) on certain aspects of the EU’s Digital Operational Resilience Act, DORA. You can find more detail in our alert here. The draft technical standards cover: the risk management framework that financial institutions (FIs) are required to introduce classification of ICT related incidents, and the test for classifying…