Use of Artificial Intelligence Attracts Legislative and Regulatory Attention in the E.U., U.S., and Israel

By‎ Adv. Dotan Hammer

Partner at the Cyber, Privacy & Copyright Group, Pearl Cohen Zedek Latzer Baratz

By‎ Adv. Tal Kaplan

Partner at the Cyber, Privacy & Copyright Group, Pearl Cohen Zedek Latzer Baratz

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The European Commission is proposing new legislative rules aimed to promote excellence and trust in the field of Artificial Intelligence (AI). The new proposal of EU regulation lays down: (a) harmonized rules for the use of artificial intelligence systems in the EU; (b) prohibitions of certain particularly harmful AI practices; (c) specific requirements for high-risk AI systems and obligations for operators of such systems; (d) harmonized transparency rules for AI systems intended to interact with individuals, such as emotion recognition systems, biometric categorization systems, and AI systems used to generate or manipulate image, audio or video content; and (e) rules on market monitoring and surveillance.

The proposal’s declared purpose is to lay down a balanced and proportionate regulatory approach between the minimal requirements to address the risks and problems linked to AI, without unduly constraining or hindering technological development or otherwise disproportionately increasing the cost of placing AI solutions on the market.

Meanwhile, in the United States, the Federal Trade Commission has offered business guidance on AI and algorithms, and how companies can manage the consumer protection risks of AI and algorithms. The FTC emphasizes that the use of AI tools should be transparent, explainable, fair, and empirically sound while fostering accountability. The FTC says that the use of AI technology to make predictions, recommendations, or decisions has great potential to improve welfare and productivity. However, it also presents risks, such as the potential for unfair or discriminatory outcomes or the perpetuation of existing socioeconomic disparities.

In Israel, the Innovation Authority and the Ministry of Justice have published a call for public comments and proposals on regulatory restraints and possible regulation in the field of AI, with an emphasis on experimenting and implementing AI systems, such as decision support systems – with or without the involvement of human judgment.

The call seeks feedback from the general public on questions such as the nature of desirable AI regulation considering Israel’s leading position as an R&D hub in the AI field; global regulatory models aimed to advance the AI field; and regulatory gaps between Israel and other countries. Comments can be submitted by email until May 13, 2021.

CLICK HERE to read the European Commission’s proposed regulation.

CLICK HERE to read the recent FTC guide for use of AI and algorithms.

CLICK HERE to read the Israeli AI call for public comments (in Hebrew).