AI's Legal Landscape: Reviewing 2023's Impact and Expectations for 2024
Summary:
Over the past year, the legal landscape of artificial intelligence (AI) evolved significantly, with new regulatory frameworks emerging globally and a rising number of lawsuits pertaining to copyright and data violations. This article offers insights from industry experts on the legal Scene of AI in 2023 and how the developments might impact 2024. Despite many regulations being introduced, companies face significant compliance challenges. The EU AI Act, which aims to oversee AI technology deployment, has been key legislation in 2023. However, it has faced criticism from industry leaders. In the U.S., President Biden's Executive Order with safety standards for AI usage has stirred up challenges for developers due to its inconclusiveness. Future legislative anticipation includes the introduction of more specific laws, especially around AI-generated deepfakes. Experts also anticipate more clarity regarding copyright infringement.
The past year witnessed artificial intelligence (AI) emerging as a commonplace tool, provoking increasing legal considerations around its application. This emergence led to the development of new regulatory frameworks globally and sparked a series of lawsuits around copyright and data violations. As 2024 unfolds, we gather insights from law and AI industry experts about the implications of 2023's dynamics for the year ahead. To understand the route AI took in 2023, look up Cointelegraph’s "Ultimate 2023 AI Guide."
In 2023, the European Union took large strides in instituting laws to oversee the design and deployment of high-level AI systems, one of the first regions to do so. The EU AI Act was initially unveiled in April, endorsed by Parliament in June, and by December, a provisional agreement was reached upon the bill among negotiators from the European Parliament and Council. Eventually, the Act will regulate governmental use of AI in biometric surveillance, implement oversight for vast AI systems like ChatGPT, and establish transparency norms developers must follow before entering the market.
However, the Act has been criticised by tech players for being overly prescriptive. Lothar Determann, partner at Baker McKenzie and author of Determann’s Field Guide to Artificial Intelligence Law, shared that the Act might experience derailments just like previous EU regulations given the critique and historical trends of delays. A final text of the act is yet to be revealed even though the agreement came about in early December. Further, key political figures from member states, including the French President, have voiced their concerns regarding the existing draft.
Laura De Boel, a partner in the Brussels office of law firm Wilson Sonsini Goodrich & Rosati, detailed that the December development is a political agreement with formal enaction to arrive in the first part of 2024. She clarified, EU legislators have included a staggered grace period in the AI Act, explaining, "The rules on prohibited AI systems will apply after six months, and the rules on General Purpose AI will apply after 12 months. The other requirements of the AI Act will apply after 24 months, except that the obligations for high-risk systems defined in Annex II will apply after 36 months."
Despite the introduction of numerous regulatory changes, companies will battle a plethora of challenges in complying throughout 2024. The European Commission already calls on AI developers to voluntarily align with the key obligations of the AI Act before they become enforceable. Noteworthy is that this appeal demands the reorganization of internal processes and the preparation of the respective personnel.
Determann opined that companies will grapple with exhausting compliance requirements in adapting existing regulatory norms to AI regardless of the presence of a comprehensive AI regulatory regime. These norms include EU’s General Data Protection Regulation (GDPR), intellectual property laws, global privacy laws, property regulations, product safety rules, trade secrets, confidentiality contracts, and many more among the industry standards.
In the U.S., the Biden Administration issued an in-depth executive order on Oct 30 intending to safeguard citizens, government departments, and businesses, and ensure AI safety norms, nearing six new safety and security standards for AI, inclusive of ethical AI practices in the government sector. While Biden commended the order for reflecting core principles of 'safety, security, trust, transparency,' experts in the sector mentioned it has created a challenging situation for developers, given the order's vague language.
Further, 2024 is anticipated to see the introduction of more specific laws. This trend is glaring already in certain regions where AI-created deepfakes are facing regulation. American regulatory bodies are contemplating introducing rules on political deepfakes in the run-up to the 2024 Presidential elections. By late November, India was in the process of finalising laws against deepfakes.
In the domain of copyrights, there is expectancy of more clarity regarding what constitutes as breach of copyright and copyright laws. Throughout the last year, several eminent copyright lawsuits were filed, accusing top AI developers like OpenAI, Microsoft, Meta, and Google of violating copyright rules. With most of these cases still in court, it remains to be seen how the landscape will shape up in 2024.
Finally, in the essence of AI, Cointelegraph asked ChatGPT about its predictions for AI law in 2024. The AI made several projections, including the establishment of strict regulations around ethical concerns, the development of clear liability norms for AI-related incidents, an enhanced focus on data privacy laws, a surge in demand for AI algorithm transparency, and the emergence of specialized authorities for AI supervision, among others. Only 2024 will tell how accurate these predictions are. So, stay up-to-date with 2024's revelations about all things AI.
Published At
1/1/2024 3:30:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.