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AI Regulation in Europe: From the AI Act to Future Regulatory Challenges (2310.04072v1)

Published 6 Oct 2023 in cs.CY and cs.AI

Abstract: This chapter provides a comprehensive discussion on AI regulation in the European Union, contrasting it with the more sectoral and self-regulatory approach in the UK. It argues for a hybrid regulatory strategy that combines elements from both philosophies, emphasizing the need for agility and safe harbors to ease compliance. The paper examines the AI Act as a pioneering legislative effort to address the multifaceted challenges posed by AI, asserting that, while the Act is a step in the right direction, it has shortcomings that could hinder the advancement of AI technologies. The paper also anticipates upcoming regulatory challenges, such as the management of toxic content, environmental concerns, and hybrid threats. It advocates for immediate action to create protocols for regulated access to high-performance, potentially open-source AI systems. Although the AI Act is a significant legislative milestone, it needs additional refinement and global collaboration for the effective governance of rapidly evolving AI technologies.

Overview of AI Regulation in Europe: From the AI Act to Future Regulatory Challenges

This paper provides an in-depth analysis of AI regulation within the European Union, focusing on the EU’s Artificial Intelligence Act (AI Act) and contrasting it with the UK’s sectoral, self-regulatory framework. The discussion centers on a hybrid regulatory strategy that integrates both approaches, advocating for agility and safe harbours to simplify compliance.

The European AI Act: Architecture and Critique

The AI Act represents a comprehensive legislative framework aimed at establishing rules for AI deployment across the EU. It adopts a risk-based approach, classifying AI systems into categories such as prohibited, high-risk, limited-risk, and unregulated. The authors highlight concerns over its broad definition of AI and the implications of classifying certain systems as high-risk, calling for further refinements. Specific critique focuses on the Act’s handling of foundation models and generative AI, emphasizing the need for precise risk assessments and a nuanced approach to the AI value chain.

EU versus UK: Divergent Regulatory Approaches

Distinct regulatory philosophies between the EU and UK reflect their differing governance priorities. The EU favors a stringent command-and-control model with comprehensive obligations, including conformity assessments and product liability stipulations. In contrast, the UK emphasizes a self-regulatory stance, promoting innovation while considering long-term existential risks. These differences underscore broader political divergences in market intervention and consumer protection.

International and Economic Considerations

The international scope of AI regulation is crucial. The paper stresses the EU’s lag in developing foundation models compared to the US and China, raising concerns over potential dependencies on foreign technology. It acknowledges the disproportionate compliance burden on EU SMEs and argues for supportive measures, such as financial assistance and clear guidelines, to foster competitiveness in the AI sector.

Future Regulatory Challenges

The paper identifies upcoming challenges in AI governance, including toxicity in AI outputs, environmental concerns due to the high resource demand of AI systems, and the risks posed by hybrid threats leveraging advanced AI technologies. It suggests the establishment of controlled access protocols for high-performance AI systems, considering potential restrictions on open-source models.

Policy Proposals

Proposals are put forward to refine the AI Act, suggesting improvements in defining AI, classifying high-risk systems, regulating biometrics, and managing the AI value chain. The importance of enabling binding codes of conduct and setting technical standards to alleviate compliance challenges is emphasized.

Conclusion

The AI Act is a significant legislative milestone for the EU, yet requires ongoing refinement and international cooperation to effectively navigate the complex and rapidly evolving AI landscape. The research calls for immediate strategies to manage AI risks and emphasizes the interconnected nature of technical, economic, and regulatory domains in shaping future AI policy.

In summary, this paper presents a critical examination of the EU’s AI regulatory framework, highlighting areas for improvement and projecting future challenges. It serves as a detailed resource for experienced researchers interested in the nuances of AI governance within the EU and its broader global context.

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Authors (1)
  1. Philipp Hacker (14 papers)
Citations (3)