For chief financial officers doing business in London, Paris, Rome, and other European ports of call, pay attention to how the European Union will be regulating artificial intelligence across the continent.
The latest update comes from the European Data Protection Supervisor (EDPS), the EU agency tasked with oversight of how companies use AI in the workplace and in consumer and business commerce.
The EDPS just rolled out its final outlook on Europe’s AI Act, which seeks to “regulate the development and use of artificial intelligence” in Europe.
“It is (our) duty to ensure that the tasks and duties of the EDPS . . . are clearly spelled out so that we can guarantee that the AI systems used and developed by EUIs are safe and sound,” says Wojciech Wiewiórowski, the Polish lawyer and EDPS Supervisor appointed to the five-year post by the European Parliament in 2019. “I also reiterate my call for the prohibition of AI systems posing unacceptable risks to individuals.”
New Laws to Regulate AI in Europe
Here’s what the EDPS is calling for on the AI Act – expect these mandates to make it into the final version of the legislation.
1. The use of AI systems that pose unacceptable risks to individuals and their fundamental rights is prohibited: The EDPS says this provision “includes the prohibition to use AI systems for automated recognition of human features and other behavioral signals in public spaces, and the categorization of individuals based on their biometric features,” in particular.
The EU has long said that AI shouldn’t be used in such contexts due to their “high levels of intrusiveness.”
2. To clarify the EDPS’ areas of regulatory oversight: The AI Act designates the EDPS as the “notified body and market surveillance authority to assess the conformity of high-risk AI systems that are developed or deployed by EUIs; as well as the competent authority for the supervision of the provision or use of AI systems by EUIs.” Based on its experience with enforcing fundamental rights, the EDPS says it “stands ready to take on the role of AI Supervisor of the EUIs.”
The EDPS certainly supports that provision and is requesting that its role, tasks, and powers be clarified under the AI Act, “taking into account the particularities of the legal framework applicable” to the agency.
3. To give consumers a legal right to report claims on company AI practices: This mandate should hit close to home for CFOs managing company operations in Europe.
Those complaints “should be made” in front of a “competent authority” who can properly review whether providers and users of AI systems infringe on the AI Act.
More broadly, the EDPS recommends that data protection authorities “are designated as national supervisory authorities under the AI Act to cooperate with authorities that have specific expertise in deploying AI systems, to ensure trustworthiness,” the agency states.
4. To call for the establishment of an AI-specific investigative agency: To properly enforce the AI Act, the EDPS calls for a “partner EU agency” called the European Artificial Intelligence Office (AI Office) to “support the objectives of the AI Office to centralize the enforcement of the AI Act in certain cases and to harmonize its application across the EU member states.”
The EDPS says it also “stands ready” to perform joint investigations “on equal footing with national supervisory authorities, as well as take part in the other activities of the AI Office.”
The EDPS is certainly not shy about throwing its considerable weight around on legislation that could significantly alter the way companies use artificial intelligence in the EU. With passage likely, it’s also just as likely the agency gets its way.
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
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