Hogan Lovells 2024-2025 AI Trends Guide - Flipbook - Page 5
Developing a global approach to AI governance
As the existing and future risks of AI technologies become ever
more apparent, regulators and policymakers around the world are
paying close attention, with many seeking to introduce AI-specific
legislation.
The European Union has for many years led the way with digital
regulations in fields such as privacy and online harms and is
now looking to do the same with artificial intelligence through
the AI Act. This is a ground-breaking piece of legislation, which
seeks to establish the world’s first comprehensive cross-sector
framework for regulating artificial intelligence. Other jurisdictions
are considering following the EU’s lead or developing their own
approach, including the U.S., UK, and China.
The UK has taken a very different approach to regulating AI, with
the focus on introducing a set of basic principles which will be
supplemented by sector-specific guidance from existing sector and
Additional
resources
Spotlight
Global AI Governance Principles
Sherry Gong
Partner
Beijing
One of the main challenges for organizations that are developing or
using AI will therefore be to develop a consistent and sustainable
global approach to AI governance framework which adequately
manages the AI risks and satisfies diverging regulatory standards.
Dan Whitehead
Counsel
London
Standards for AI governance
A focus on Europe
The AI Act, which entered into force on 1 August 2024, sets out
a layered, risk-based approach that aims to achieve a safe and
innovative AI landscape. The impact on organizations hinges on
two main factors: the nature and purpose of their AI systems, and
their role within the AI supply chain. Rather than regulating all AI
systems, the AI Act zeroes in on “high-risk” AI which is identified
by the EU as likely to result in a high risk, which can be updated by
the EU at any time. Companies involved in developing, deploying,
and distributing these high-risk AI systems must meet strict
obligations. Additionally, the AI Act sets up a distinct framework
for General Purpose AI (GPAI) providers, who develop versatile AI
models that can be configured and deployed for a wide variety of
purposes. Furthermore, transparency and AI literacy requirements
apply broadly to many AI providers and deployers, regardless of
their systems’ risk classification.
Authors
domain-specific regulators. The proposal seeks to strike a balance
between the primary policy objective of creating a ‘pro-innovation’
environment for business and developing trustworthy AI that
addresses the most significant risks to individuals and society.
A focus on China
Lacking a unified AI legislative regulation, China takes a bespoke
approach and creates rules for the specific types of algorithmic
applications and AI services, e.g., recommendation algorithms,
deep synthesis technology, and generative AI. On top of the global
AI governance compliance framework, market players in China
should also consider China-special challenges: one important
issue is content moderation – companies should filter illegal
and inappropriate content to follow “socialist core values” and
not endanger national security. Another consideration is the
requirements concerning international data transfers under
Chinese law, which may limit the cross-border use of AI systems
globally, despite China’s regulators relaxing the requirements and
allowing some exemptions for the review process of international
data transfers in March 2024.
Chantal van Dam
Counsel
Amsterdam
