The AIA is extra-territorial
One of the things I’m going to do in AI Legal is explain the EU AI Act in bite-sized, easy to digest, chunks.
?Here’s the first chunk.
?Chunk 1: The AIA is extra-territorial
?Like the GDPR, the AIA is extra-territorial, but it’s extra-territorial in a different way.
?The GDPR applied to companies outside the EEA that either aimed their business at people in the EEA or monitored the behaviour of people in the EEA.
?The AIA is a bit simpler, and a lot tougher.
It applies to any AI system (a few exceptions, including scientific research and development AI systems) located outside the EEA, the output of which is used in the EEA. That’s a big change to the GDPR because, for the GDPR to have extra-territorial effect, there had to be some kind of intention behind it.
?Having said that the AIA is not wholly clear.? Here’s the provision in the articles:
?“providers and deployers of AI systems that have their place of establishment or who are located in a third country, where the output produced by the system is used in the Union;”
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?No reference to intentionality. But here’s what recital 11 says:
?“this Regulation should also apply to providers and deployers of AI systems that are established in a third country, to the extent the output produced by those systems is intended to be used in the Union.” [emphasis added]
?Go figure. Strangely, given that they are a key part of the clause, neither “output” nor “use” are defined.
?You can work out a definition of “output” from the definition of AI System: “….outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments”.?
?There’s no definition of “use” at all. What if you consider the AI system’s output, but decide not to use it? Does that count as use? Time will tell.
?It’s also worth bearing in mind that the AIA does not supersede any existing legislation. So, if you are located outside the EU and use an AI system to either aim your business at people in the EEA or monitor their behaviour, the GDPR will still apply.
? Catherine Adenle ? Kirk Borne, Ph.D. ?? ?? Barry Scannell Cecilia Ziniti Mark Lewis Bernard Marr
#AI #AIAct #extra-territorial #SaaS