EU AI Act: Unifying Actors Across the AI Ecosystem

Dear All,

Welcome to the July 2023 edition of the AI & Partners Newsletter. ??What an exciting period it has been. ?From the European European Commission voting on the EU AI Act to the AI Summit 2023 there has barely been a moment to catch our breath.??But, we remain dedicated on our mission to help firms achieve regulatory excellence for the EU AI Act.?We hope you find this content value added.?

As always, if you have any comments or recommendations for content in future editions or would like to contribute content, please let us know: [email protected] .

What’s the latest with the legislative process?

• Adoption of negotiating position. ??On 14th June 2023, the European Parliament adopted its negotiating position (499 votes in favour, 28 against and 93 abstentions), with substantial amendments to the European Commission's text, including:
• Definitions. European Parliament amended the definition of AI systems to align it with the definition agreed by the OECD. Furthermore, European Parliament enshrines a definition of 'general purpose AI system' and 'foundation model' in EU law.
• Prohibited practices. European Parliament substantially amended the list of AI systems prohibited in the EU. European Parliament wants to ban the use of biometric identification systems in the EU for both real-time and ex-post use (except in cases of severe crime and pre-judicial authorisation for ex-post use) and not only for real-time use, as proposed by the European Commission. Furthermore, European Parliament wants to ban all biometric categorisation systems using sensitive characteristics (e.g. gender, race, ethnicity, citizenship status, religion, political orientation); predictive policing systems (based on profiling, location or past criminal behaviour); emotion recognition systems (used in law enforcement, border management, workplace, and educational institutions); and AI systems using indiscriminate scraping of biometric data from social media or CCTV footage to create facial recognition databases.
• High-risk AI systems. While the European Commission proposed to automatically categorise as high-risk all systems in certain areas or use cases, European Parliament adds the additional requirement that the systems must pose a 'significant risk' to qualify as high-risk. AI systems that risk harming people's health, safety, fundamental rights or the environment would be considered as falling within high-risk areas. In addition, AI systems used to influence voters in political campaigns and AI systems used in recommender systems displayed by social media platforms, designated as very large online platforms under the Digital Services Act, would be considered high-risk systems. Furthermore, European Parliament imposes on those deploying a high-risk system in the EU an obligation to carry out a fundamental rights impact assessment.
• General-purpose AI, generative AI and foundation models. European Parliament sets a layered regulation of general-purpose AI. European Parliament imposes an obligation on providers of foundation models to ensure robust protection of fundamental rights, health, safety, the environment, democracy and the rule of law. They would be required to assess and mitigate the risks their models entail, comply with some design, information and environmental requirements and register such models in an EU database. Furthermore, generative foundation AI models (such as ChatGPT) that use large language models (LLMs) to generate art, music and other content would be subject to stringent transparency obligations. Providers of such models and of generative content would have to disclose that the content was generated by AI not by humans, train and design their models to prevent generation of illegal content and publish information on the use of training data protected under copyright law. Finally, all foundation models should provide all necessary information for downstream providers to be able to comply with their obligations under the AI act.
• Governance and enforcement. National authorities' competences would be strengthened, as European Parliament gives them the power to request access to both the trained and training models of the AI systems, including foundation models. European Parliament also proposes to establish an AI Office, a new EU body to support the harmonised application of the AI act, provide guidance and coordinate joint crossborder investigations. In addition, Members seek to strengthen citizens' rights to file complaints about AI systems and receive explanations of decisions based on high-risk AI systems that significantly impact their rights.
• Research and innovation. To support innovation, European Parliament agrees that research activities and the development of free and open-source AI components would be largely exempted from compliance with the AI act rules.

It also intends to bolster citizens' right to file complaints and receive explanations of decisions based on high-risk AI systems. ?The draft mandate needs to be endorsed by the entire European Parliament prior to negotiations with the Council on the final form of the law can begin. The vote is expected to occur during the 12-15 June sessions.

If you have any interaction with AI systems, such as use, marketing, development, importing, distribution or development, including those categorised as high-risk, you may be within scope.?Contact us to receive more information on this matter.

What is the European AI Scanner?

On Monday 19th June 2023, AI & Partners launched European AI Scanner , a cutting-edge solution designed specifically for professional services firms. Our innovative platform empowers organizations to streamline compliance processes, enhance risk management, and achieve operational excellence.

As you are all aware, the regulatory landscape governing the modern economy is continually evolving, placing increased demands on firms to meet compliance requirements while maintaining efficiency. This is where European AI Scanner can make a significant difference.

Key Benefits of European AI Scanner:

• EU AI Act Regulatory Compliance Made Effortless: Our robust platform leverages advanced technologies such as artificial intelligence and machine learning to automate compliance workflows, ensuring adherence to the latest regulations and reducing the burden of manual processes.
• Risk Mitigation and Data Security: European AI Scanner incorporates comprehensive risk management tools that enable you to proactively identify and address potential risks, safeguard client data, and maintain the highest standards of data security.
• Enhanced Operational Efficiency: By centralizing and automating compliance tasks, our solution frees up valuable time and resources, enabling your team to focus on strategic initiatives, client relationships, and driving business growth.
• Real-time Monitoring and Reporting: Gain actionable insights into your compliance posture through intuitive dashboards and real-time reporting. Easily track key performance indicators, identify trends, and generate comprehensive reports for internal and external stakeholders.
• Scalable and User-Friendly: European AI Scanner is designed to be scalable, accommodating the needs of both small and large professional services firms. With a user-friendly interface and customizable features, it seamlessly integrates into your existing workflows.

Contact us here to book a demo.

What AI & Partners can do for you

Providing a suite of professional services laser-focused on the EU AI Act

• Providing advisory services: We provide advisory services to help our clients understand the EU AI Act and how it will impact their business.?We do this by identifying areas of the business that may need to be restructured, identifying new opportunities or risks that arise from the regulation, and developing strategies to comply with the EU AI Act.
• Implementing compliance programs: We help our clients implement compliance programs to meet the requirements of the EU AI Act.?We do this by developing policies and procedures, training employees, and creating monitoring and reporting systems.
• Conducting assessments: We conduct assessments of our clients' current compliance with the EU AI Act to identify gaps and areas for improvement.?We do this by reviewing documentation, interviewing employees, and analysing data.
• Providing technology solutions: We also provide technology solutions to help our clients comply with the EU AI Act.?We do this by developing software or implementing new systems to help our clients manage data, track compliance, or automate processes.

We are also ready to engage in an open and in-depth discussion with stakeholders, including the regulator, about various aspects of our analyses.

Our Best Content Picks for 2023?

Feature: AI & Partners: Reducing AI system risk – CEOs under pressure to adjust

With over 5,930 artificial intelligence (“AI”) players and 5,570 AI firms in the European Union (“EU”) 27 according to AI Watch, the scale of AI adoption has reached unprecedented levels. We need to talk frankly about AI system risk.

Every day a fresh news article reveals a new development in the AI sector, meaning that it is ripe for disruption by malicious actors.

Can widespread AI adoption optimise the current economic environment without causing irreparable harm to society?

Click here to read the article.

Report: Digital Europe: Sandboxing The AI Act - Testing the AI Act proposal with Europe's future unicorns

Report from DIGITALEUROPE’s pre-regulatory sandboxing initiative, which aimed to evaluate the proposed AI Act and its potential implications for European start-ups and SMEs. The findings are based on in-depth interviews conducted between 2 March and 20 April 2023 with 9 European start-ups and SMEs.

The aim of this project was to investigate participants’ compliance and market strategies with respect to the proposed AI Act, including its impact on their business and the wider business landscape more generally.

The following topics were covered:

• Familiarity with the AI Act proposal
• Familiarity with AI standards and the system of European harmonised standards
• Compliance impact
• Business impact
• Implications of the proposed AI Act for organisations

Click here to read the article.

Video: ChatGPT CEO on Mindfulness, AI and the Future of Life || Sam Altman Jack Kornfield & Soren Gordhamer

#SamAltman provides insights on the ‘biggest technological changes we’ve ever had to confront’. While #AI provides significant opportunities and challenges, its long-term utility relies on solid #ethics and #values pillars. In the discussion he’s joined by wisdom teacher, Jack Kornfield, and moderator, Soren Gordhamer.

Find out more here .

Partner: Introducing 300Brains

The multinational software development and technology consultancy that has built and deployed world class digital products and service clients worldwide.?They are characterised by agile ways of working and extensive knowledge in the #fintech , #medtech & #gaming sectors.

300Brains and AI & Partners have joined forces for the purposes of building – and maintaining – state-of-the-art products for their clients.?Reliable software development remains a bedrock of safe, secure and trustworthy #AI products. This partnership means that AI & Partners has access to the in-depth resources of 300Brains to augment its existing suite of software development expertise.?Another major milestone in the ecosystem’s ongoing development.

Learn more → https://300brains.com/

#AI #product #consultancy #development #IT

Conference: Postcard from AI Summit 2023 in London – A time for technological disruption

For the umpteenth time, the AI Summit was held in London, attracting a delegation of subject matter experts, innovators, policymakers and market practitioners from across finance, energy, construction, professional services and technology industries. The event was attended with the standard passion. However, a sense of excitement was detectable. This was most likely due to the recent launch of ChatGPT, OpenAI’s revolutionary large language model that was launched late last year. Moreover, the outlook for the community was relatively positive, driven by the renewed optimism of AI’s capabilities – and the investment community’s backing of this.

Read more from our postcard at → https://www.ai-and-partners.com/_files/ugd/2984b2_73401b17147945289d155ca2e4df7be4.pdf

#AI #regulation #technology #disruption #data

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Michael Borrelli, Co-CEO/COO, AI & Partners

Email address: [email protected]

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