Understanding the New EU AI Code of Practice: What This Means for Local Government

As technology continues to shape our world, the European Union's AI Act, which took effect on 1st August 2024, represents a significant milestone in regulating AI. The newly drafted General-Purpose AI Code of Practice aims to bring more transparency, risk management, and ethical standards to the development and deployment of AI models.

The true test of AI governance is not only in its ability to regulate but in how well it adapts to the evolving needs of public sector services. Local governments must lead by example, showcasing responsible AI use that prioritises transparency and accountability.

Key Highlights of the Draft Code of Practice

The draft outlines measures for providers of general-purpose AI models, emphasising:

• Transparency: Detailed documentation for AI models to be accessible for regulatory bodies and downstream users.
• Risk Assessment: Systematic identification and mitigation of systemic risks throughout the AI model lifecycle.
• Governance and Accountability: Clear frameworks for ownership and adherence to safety protocols.

Implications for Local Government

Local councils, particularly in the UK, should take note even though the UK is no longer part of the EU. The influence of the AI Act and its Code of Practice will likely extend across borders, impacting public sector AI use. Councils employing AI for public services, including planning, service delivery, or community safety, may need to adapt their practices to align with these new expectations.

Governance frameworks for AI must strike a balance between innovation and regulation. Ensuring public trust while enabling technological growth is essential for local councils to serve their communities effectively.

The draft Code's focus on transparency and continuous risk assessment aligns with best practices already championed by local authorities. However, implementing these measures may require increased resources and expertise, especially to address high-risk AI applications that could impact public trust and safety.

Expert Insights

Alex Combessie, CEO of the open-source AI company Giskard, called the adoption of the AI Act "both a historic moment and a relief," underlining the importance of structured regulations for AI development. However, industry voices have raised valid concerns over how smaller councils and public bodies will cope with potential compliance costs and administrative burdens.

For instance, many smaller UK councils may face challenges in adapting their current technology infrastructure to meet new transparency and risk assessment standards, especially without dedicated technical resources. Additionally, local authorities that rely on AI for essential services like planning applications or public safety monitoring will need to carefully review and potentially adjust their governance frameworks to ensure compliance, which could prove resource-intensive.

AI presents incredible opportunities for public service, but with those opportunities come responsibilities. Effective governance ensures that councils not only comply with regulations but foster a culture of ethical technology use that benefits all.

Staying Ahead of the Curve

For local government leaders, it is time to assess current and future AI systems and understand where they may need adjustments to comply with similar regulatory trends. Engaging with legal and AI experts is key to navigating these changes effectively while ensuring technology serves communities ethically and transparently.

Further Reading and Resources

• European Commission’s overview of the AI Act
• Analysis by Hill Dickinson on the AI Act’s impact on the UK
• EU AI Act: What It Is, Who It Affects, and Next Steps for Practitioners
• Artificial Intelligence (Regulation) Bill [HL] - Parliamentary Bills - UK Parliament

Final Thoughts

As we continue to see rapid advancements in AI, keeping informed and prepared will be crucial for local councils to harness these innovations responsibly. This draft Code of Practice is part of an ongoing journey we’ve explored in previous articles, where we’ve discussed how AI has already begun transforming local council operations—from streamlining administrative tasks to enhancing public engagement.

Regulation is key to harnessing AI’s potential safely, but it should be seen as an enabler, not a hindrance. Proper governance allows councils to innovate confidently, knowing that safeguards are in place to protect public interests.

With the proposed UK AI Act expected to introduce its own set of regulations, local councils will need to prepare for an evolving landscape where AI use is carefully governed and regulated. Staying ahead of these changes is not just a matter of compliance; it’s about embracing innovation responsibly and ensuring that technology serves communities as an asset that enhances services while safeguarding public trust in a transparent and trustworthy manner.

Until next time, let’s continue to embrace and lead in responsible AI practices that empower our local communities.