Is your GenAI under regulations?

Hello Guardians,

Today, we're going to learn the specifics of how the EU AI Act applies to Generative AI applications. There aren't a lot of details out there about it right now, given that regulations will apply selectively to certain use-cases (which are anybody's guess right now), but there's enough info to prick up your ears right now if you must!

So, let's dive in.

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Table of Contents

• Generative AI gets special treatment in the EU AI Act
• The risk-based approach: It's not as simple as you think
• Grey areas that might keep you up at night
• What you need to do right now to stay ahead

Generative AI: A Special Case in the EU AI Act

The EU AI Act recognizes generative AI as a type of "foundation model" - AI systems trained on large, diverse datasets for general output. This classification brings specific obligations, but also some ambiguities.

Key Obligations for Generative AI Providers

If you're providing generative AI systems, you'll need to:

1. Implement safeguards to prevent illegal content generation???
2. Disclose copyrighted training data usage ??
3. Ensure transparency about AI-generated or manipulated content ??

The Risk-Based Approach: It's Complicated

Here's where things get tricky. The Act doesn't automatically classify all generative AI as high-risk. Instead, each use case must be assessed individually. This means:

• ?? Some generative AI applications could be classified as "unacceptable risk" (e.g., real-time biometric identification in public spaces)
• ?? Others might be "high-risk" (e.g., AI-powered resume scanners for job applications)
• ?? Many will fall under "limited risk" (e.g., AI chatbots, with transparency requirements)

Grey Areas and Uncertainties

It's important to note that the Act's risk model may not fully address the unique challenges of generative AI:

1. ?? The risks of generative AI (like misinformation spread) are often diffuse and societal, rather than tied to specific use cases.
2. ?? The ethical justification for high-risk classification doesn't always apply neatly to generative AI's broader societal impacts.

These ambiguities may lead to challenges in implementation and compliance.

What This Means for Your Business

While the full impact remains to be seen, here are steps you can take now:

1. ?? Assess your generative AI applications for potential risks
2. ? Implement the specific obligations for generative AI providers
3. ?? Stay informed about evolving interpretations and guidelines
4. ?? Consider participating in regulatory sandboxes to test compliance

?? Hint: If you’re subscribed to this newsletter, we got you covered.

The Bottom Line

The EU AI Act's approach to generative AI is nuanced and still evolving. While it doesn't blanket-classify all generative AI as high-risk, you'll need to carefully evaluate your specific use cases.

For many of you, the primary focus will likely be on transparency and safeguards against illegal content generation. However, if your generative AI is used in high-stakes decision-making or sensitive areas, be prepared for stricter compliance requirements.

You’ll have to balance innovation and compliance … with having a life.

Remember, this is a developing area of regulation. Stay vigilant, seek legal advice when needed, and be ready to adapt as more clarity emerges.

Have questions or concerns about your specific generative AI application? Don't hesitate to reach out!

??Pro Tip: Have questions or concerns about your specific generative AI application? I can help. Just book a call.

Thank you for being a part of our growing community. Your support helps us reach more people and share valuable insights. If you find this information useful, please share it with others!

Until next time.

P.S: Feel free to drop a comment, or DM me if you have any questions - thank you.