On 31 May 2023, at the close of the fourth meeting of the US-EU Trade & Tech Council (“TTC”), Margrethe Vestager – the European Union’s Executive Vice President, responsible for competition and digital strategy – announced that the EU and US are working together to develop a voluntary AI Code of Conduct in advance of formal regulation taking effect. The goal, according to Vestager, is to develop non-binding international standards on risk audits, transparency and other requirements for companies developing AI systems. The AI Code of Conduct, once finalized, would be put before G7 leaders as a joint transatlantic proposal, and companies would be encouraged to voluntarily sign up.

Vestager’s announcement follows a recent meeting of G7 countries, in May 2023, where global leaders pledged to advance “international discussions on inclusive artificial intelligence (AI) governance and interoperability”, including discussions on topics such as copyright, transparency and the threat of disinformation.

The European Commission proposed its AI Act— establishing binding rules on banned and “high-risk” AI systems — in 2021 (see our blog here), however, the law is still being reviewed by lawmakers and is not expected to come into force before 2026. In May 2023, the European Parliament’s internal market (IMCO) and civil liberties (LIBE) committees agreed their final amendments to the Commission’s AI Act, including new requirements for providers of foundation models and generative AI (see our post here for further details on the proposals). After Members of the European Parliament (“MEPs”) formalize their position, the AI Act will enter the last stage of the legislative process: “trilogue” negotiations with the European Commission, Parliament and the Council, which adopted its own amendments in late 2022 (see here). Vestager said the AI Act is “well on track” but that its effective implementation is some way off, and the EU needs “to act now” in light of recent developments in generative AI.

In 2022, the EU and US began working on developing joint standards for “trustworthy AI” through the TTC and published a Joint Roadmap for Trustworthy AI and Risk Management (see our previous post here for further details). The closing statement of the May 2023 TTC meeting explains that the EU and US are continuing to implement the Roadmap by launching  three expert groups on: AI standards; terms required to assess AI risks; and monitoring existing and emerging risks.

The Covington team continues to monitor developments on the AI Act, and we regularly advise the world’s top technology companies on their most challenging regulatory and compliance issues in the EU and other major markets. If you have questions about the AI Act, or other tech regulatory matters, we are happy to assist with any queries.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Marianna Drake Marianna Drake

Marianna Drake counsels leading multinational companies on some of their most complex regulatory, policy and compliance-related issues, including data privacy and AI regulation. She focuses her practice on compliance with UK, EU and global privacy frameworks, and new policy proposals and regulations relating…

Marianna Drake counsels leading multinational companies on some of their most complex regulatory, policy and compliance-related issues, including data privacy and AI regulation. She focuses her practice on compliance with UK, EU and global privacy frameworks, and new policy proposals and regulations relating to AI and data. She also advises clients on matters relating to children’s privacy, online safety and consumer protection and product safety laws.

Her practice includes defending organizations in cross-border, contentious investigations and regulatory enforcement in the UK and EU Member States. Marianna also routinely partners with clients on the design of new products and services, drafting and negotiating privacy terms, developing privacy notices and consent forms, and helping clients design governance programs for the development and deployment of AI technologies.

Marianna’s pro bono work includes providing data protection advice to UK-based human rights charities, and supporting a non-profit organization in conducting legal research for strategic litigation.

Photo of Marty Hansen Marty Hansen

Martin Hansen has over two decades of experience representing some of the world’s leading innovative companies in the internet, IT, e-commerce, and life sciences sectors on a broad range of regulatory, intellectual property, and competition issues. Martin has extensive experience in advising clients…

Martin Hansen has over two decades of experience representing some of the world’s leading innovative companies in the internet, IT, e-commerce, and life sciences sectors on a broad range of regulatory, intellectual property, and competition issues. Martin has extensive experience in advising clients on matters arising under EU and U.S. law, UK law, the World Trade Organization agreements, and other trade agreements.

Photo of Lisa Peets Lisa Peets

Lisa Peets is co-chair of the firm’s Technology and Communications Regulation Practice Group and a member of the firm’s global Management Committee. Lisa divides her time between London and Brussels, and her practice embraces regulatory compliance and investigations alongside legislative advocacy. In this…

Lisa Peets is co-chair of the firm’s Technology and Communications Regulation Practice Group and a member of the firm’s global Management Committee. Lisa divides her time between London and Brussels, and her practice embraces regulatory compliance and investigations alongside legislative advocacy. In this context, she has worked closely with many of the world’s best-known technology companies.

Lisa counsels clients on a range of EU and UK legal frameworks affecting technology providers, including data protection, content moderation, platform regulation, copyright, e-commerce and consumer protection, and the rapidly expanding universe of additional rules applicable to technology, data and online services. Lisa also routinely advises clients in and outside of the technology sector on trade related matters, including EU trade controls rules.

According to Chambers UK (2024 edition), “Lisa provides an excellent service and familiarity with client needs.”