This quarterly update highlights key legislative, regulatory, and litigation developments in the second quarter of 2024 related to artificial intelligence (“AI”), connected and automated vehicles (“CAVs”), and data privacy and cybersecurity. Continue Reading U.S. Tech Legislative, Regulatory & Litigation Update – Second Quarter 2024
California Privacy Protection Agency Takes Next Step on New Automated Decision-Making Regulations and Privacy Risk Assessments
At its March 8, 2024 meeting, the Board of the California Privacy Protection Agency (“CPPA”) moved, by a 3-2 vote, to advance proposed regulations addressing automated decision-making technology (“ADMT”) and risk assessments for the processing of personal information. Notably, the Board’s vote only allows staff to begin paperwork preliminary to a rulemaking; it did not actually initiate the formal rulemaking process. At the meeting, the CPPA Staff clarified that the Board will need to re-review the draft rules for ADMT, privacy risk assessments, and cyber audits and vote again to initiate the rulemaking process. The CPPA’s General Counsel Philip Laird said he expects the Board will vote to begin the formal rulemaking process for all three topics in July 2024, at the earliest. Once formal rulemaking begins, the Board has one year to finalize the regulations, per California’s Administrative Procedure Act.Continue Reading California Privacy Protection Agency Takes Next Step on New Automated Decision-Making Regulations and Privacy Risk Assessments
Trends in AI: U.S. State Legislative Developments
U.S. policymakers have continued to express interest in legislation to regulate artificial intelligence (“AI”), particularly at the state level. Although comprehensive AI bills and frameworks in Congress have received substantial attention, state legislatures also have been moving forward with their own efforts to regulate AI. This blog post summarizes key themes in state AI bills introduced in the past year. Now that new state legislative sessions have commenced, we expect to see even more activity in the months ahead.Continue Reading Trends in AI: U.S. State Legislative Developments
Department of Commerce Issues Proposed Rule to Regulate Infrastructure-as-a-Service Providers and Resellers
On January 29, 2024, the Department of Commerce (“Department”) published a proposed rule (“Proposed Rule”) to require providers and foreign resellers of U.S. Infrastructure-as-a-Service (“IaaS”) products to (i) verify the identity of their foreign customers and (ii) notify the Department when a foreign person transacts with that provider or reseller to train a large artificial intelligence (“AI”) model with potential capabilities that could be used in malicious cyber-enabled activity. The proposed rule also contemplates that the Department may impose special measures to be undertaken by U.S. IaaS providers to deter foreign malicious cyber actors’ use of U.S. IaaS products. The accompanying request for comments has a deadline of April 29, 2024.Continue Reading Department of Commerce Issues Proposed Rule to Regulate Infrastructure-as-a-Service Providers and Resellers
FTC on Models-as-a-Service
On January 9, the FTC published a blog post discussing privacy and confidentiality obligations for companies that provide artificial intelligence (“AI”) services. The FTC described “model-as-a-service” companies as those that develop, host, and provide pre-trained AI models to users and businesses through end-user interfaces or application programming interfaces (“APIs”). According to the FTC, when model-as-a-service