On 6 October 2021, the European Parliament (“EP”) voted in favor of a resolution banning the use of facial recognition technology (“FRT”) by law enforcement in public spaces. The resolution forms part of a non-legislative report on the use of artificial intelligence (“AI”) by the police and judicial authorities in criminal matters (“AI Report”) published by the EP’s Committee on Civil Liberties, Justice and Home Affairs (“LIBE”) in July 2021. The AI Report will now be sent to the European Commission, which has three months to either (i) submit, or indicate it will submit, a legislative proposal on the use of AI by the police and judicial authorities as set out in the AI Report; or (ii) if it chooses not to submit a proposal, explain why.
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The UK Government Publishes its AI Strategy
On 22 September 2021, the UK Government published its 10-year strategy on artificial intelligence (“AI”; the “UK AI Strategy”).
The UK AI Strategy has three main pillars: (1) investing and planning for the long-term requirements of the UK’s AI ecosystem; (2) supporting the transition to an AI-enabled economy across all sectors and regions of the UK; and (3) ensuring that the UK gets the national and international governance of AI technologies “right”.
The approach to AI regulation as set out in the UK AI Strategy is largely pro-innovation, in line with the UK Government’s Plan for Digital Regulation published in July 2021.
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European Commission Proposes New Artificial Intelligence Regulation
In April 2021, the European Commission released its proposed Regulation Laying Down Harmonized Rules on Artificial Intelligence (the “Regulation”), which would establish rules on the development, placing on the market, and use of artificial intelligence systems (“AI systems”) across the EU. The proposal, comprising 85 articles and nine annexes, is part of a wider package of Commission initiatives aimed at positioning the EU as a world leader in trustworthy and ethical AI and technological innovation.
The Commission’s objectives with the Regulation are twofold: to promote the development of AI technologies and harness their potential benefits, while also protecting individuals against potential threats to their health, safety, and fundamental rights posed by AI systems. To that end, the Commission proposal focuses primarily on AI systems identified as “high-risk,” but also prohibits three AI practices and imposes transparency obligations on providers of certain non-high-risk AI systems as well. Notably, it would impose significant administrative costs on high-risk AI systems of around 10 percent of the underlying value, based on compliance, oversight, and verification costs. This blog highlights several key aspects of the proposal.
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European Commission Launches Consultation on Initiative to Fight Child Sexual Abuse
On February 11, 2021, the European Commission launched a public consultation on its initiative to fight child sexual abuse online (the “Initiative”), which aims to impose obligations on online service providers to detect child sexual abuse online and to report it to public authorities. The consultation is part of the data collection activities announced in the Initiative’s inception impact assessment issued in December last year. The consultation runs until April 15, 2021, and the Commission intends to propose the necessary legislation by the end of the second quarter of 2021.
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The Council of Europe Publishes Feasibility Study on Developing a Legal Instrument for Ethical AI
On 17 December 2020, the Council of Europe’s* Ad hoc Committee on Artificial Intelligence (CAHAI) published a Feasibility Study (the “Study”) on Artificial Intelligence (AI) legal standards. The Study examines the feasibility and potential elements of a legal framework for the development and deployment of AI, based on the Council of Europe’s human rights standards. Its main conclusion is that current regulations do not suffice in creating the necessary legal certainty, trust, and level playing field needed to guide the development of AI. Accordingly, it proposes the development of a new legal framework for AI consisting of both binding and non-binding Council of Europe instruments.
The Study recognizes the major opportunities of AI systems to promote societal development and human rights. Alongside these opportunities, it also identifies the risks that AI could endanger rights protected by the European Convention on Human Rights (ECHR), as well as democracy and the rule of law. Examples of the risks to human rights cited in the Study include AI systems that undermine the right to equality and non-discrimination by perpetuating biases and stereotypes (e.g., in employment), and AI-driven surveillance and tracking applications that jeopardise individuals’ right to freedom of assembly and expression.
UK Government Plans for an Online Safety Bill
In April 2019, the UK Government published its Online Harms White Paper and launched a Consultation. In February 2020, the Government published its initial response to that Consultation. In its 15 December 2020 full response to the Online Harms White Paper Consultation, the Government outlined its vision for tackling harmful content online through a new regulatory framework, to be set out in a new Online Safety Bill (“OSB”).
This development comes at a time of heightened scrutiny of, and regulatory changes to, digital services and markets. Earlier this month, the UK Competition and Markets Authority published recommendations to the UK Government on the design and implementation of a new regulatory regime for digital markets (see our update here).
The UK Government is keen to ensure that policy initiatives in this sector are coordinated with similar legislation, including those in the US and the EU. The European Commission also published its proposal for a Digital Services Act on 15 December, proposing a somewhat similar system for regulating illegal online content that puts greater responsibilities on technology companies.
Key points of the UK Government’s plans for the OSB are set out below.
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The European Commission publishes a proposal for a Regulation on European Data Governance (the Data Governance Act)
On 25 November 2020, the European Commission published a proposal for a Regulation on European Data Governance (“Data Governance Act”). The proposed Act aims to facilitate data sharing across the EU and between sectors, and is one of the deliverables included in the European Strategy for Data, adopted in February 2020. (See our previous blog here for a summary of the Commission’s European Strategy for Data.) The press release accompanying the proposed Act states that more specific proposals on European data spaces are expected to follow in 2021, and will be complemented by a Data Act to foster business-to-business and business-to-government data sharing.
The proposed Data Governance Act sets out rules relating to the following:
- Conditions for reuse of public sector data that is subject to existing protections, such as commercial confidentiality, intellectual property, or data protection;
- Obligations on “providers of data sharing services,” defined as entities that provide various types of data intermediary services;
- Introduction of the concept of “data altruism” and the possibility for organisations to register as a “Data Altruism Organisation recognised in the Union”; and
- Establishment of a “European Data Innovation Board,” a new formal expert group chaired by the Commission.
EDPB adopts recommendations on international data transfers following Schrems II decision
On 11 November 2020, the European Data Protection Board (“EDPB”) issued two draft recommendations relating to the rules on how organizations may lawfully transfer personal data from the EU to countries outside the EU (“third countries”). These draft recommendations, which are non-final and open for public consultation until 30 November 2020, follow the EU Court of Justice (“CJEU”) decision in Case C-311/18 (“Schrems II”). (For a more in-depth summary of the CJEU decision, please see our blog post here and our audiocast here. The EDPB also published on 24 July 2020 FAQs on the Schrems II decision here).
The two recommendations adopted by the EDPB are:
- Recommendations 01/2020 on measures that supplement transfer tools to ensure compliance with the EU level of protection of personal data (“Draft Recommendations on Supplementary Measures”); and
- Recommendations 02/2020 on the European Essential Guarantees for surveillance measures (“Recommendations on EEG”).
AI, IoT, and CAV Legislative Update: EU Spotlight (Third Quarter 2020)
In this edition of our regular roundup on legislative initiatives related to artificial intelligence (AI), cybersecurity, the Internet of Things (IoT), and connected and autonomous vehicles (CAVs), we focus on key developments in the European Union (EU).
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UK ICO publishes guidance on Artificial Intelligence
On July 30, 2020, the UK Information Commissioner’s Office (“ICO”) published its final guidance on Artificial Intelligence (the “Guidance”). The Guidance sets out a framework for auditing AI systems for compliance with data protection obligations under the GDPR and the UK Data Protection Act 2018. The Guidance builds on the ICO’s earlier commitment to enable good data protection practice in AI, and on previous guidance and blogs issued on specific issues relating to AI (for example, on explaining decisions on AI, trade-offs, and bias and discrimination, all covered in Covington blogs).
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