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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, including related to artificial intelligence. 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.

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On January 24, 2024, the European Commission (“Commission”) announced that, following the political agreement reached in December 2023 on the EU AI Act (“AI Act”) (see our previous blog here), the Commission intends to proceed with a package of measures (“AI Innovation Strategy”) to support AI startups and small and medium-size enterprises (“SMEs”) in the EU.

Alongside these measures, the Commission also announced the creation of the European AI Office (“AI Office”), which is due to begin formal operations on February 21, 2024.

This blog post provides a high-level summary of these two announcements, in addition to some takeaways to bear in mind as we draw closer to the adoption of the AI Act.

Continue Reading European Commission Announces New Package of AI Measures

On 15 January 2024, the UK’s Information Commissioner’s Office (“ICO”) announced the launch of a consultation series (“Consultation”) on how elements of data protection law apply to the development and use of generative AI (“GenAI”). For the purposes of the Consultation, GenAI refers to “AI models that can create new content e.g., text, computer code, audio, music, images, and videos”.

As part of the Consultation, the ICO will publish a series of chapters over the coming months outlining their thinking on how the UK GDPR and Part 2 of the Data Protection Act 2018 apply to the development and use of GenAI. The first chapter, published in tandem with the Consultation’s announcement, covers the lawful basis, under UK data protection law, for web scraping of personal data to train GenAI models. Interested stakeholders are invited to provide feedback to the ICO by 1 March 2024.

Continue Reading ICO Launches Consultation Series on Generative AI

On December 9, 2023, the European Parliament, the Council of the European Union and the European Commission reached a political agreement on the EU Artificial Intelligence Act (“AI Act”) (see here for the Parliament’s press statement, here for the Council’s statement, and here for the Commission’s statement). Following three days of intense negotiations, during the fifth “trilogue” discussions amongst the EU institutions, negotiators reached an agreement on key topics, including: (i) the scope of the AI Act; (ii) AI systems classified as “high-risk” under the Act; and (iii) law enforcement exemptions.

As described in our previous blog posts on the AI Act (see here, here, and here), the Act will establish a comprehensive and horizontal law governing the development, import, deployment and use of AI systems in the EU. In this blog post, we provide a high-level summary of the main points EU legislators appear to have agreed upon, based on the press releases linked above and a further Q&A published by the Commission. However, the text of the political agreement is not yet publicly available. Further, although a political agreement has been reached, a number of details remain to be finalized in follow-up technical working meetings over the coming weeks.

Continue Reading EU Artificial Intelligence Act: Nearing the Finish Line

On October 30, 2023, days ahead of government leaders convening in the UK for an international AI Safety Summit, the White House issued an Executive Order (“EO”) outlining an expansive strategy to support the development and deployment of safe and secure AI technologies (for further details on the EO, see our blog here). As readers will be aware, the European Commission released its proposed Regulation Laying Down Harmonized Rules on Artificial Intelligence (the EU “AI Act”) in 2021 (see our blog here). EU lawmakers are currently negotiating changes to the Commission text, with hopes of finalizing the text by the end of this year, although many of its obligations would only begin to apply to regulated entities in 2026 or later.

The EO and the AI Act stand as two important developments shaping the future of global AI governance and regulation. This blog post discusses key similarities and differences between the two.

Continue Reading From Washington to Brussels: A Comparative Look at the Biden Administration’s Executive Order and the EU’s AI Act

A would-be technical development could have potentially significant consequences for cloud service providers established outside the EU. The proposed EU Cybersecurity Certification Scheme for Cloud Services (EUCS)—which has been developed by the EU cybersecurity agency ENISA over the past two years and is expected to be adopted by the European Commission as an implementing act in Q1 2024—would, if adopted in its current form, establish certain requirements that could:

  1. exclude non-EU cloud providers from providing certain (“high” level) services to European companies, and
  2. preclude EU cloud customers from accessing the services of these non-EU providers.
Continue Reading Implications of the EU Cybersecurity Scheme for Cloud Services

On June 27, 2023, the European Parliament and the Council of the EU reached a political agreement on the Data Act (see our previous blog post here), after 18 months of negotiations since the tabling of the Commission’s proposal in February 2022 (see our previous blog post here).  EU lawmakers bridged their differences on a number of topics, including governance matters, territorial scope, protection of trade secrets, and certain defined terms, among others.

The Data Act is a key component of the European strategy for data. Its objective is to remove barriers to the use and re-use of non-personal data, particularly as it relates to data generated by connected products and related services, including virtual assistants. It also seeks to facilitate the ability of customers to switch between providers of data processing services.

We’ve outlined below some key aspects of the new legislation.

Continue Reading European Parliament and Council Release Agreed Text on Data Act

On 21 June 2023, at the close of a roundtable meeting of the G7 Data Protection and Privacy Authorities, regulators from the United States, France, Germany, Italy, United Kingdom, Canada and Japan published a joint “Statement on Generative AI” (“Statement”) (available here). In the Statement, regulators identify a range of data protection-related concerns they believe are raised by generative AI tools, including legal authority for processing personal information, and transparency, explainability, and security. The group of regulators also call on companies to “embed privacy in the design conception, operation, and management” of generative AI tools.

In advance of the G7 meeting, on 15 June 2023, the UK Information Commissioner’s Office (“ICO”) separately announced that it will be “checking” whether businesses have addressed privacy risks before deploying generative AI, and “taking action where there is risk of harm to people through poor use of their data”.

Continue Reading UK and G7 Privacy Authorities Warn of Privacy Risks Raised by Generative AI

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.

Continue Reading EU and US Lawmakers Agree to Draft AI Code of Conduct

On 4 May 2023, the UK Competition and Markets Authority (“CMA”) announced it is launching a review into AI foundation models and their potential implications for the UK competition and consumer protection regime. The CMA’s review is part of the UK’s wider approach to AI regulation which will require existing regulators to take responsibility for promoting and overseeing responsible AI within their sectors (for further information on the UK Government’s strategy, including its recent AI White Paper, see our blog post here). The UK Information Commissioner’s Office (“ICO”) has also recently published guidance for businesses on best practices for data protection-compliant AI (see our post here for more details).

Continue Reading UK’s Competition and Markets Authority Launches Review into AI Foundation Models

On 29 March 2023, the UK Information Commissioner’s Office (“ICO”) published updated Guidance on AI and data protection (the “Guidance”) following “requests from UK industry to clarify requirements for fairness in AI”. AI has been a strategic priority for the ICO for several years. In 2020, the ICO published its first set of guidance on AI (as discussed in our blog post here) which it complemented with supplementary recommendations on Explaining Decisions Made with AI and an AI and Data Protection risk toolkit in 2022. The updated Guidance forms part of the UK’s wider efforts to adopt a “pro-innovation” approach to AI regulation which will require existing regulators to take responsibility for promoting and overseeing responsible AI within their sectors (for further information on the UK Government’s approach to AI regulation, see our blog post here).

The updated Guidance covers the ICO’s view of best practice for data protection-compliant AI, as well as how the ICO interprets data protection law in the context of AI systems that process personal data. The Guidance has been restructured in line with the UK GDPR’s data protection principles, and features new content, including guidance on fairness, transparency, lawfulness and accountability when using AI systems.

Continue Reading UK ICO Updates Guidance on Artificial Intelligence and Data Protection