AI

On February 13, 2024, the European Parliament’s Committee on Internal Market and Consumer Protection and its Committee on Civil Liberties, Justice and Home Affairs (the “Parliament Committees”) voted overwhelmingly to adopt the EU’s proposed AI Act. This follows a vote to approve the text earlier this month by the Council of Ministers’ Permanent Representatives Committee (“Coreper“). This brings the Act closer to final; the last step in the legislative process is a vote by the full European Parliament, currently scheduled to take place in April 2024.

The compromise text approved by Coreper and the Parliament Committees includes a number of significant changes as compared to earlier drafts. In this blog post, we set out some key takeaways.Continue Reading EU AI Act: Key Takeaways from the Compromise Text

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 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

A new post on the Covington Inside Global Tech blog discusses key 1Q24 deadlines under the Biden administration’s October 2023 Executive Order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. 

Several agencies are expected to satisfy milestones related to the Executive Order’s key requirements in the coming months.  For example, the Secretary

A new post on the Covington Inside Global Tech blog highlights key legislative, regulatory, and litigation developments in the fourth quarter of 2023 and early January 2024 related to technology issues.  These included developments related to artificial intelligence (“AI”), connected and automated vehicles (“CAVs”), data privacy, and cybersecurity. As noted by the post, some of

On December 19, 2023, the Federal Trade Commission (“FTC”) announced that it reached a settlement with Rite Aid Corporation and Rite Aid Headquarters Corporation (collectively, “Rite Aid”) to resolve allegations that the companies violated Section 5 of the FTC Act (as well as a prior settlement with the agency) by failing to implement reasonable procedures to prevent harm to consumers while using facial recognition technology.  As part of the settlement, Rite Aid agreed to cease using “Facial Recognition or Analysis Systems” (defined below) for five years and establish a monitoring program to address certain risks if it seeks to use such systems for certain purposes in the future.Continue Reading Rite Aid Settles FTC Allegations Regarding Use of Facial Recognition Technology

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

Ahead of its December 8 board meeting, the California Privacy Protection Agency (CPPA) has issued draft risk assessment regulations.  The CPPA has yet to initiate the formal rulemaking process and has stated that it expects to begin formal rulemaking next year, at which time it will also consider draft regulations covering “automated decisionmaking technology” (ADMT), cybersecurity audits, and revisions to existing regulations.  Accordingly, the draft risk assessment regulations are subject to change.  Below are the key takeaways:Continue Reading CPPA Releases Draft Risk Assessment Regulations

Ahead of its December 8 board meeting, the California Privacy Protection Agency (CPPA) has issued draft “automated decisionmaking technology” (ADMT) regulations.  The CPPA has yet to initiate the formal rulemaking process and has stated that it expects to begin formal rulemaking next year.  Accordingly, the draft ADMT regulations are subject to change.  Below are the key takeaways:Continue Reading CPPA Releases Draft Automated Decisionmaking Technology Regulations