Sten Vesterli's Blog

Are your AI Projects Legal?

Because the IT industry has failed to agree on any meaningful guidelines for AI usage, regulators are now stepping in. In order to get the attention of the global giants, the proposed EU regulation is threatening with GDPR-style fines of up to 6% of global sales. The rules outlaw some usage, like real-time facial recognition, and place strict limits on other uses. For “high-risk” use by police and courts, companies must provide risk assessment and documentation of how the system comes to its recommendations.

In the US, the Federal Trade Commission has also just weighed in. In a blog post, they clarified that selling or using biased AI might constitute “unfair or deceptive practice” and be subject to fines.

As a CIO or CTO, check who is responsible for ensuring your AI projects adhere to all relevant regulations. Each individual project cannot be responsible for keeping up with rapidly developing global regulations. If you have not appointed someone to keep watch over your AI project, the blame will end on your desk when your organization is found to violate AI regulations you weren’t even aware of.

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