Artificial Intelligence (Regulation) Bill

On 10th May 2024, the Artificial Intelligence (Regulation) Bill will have its third reading in the House of Lords.

The Bill proposes that any business that develops, deploys, or uses AI should:
• Be transparent about it;
• Test it thoroughly and transparently and comply with applicable laws, including in relation to data 15 protection, privacy, and intellectual property.
• Have a designated AI officer who will have duties that ensure the safe, ethical, unbiased, and non-discriminatory use of AI by the business and;
• ensure so far as reasonably practicable, that data used by the business in any AI technology is unbiased.

There is an emphasis on transparency as the Bill states that any person involved in training AI must provide a record of all third-party data used in that training to the AI authority and assure the AI authority that such data and intellectual property is being used with informed consent and in compliance with all the applicable intellectual property and copyright laws. Informed consent can be provided as express (opt-in) or implied (opt-out).

The Bill amends the Companies Act 2006 by introducing an obligation for quoted companies to include information about any development, deployment, or use of AI by the company, and the name and activities of the AI officer designated under the Artificial Intelligence (Regulation) Act 2024 in their business strategies. Reports should also include information about any policies of the company in relation to AI and the effectiveness of those policies.

If the bill is passed into law, regulations enacted to support with the implementation of this law could create offences which could require payment of fees, penalties, and fines.

As AI is fast growing, it is suggested that we should begin to familiarise ourselves with regulations that may be applicable if you begin or plan to use AI in your role and business.

Credit: REC