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    Eye On A.I.

    #129 Alexandra Geese: Demystifying AI Regulations in Europe & Beyond

    Wed Jul 12 2023
    AI ActEU legislationAI regulationsData governanceFoundation modelsEnforcement mechanisms

    Description

    The episode discusses the AI Act, the first comprehensive attempt to legislate AI in the EU. It covers the act's objectives, development of AI, differences in regulations and negotiations, responsibility and enforcement, implementation and future considerations, challenges and uncertainties in AI regulation, and implications for the future.

    Insights

    The AI Act aims to regulate applications of AI rather than the technology itself

    The act introduces different categories and bans applications like social scoring and remote biometric identification in the public sphere. High-risk applications require authorization and human oversight.

    Data governance and transparency are crucial in AI development

    Development of AI should involve independent experts and documentation of non-milligable risks. Providers of foundational models should be transparent about copyrighted materials used in training.

    Conservative governments tend to be more open to corporate interests in AI regulations

    The Council tends to be more conservative than the Parliament in terms of AI regulations. Conservative governments are more open to what corporations want.

    Responsibility for fulfilling obligations under the legislation lies with providers of foundational models

    European legislation on foundation models requires providers to take responsibility for identifying risks and proposing risk mitigation. The responsibility should lie with providers rather than smaller companies implementing them.

    Enforcement of the AI Act is uncertain but fines may become a significant threat to companies

    Enforcement will be carried out by national authorities, with fines as initial penalties. The efficacy of fines is questionable but may improve over time.

    Implementation risks include bias, discrimination, and safety concerns

    Implementing foundation models in other applications may lead to bias and discrimination, requiring moderation efforts. AI systems may not recognize dangerous situations or ensure safety, especially for children.

    The AI Act is expected to alter every aspect of society and the economy

    The act has received a lot of attention within the AI community and is expected to have a significant impact on society and the economy.

    Europe's future in AI regulation is uncertain but there is optimism

    Europe's future in five or ten years is uncertain, but there is optimism due to the ability to regulate digital technology and pass legislation.

    Concerns exist about surveillance, power concentrations, and environmental impact

    There are concerns about surveillance, power concentrations in the hands of a few companies, and the environmental impact of AI.

    Continued efforts towards positive change are important

    Despite the terrifying aspects of AI, it is important to keep working towards positive change.

    Chapters

    1. The AI Act and its Objectives
    2. Development of AI and Data Governance
    3. Differences in AI Regulations and Negotiations
    4. Responsibility, Risks, and Enforcement
    5. Implementation and Future Considerations
    6. Challenges and Uncertainties in AI Regulation
    7. Implications and Future Outlook
    Summary
    Transcript

    The AI Act and its Objectives

    00:00 - 09:24

    • The AI Act is the first comprehensive attempt to legislate AI in the EU.
    • The act is currently under negotiation with the European Council and the European Commission.
    • The act aims to introduce different categories and regulate applications of artificial intelligence rather than the technology itself.
    • Examples of banned applications include social scoring and remote biometric identification in the public sphere.
    • High-risk applications require authorization or licensing, documentation, and human oversight.
    • Low-risk applications have fewer documentation obligations but can be marketed without authorization.
    • Foundation models, such as CHAT-GPT, have specific obligations for risk identification, reduction, and mitigation.
    • OpenAI initially suggested they may have to withdraw from Europe due to these obligations but later retracted that statement.

    Development of AI and Data Governance

    08:57 - 18:01

    • Development of AI should involve independent experts and documentation of non-milligable risks
    • Data governance is crucial to avoid bias in AI models
    • Providers of foundational models should be transparent about copyrighted materials used in training
    • Enforcement of copyright legislation in relation to AI is still uncertain
    • Europe has concerns about being too restrictive with the AI Act and falling behind economically
    • Europe remains an important market for companies like Google, Meta, and Microsoft
    • Legislators aim to ensure that AI serves humanity and aligns with societal needs
    • Transparency and control over AI instruments are important for building trust

    Differences in AI Regulations and Negotiations

    17:48 - 27:22

    • The Council tends to be more conservative than the Parliament in terms of AI regulations.
    • Conservative governments are more open to what corporations want.
    • The Council came up with its position earlier than the Parliament, but there was a shift in the Parliament's majority after CHET GPT was rolled out in Europe.
    • The conservatives in the Parliament went along with including foundation models, realizing their influence and risks.
    • The Commission had a learning process and would include foundation models if they had to redo their proposal.
    • There is optimism that obligations for testing, analyzing risks, and data governance will stay for foundation models.
    • The issue of biometric recognition in public spaces is a major concern for the Council.
    • It is uncertain how copyright issues related to training data will be addressed for foundation models.
    • Big American AI companies have been involved in consulting with the Commission, European Parliament, and national governments.
    • Negotiation of this act may have a chilling effect on investment and development of products based on foundational models in Europe.
    • The responsibility for fulfilling obligations under the legislation should lie with providers of foundational models rather than smaller companies implementing them.

    Responsibility, Risks, and Enforcement

    26:53 - 35:39

    • The legislation aims to ensure that the burden of fulfilling the legislation lies with a legal subject who has access to and can influence the data used.
    • Companies in Europe want legal certainty and liability for those who develop tools and have access to data.
    • Europe's dynamic legislation is being closely followed by the US Congress, but it is more difficult for them to pass similar laws due to powerful corporations in their country.
    • European legislation on foundation models requires providers to take responsibility for identifying risks and proposing risk mitigation.
    • Legislators need to get involved in understanding and discussing the risks associated with innovative products.
    • The threat debate within the research community has not significantly influenced the direction of the act, which focuses on addressing current risks like bias.
    • There is no formal process of consulting senior researchers like Jan La Cun, Yasuo Benjio, and Jeff Hinton in the European Parliament.

    Implementation and Future Considerations

    35:22 - 45:26

    • The AI act aims to address current risks like bias and security issues.
    • The legislation is focused on addressing existing concerns rather than future possibilities.
    • The timeline for formalizing the law is uncertain, but there is an ambition to conclude it within the current mandate, which ends in June 2024.
    • Enforcement of the law will be carried out by national authorities, with each member state deciding which authority will review models and determine their risk category and compliance with the act.
    • The penalties for non-compliance are initially fines, but their efficacy is questionable. However, as enforcement mechanisms improve, fines may become a significant threat to companies.
    • Military AI tools are not explicitly covered by the act, but governments are subject to stricter rules than private operators in many cases.
    • There may be different AI zones emerging globally based on varying regulatory frameworks and approaches to AI governance.

    Challenges and Uncertainties in AI Regulation

    45:06 - 53:34

    • Regulators are facing challenges with existing models like GPD4 that cannot remove the data they were trained on
    • Grandfathering existing models and applying new standards to future models is a possibility
    • Building models with more control to avoid discrimination lawsuits may be a consideration
    • Implementing foundation models in other applications may lead to bias and discrimination, requiring moderation efforts
    • Transparency and global standards for moderation are important but cultural and political differences between the US and Europe exist
    • Explaining the data used and establishing guardrails could provide legal certainty for companies
    • The shift towards new models or modifying existing ones is uncertain, as developers await legislation
    • Chat GPT performs well on complex tasks but poorly on simple ones, highlighting the hallucination problem
    • Concerns arise regarding who decides what knowledge is accessible through AI systems like Chat GPT
    • Implementation risks include AI systems not recognizing dangerous situations or ensuring safety, especially for children
    • Optimism exists that these questions will be answered within two years

    Implications and Future Outlook

    53:19 - 58:10

    • The AI Act may not be implemented strictly at the beginning as it will take time for providers of models to adjust.
    • The AI Act has received a lot of attention within the AI community and is expected to alter every aspect of society and the economy.
    • Europe's future in five or ten years is uncertain, but there is optimism due to the ability to regulate digital technology and pass legislation.
    • There are concerns about surveillance, power concentrations in the hands of a few companies, and environmental impact.
    • Despite the terrifying aspects, it is important to keep working towards positive change.
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