Intelligent CIO North America Issue 51 | Page 33

EDITOR ’ S QUESTION

Nerijus Šveistys , Senior Legal Counsel , Oxylabs t

The AI boom was followed by the rush to regulate commercial AI development . What are the main legal outcomes of this rush so far ?
The boom of the last few years appears to have sparked a push to establish regulatory frameworks for AI governance . This is a natural development , as the rise of AI seems to pose issues in data privacy and protection , bias and discrimination , safety , intellectual property and other legal areas – as well as ethics that need to be addressed .
As for specific outcomes , China already started regulating the use of certain AI models back in 2021 . We also have the AI Act of the EU which just came into force and will become fully effective by 2026 . Other jurisdictions are following up with their own measures regulating the AI ecosystem .
What are the differences between the approach to AI regulation in the EU and other jurisdictions ? introduced as these models were making a splash in commercial usage .
Meanwhile , the US has not yet enacted any federallevel AI regulations . There are proposed regulations at the state level , such as the so-called California AI Act – but even if they come into power , it may still take some time before they do .
Is there a delay in regulation due to the pushback from business ? Can these differences in regulation lead to unequal business development and innovation ?
They certainly can . More rigid regulatory frameworks may impose compliance costs for businesses in the AI field and stifle competitiveness and innovation . On the other hand , they bring the benefits of protecting consumers and adhering to certain ethical norms .
The main difference we can see is the comparative quickness with which the EU has released a uniform regulation to govern the use of all types of AI . Other large jurisdictions , such as China and the US , appear to have taken different approaches . China is regulating specific areas of AI step-by-step , addressing what is recognized as risks . In 2021 , they introduced regulation on recommendation algorithms , which have by then increased their capabilities in digital advertising . It was followed by regulations on deep synthesis models or , in common terms , deepfakes and content generation in 2022 . And then , in 2023 , regulation on generative AI models was
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