Building AI and Machine Learning Technologies: Data Licensing Tips and Traps
Data is the fuel for software development, and developers use historical data from existing products to train algorithms and build AI and machine learning models. Companies are well aware of privacy and regulatory restrictions on data use, but often do not consider the potential impact of data use restrictions on intellectual property ownership and use rights. (more…)
EU Council Publishes Changes to Artificial Intelligence Act Proposal
On 29 November 2021, the Slovenian Presidency (the “Presidency”) of the European Council published its compromise text (“Compromise Text”) on the European Union’s (“EU”) draft Artificial Intelligence Act (“AI Act” or “Act”) alongside a progress report on the Act. While the overall structure of the AI Act and many of its key provisions (including, those relating to potential fines for non-compliance), remain the same, there are some significant proposed changes to the Act which we have noted below including, for example, a new Article on general purpose AI systems. (more…)
5 Global Data Protection Trends To Watch In 2022
*This article was first published by Law360 on January 3, 2022.
A recent discussion with Elizabeth Denham and Claudia Berg of the U.K. Information Commissioner’s Office provided ample food for thought on the direction in which data protection regulation both in the U.K. and internationally is headed, including key trends to watch for in data protection.
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FTC Announces it May Pursue Rulemaking to Combat Discrimination in AI
On December 10, the Federal Trade Commission (FTC) announced it is considering a rulemaking on commercial Artificial Intelligence (AI). The purpose of the rulemaking, according to an advanced notice of proposed rulemaking (ANPRM) titled “Trade Regulation in Commercial Surveillance,” would be “to curb lax security practices, limit privacy abuses, and ensure that algorithmic decision-making does not result in unlawful discrimination.”
While not formally part of the rulemaking process mandated by the Administrative Procedure Act, advanced notices allow agencies to solicit public comment before drafting more specific proposals. The FTC has not yet issued privacy or artificial intelligence rules, though it has indicated that such rulemaking is on the horizon. The December 10 ANPRM is another signal that the FTC is gearing up to develop substantive privacy guidelines. (more…)
How Artificial Intelligence Manufacturers Can Protect Themselves Against Future Negligence Claims
Innovative medical devices have changed the healthcare landscape and will continue making dramatic improvements in patient care. Nevertheless, the growth of such devices will inevitably lead to increased litigation over their alleged failures. All companies developing healthcare tech therefore need to consider measures to protect themselves against potential claims. (more…)
National AI Strategy: The UK Government Publishes Its Artificial Intelligence Strategy for the Next Decade
On 22 September 2021, the UK Government (the “Government”) published its Artificial Intelligence (“AI”) strategy. The paper outlines the Government’s plan to make Britain a “global superpower” in the AI arena, and sets out an agenda to build the most “pro-innovation regulatory environment in the world”. This post highlights some of the key elements from the UK AI strategy. Significantly, the UK’s proposed approach may diverge in some respects from the EU’s GDPR. For example, the UK strategy includes consideration of whether to drop Article 22’s restrictions on automated decision-making, and whether to maintain the UK’s current sectoral approach to AI regulation. The UK will publish a White Paper on regulating AI in early 2022, which will provide a basis for further consultation and discussion with interested or affected groups before draft legislation is formally presented to the UK Parliament. (more…)
SEC Fines Alternative Data Provider for Securities Fraud
On September 14, 2021, the U.S. Securities and Exchange Commission (SEC) settled an enforcement action against App Annie Inc., an alternative data provider for the mobile app industry, and its former CEO Bertrand Schmitt. The SEC charged App Annie and Schmitt with securities fraud, under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, for engaging in deceptive practices and materially misrepresenting how App Annie derived its alternative data, thereby inducing trading firms to become subscribers to use App Annie’s data in their decisions to buy and sell securities. (more…)
Federal Trade Commission Hosts Panels Related to Consumer Privacy and Data Security at PrivacyCon
This summer, the Federal Trade Commission (“FTC”) hosted its sixth annual PrivacyCon, an event focused on the latest research and trends related to consumer privacy and data security. This years’ event was divided into six panels: Algorithms; Privacy Considerations and Understandings; Adtech; Internet of Things; Privacy-Children and Teens; and, Privacy and the Pandemic. Welcoming attendees and kicking off the event, Commissioner Rebecca Kelly Slaughter called for minimization of data abuses and for a move away from the notice and consent model of privacy in favor of data minimization. PrivacyCon topics are selected by the FTC and often seen as an indication of enforcement priorities. (more…)
