Latest Developments on AI in the EU: the Saga Continues
EU AI Act
Up until recently, political agreement on the final text of the EU Artificial Intelligence Regulation (AI Act) was expected on 6 December 2023. However, latest developments indicated roadblocks in the negotiations due to three key discussion points – please see our previous blog post here. EU officials are reported to be meeting twice this week to discuss a compromise mandate on EU governments’ position on the text, in preparation of the political meeting on 6 December. (more…)
Agreement Reached on the EU’s Data Act
On 27 November 2023, the Council adopted the final text of the Data Act which facilitates (and in certain cases, mandates) the access to (personal and non-personal) data. The Data Act was originally proposed by the European Commission in 2022. Alongside the EU Data Governance Act (which came into force in June 2022) the Data Act forms part of the EU’s Data Strategy which aims to “make the EU a leader in a data-driven society”. (more…)
Preparing for the EU AI Act
Join Sidley and OneTrust DataGuidance for a webinar on the EU AI Act. This discussion with industry panellists will cover initial reactions to the (anticipated) political agreement on the EU AI Act following key negotiations by the European legislative bodies on December 6, 2023.
The Tenth Edition of Lexology In-Depth: Privacy, Data Protection and Cybersecurity (formerly The Privacy, Data Protection and Cybersecurity Law Review) is now available
The tenth edition of Lexology In-Depth: Privacy, Data Protection and Cybersecurity (formerly The Privacy, Data Protection and Cybersecurity Law Review) provides a global overview of the evolving legal and regulatory regimes governing data privacy and security, at a time when both privacy and security are increasingly challenged by the fast-paced development of technologies such as large language models, generative AI, and self-teaching/self-replicating applications. A number of lawyers from Sidley’s global Privacy and Cybersecurity practice have contributed to this publication. See the chapters below for a closer look at this developing area of law.
EU Moving Closer to an AI Act?
On 24 October 2023, the European Parliament and Member States concluded a fourth round of trilogue discussions on the draft Artificial Intelligence Regulation (AI Act). Policymakers agreed on provisions to classify high-risk AI systems and also developed general guidance for the use of “enhanced” foundation models. However, the negotiations did not lead to substantial progress on provisions for prohibitions in relation to the use of AI by law enforcement. The next round of trilogue discussions will take place on 6 December 2023.
The Finalization of the UK-U.S. Data Bridge
On September 21, 2023, the UK and the U.S. announced the UK extension to the EU-U.S. Data Privacy Framework (DPF), which will come into effect on October 12. A new UK adequacy regulation provides that the UK Secretary of State for Science, Innovation and Technology has determined that the U.S. provides adequate levels of protection for personal data in certain transfers and brings the UK within the DPF announced in July 2023. The U.S. Attorney General also designated the UK as a “qualifying state” under an Executive Order on September 18 for the purposes of the DPF. This means that on October 12, UK businesses will be able to transfer personal data to U.S. organizations self-certified under the DPF.
New EU FIDA Proposal: How Does This Affect GDPR?
The European Commission issued the Financial Data Access Act (FIDA) proposal in June this year. FIDA will create a legislative framework that aims to “bring payments and the wider financial sector into the digital age” by facilitating the sharing of and access to customer financial data (whether of businesses or consumers).
AI Foundation Models: UK CMA’s Initial Report
The CMA has set out its emerging thinking on the functioning of competition and consumer protection in the market for foundation models.
EU Commission Adopts New Rules for GDPR Enforcement: the Beginning of a Centralized Enforcement Model?
On 4 July 2023, the EU Commission proposed a new Regulation for procedural rules to standardize and streamline cooperation between EU Member State Data Protection Authorities (DPAs) when enforcing the EU General Data Protection Regulation (GDPR) in cross-border cases (GDPR Procedural Regulation). The GDPR adopts a decentralized enforcement model. National EU Member State DPAs are competent to enforce the GDPR on their respective territories. However, in cases with cross-border elements, the GDPR requires all concerned DPAs to cooperate in accordance with the GDPR’s “one-stop-shop” through cooperation and consistency mechanisms. Although these mechanisms establish key principles of cooperation and provide the basis for consistent application of the GDPR throughout the EU, the EU Commission determined more legislative action was needed to increase efficiency and harmonization of cross-border GDPR enforcement action.
UK ICO Scrutinizes Use of Generative AI
Following the EU’s increased focus on generative AI with the inclusion of foundation and generative AI in the latest text of the EU AI Act (see our post here), the UK now also follows suit, with the UK’s Information Commissioner’s Office (“ICO”) communicating on 15 June 2023 its intention to “review key businesses’ use of generative AI.” The ICO warned businesses not to be “blind to AI risks” especially in a “rush to see opportunity” with generative AI. Generative AI is capable of generating content e.g., complex text, images, audio or video, etc. and is viewed as involving more risk than other AI models because of its ability to be used across different sectors (e.g., law enforcement, immigration, employment, insurance and health), and so have a greater impact across society – including in relation to vulnerable groups.
