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UK Sets Out It’s “Pro-Innovation” Approach To AI Regulation

On 29 March 2023, the UK’s Department for Science Innovation and Technology (“DSIT”) published its long awaited White Paper on its “pro-innovation approach to AI regulation” (the “White Paper”), along with a corresponding impact assessment. The White Paper builds on the “proportionate, light touch and forward-looking” approach to AI regulation set out in the policy paper published in July 2022. Importantly, the UK has decided to take a different approach to regulating AI compared to the EU, opting for a decentralised sector-specific approach, with no new legislation expected at this time. Instead, the UK will regulate AI primarily through sector-specific, principles based guidance and existing laws, with an emphasis on an agile and innovation-friendly approach. This is in significant contrast to the EU’s proposed AI Act which is a standalone piece of horizontal legislation regulating all AI systems, irrespective of industry.

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How the China Personal Information Protection Law Applies to Foreign Asset Managers

Since China’s Personal Information Protection Law (PIPL) came into effect in November 2021, there has been widespread uncertainty amongst offshore fund managers and investors with entities outside Mainland China as to how and whether the regime applies to them. Given the potential for foreign asset managers to overlook or misinterpret PIPL, this brief update outlines some guidance as to how PIPL can apply, and to whom, in a practical context.

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EU Moving Closer to an AI Act – Key Areas of Impact for Life Sciences/MedTech Companies

The European Union is moving closer to adopting the first major legislation to horizontally regulate artificial intelligence. Today, the European Parliament (Parliament) reached a provisional agreement on its internal position on the draft Artificial Intelligence Regulation (AI Act). The text will be adopted by Parliament committees in the coming weeks and by the Parliament plenary in June. The plenary adoption will trigger the next legislative step of trilogue negotiations with the European Council to agree on a final text. Once adopted, according to the text, the AI Act will become applicable 24 months after its entry into force (or 36 months according to the Council’s position), which is currently expected in the second half of 2025, at the earliest.

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New EU Cyber Law for the Financial Services Industry with Significant Impact on ICT Service Providers

The new EU Regulation on Digital Operational Resilience for the Financial Sector (DORA) recently entered into force. DORA establishes cybersecurity requirements for information and communication technology (ICT) systems supporting the business processes of financial entities and represents a paradigm shift for the ICT sector.  Critical ICT third-party service providers, who are providing services to regulated financial entities, will also be directly regulated under DORA and subject to regulatory supervision by a regulator to be established under DORA (a so-called ‘Lead Overseer’).

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U.S. Department of Commerce Seeks Input on AI Policy, Calls Trustworthy AI an Important Federal Objective

On April 13, 2023, the United States Department of Commerce National Telecommunication and Information Administration (“NTIA”) published a request for comment (“RFC”) seeking public input on Artificial Intelligence (“AI”) accountability. The RFC seeks to understand which measures—both self-regulatory and regulatory—have the capacity to ensure that AI systems are “legal, effective, ethical, safe, and otherwise trustworthy.”  The RFC adopts a broad definition of “AI systems,” noting that they include all automated or algorithmic systems that generate predictions, recommendations, or decisions.

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Washington State Enacts My Health My Data Act, Broadly Regulating Health-Related Data With a Private Right of Action

On April 27, 2023, Washington Gov. Jay Inslee, a Democrat, signed into law the state’s My Health My Data Act (the Act), which will become effective on March 31, 2024 (June 30, 2024, for small businesses). Despite its name, this is a comprehensive privacy bill that will affect many entities, including those outside of the traditional “health” context. The rights and obligations may apply to individuals other than Washington residents, as the law defines consumers as including persons whose data is merely collected or otherwise processed in the state.

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Now You See Them, Now You Don’t: Regulatory Risks of Ephemeral Messages

Corporate use of ephemeral messaging applications (communications that disappear after a set time) has become increasingly common across the globe in recent years, with companies recognizing its value in decreasing data storage costs and providing employees a convenient method for communicating quickly with customers and clients. However, the prevalence of these messaging applications in the corporate context has caused regulators to grow concerned about how encrypted and ephemeral messaging might affect regulatory obligations related to data preservation, employee monitoring, and compliance.

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New UK Digital Markets Regime: Key Differences With the EU Digital Markets Act

On April 25, 2023, the UK government published the Digital Markets, Competition and Consumers Bill (the UK Bill). The Bill proposes wide-ranging reforms to UK competition and consumer law, including obligations for digital platforms designated with so-called “strategic market status” (SMS).

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<a target=‘_blank’ href="https://www.sidley.com/en/people/a/akowuah-kwaku-a">Kwaku A. Akowuah</a>

Kwaku A. Akowuah

Washington, D.C.
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Sheila A.G. Armbrust

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Francesca Blythe

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Colleen Theresa Brown

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Thomas D. Cunningham

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Sharon R. Flanagan

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Tomoki Ishiara

Tokyo
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Amy P. Lally

Century City
<a target=‘_blank’ href="https://www.sidley.com/en/people/l/lashway-david-c">David C. Lashway</a>

David C. Lashway

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/l/long-william-rm">William RM Long</a>

William RM Long

London
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Joan M. Loughnane

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Geeta Malhotra

Chicago
<a target=‘_blank’ href="https://www.sidley.com/en/people/r/ransom-rollin-a">Rollin A. Ransom</a>

Rollin A. Ransom

Los Angeles
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Alan Charles Raul

Washington, D.C., New York
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Jennifer B. Seale

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Yuet Ming Tham

Singapore, Hong Kong
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Jonathan M. Wilan

Washington, D.C.
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John W. Woods Jr.

Washington, D.C.

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