Title: A Look at the Evolving Scope of Transatlantic AI Regulations
Resource URL: https://natlawreview.com/article/look-evolving-scope-transatlantic-ai-regulations
Publication Date: 2024-08-26
Format Type: Article
Reading Time: 6 minutes
Contributors: David  Kantaros;Natasha Allen;
Source: The National Law Review
Keywords: [AI Regulations, Transatlantic Compliance, EU AI Act, U.S. Executive Order on AI, AI Risk Management]
Job Profiles: Compliance and Regulatory Affairs Team;Data Governance Manager;Legal Counsel;Compliance Manager;Chief Technology Officer (CTO);
Synopsis: In this article, legal experts Natasha Allen and David Kantaros explore the rapidly evolving landscape of transatlantic AI regulations, focusing on the differing approaches between the European Union (EU) and the United States (U.S.).
Takeaways: [The EU's AI Act imposes strict legal requirements, while the U.S. focuses on voluntary compliance and agency collaboration., There is growing international cooperation on AI regulations, particularly in antitrust enforcement., Companies must proactively assess AI risks, develop compliance strategies, and stay informed about evolving regulations to avoid penalties and reputational damage., Transparency, accountability, and ethical practices are crucial for compliance and building public trust.]
Summary: The regulatory landscape surrounding artificial intelligence (AI) is evolving at a rapid pace, with significant developments in both the European Union (EU) and the United States (U.S.). Natasha Allen and David W. Kantaros of Foley & Lardner LLP discuss the implications of these changes for businesses operating internationally.

EU AI Act vs. U.S. Executive Order on AI:
The EU AI Act is a comprehensive and binding framework that categorizes AI systems based on their risk levels, imposing stringent regulations, particularly on high-risk applications. It includes severe penalties for non-compliance and focuses on protecting fundamental rights. Conversely, the U.S. approach, embodied in the Biden Administration's Executive Order on AI, promotes ethical and responsible AI use but relies on voluntary compliance and collaboration across federal agencies, without imposing specific penalties.

International Collaboration:
There is increasing collaboration between antitrust authorities in the U.S., EU, and the UK to monitor AI’s impact on competition. This joint effort underscores the global nature of AI regulation and the need for businesses to stay informed about varying regulatory environments.

Challenges for Global Businesses:
The article emphasizes the challenges that companies face in keeping up with these evolving regulations. Businesses must conduct thorough risk assessments, develop compliance strategies that align with the most stringent regulations, and stay engaged with ongoing regulatory developments.

Recommendations for Businesses:
To navigate these challenges, the authors recommend conducting proactive risk assessments, developing comprehensive compliance strategies, engaging in legal monitoring, and prioritizing transparency and accountability in AI development. Additionally, businesses should invest in ethical AI practices and robust data governance to align with both EU and U.S. regulatory standards.
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