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Our Digital, TMT and Sourcing team has published an article on the European Commission's recently proposed Regulation of artificial intelligence (AI). The proposed Regulation is far-reaching; it would:

  • ban AI systems that unequivocally harm individuals;
  • impose extensive requirements on "high risk" AI systems; and
  • impose transparency obligations for those AI systems creating limited (but more than minimal) risks.

If the proposal is passed, this pioneering legislation will have extra-territorial scope. Regulated financial services firms (among many others) will need to consider how this may impact on their current use AI systems where these are either used directly in the EU or whose outputs may impact natural persons in the EU.

The proposed Regulation will need to be agreed by the European Parliament and Council. The proposed Regulation may change during the negotiation process.

Read more here

 

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