Business Insight

Global AI Regulation Guide

28 November 2024

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    Outpacing the AI regulatory revolution

    The world is undergoing a technological transformation that is set to impact all human activities. Its scale, scope, complexity and rapid pace has no historical precedent – and it has artificial intelligence at its heart.

    Artificial intelligence, or AI, refers to the development of intelligent technology that can perform tasks which usually require human intelligence, with such technology having a certain degree of autonomy. AI has become increasingly important owing to its vast range of applications, with the transformational powers of AI being widely acknowledged as having the power to reshape industries worldwide.

    However, this activity is taking place against a global regulatory landscape which is, with some exceptions, still at an early stage of evolution. Risks associated with the use of AI range from societal (job losses; socioeconomic inequality) to catastrophic events (chemical warfare, engineered pandemics). As a result, governments across the world are grappling with how best to regulate this technology in a way which fosters innovation and takes advantage of the potential benefits, while also providing appropriate safeguards.

    Regulation of AI is a global concern and although some consensus has been reached on the necessary high-level principles, different jurisdictions are taking different approaches. With this in mind, we can be sure that regulatory scrutiny of AI will only continue to intensify in the coming months and years. Consequently, while tracking, understanding and ensuring regulatory compliance for this complex and evolving technology is a challenging task – it is one which cannot be ignored.

    This briefing will guide you through current legislative frameworks and signpost the direction that we anticipate future governance will take in the following key jurisdictions:

    UK

    United Kingdom

    Europe

    European Union

    Australia

    Australia

    UAE

    United Arab Emirates

    Asia

    Asia

    USA

    United States of America

    Getting ahead of risk early

    Governments and regulators continue to wrestle with the question of how to balance regulation and innovation. Meanwhile, the pace of technological change in the field of AI shows no sign of slowing. Regulatory guidelines put in place now need to be sufficiently flexible to accommodate ongoing innovation in the future.

    Businesses have the hard task of trying to operate in this complex yet evolving regulatory landscape. In many organisations, the future will see AI not only embedded into day-to-day operations, but also embedded into their critical services. AI has the potential to introduce significant systemic risks into an organisation. This, combined with the challenges of trying to decipher the complex web of global AI regulation, standards and frameworks, highlights the need to involve legal, risk, compliance and data teams as early as possible so that AI can be developed and deployed safely, securely and in a legally compliant way. The winners will be those that can protect and leverage the value of their AI investments while remaining compliant and managing the associated risks.

    What you need to do

    • Document your compliance by creating registers of all AI assets; updating all relevant risk and control frameworks to cater for AI-related risks; and actively managing your obligations by ensuring that a comprehensive knowledge of applicable regulations is translated into practical, verifiable compliance controls.
    • Engage with regulators especially where regulators in specific jurisdictions are looking to industry to be proactive in solving problems. In some cases, recent regulatory interventions have been disruptive, with unwanted impact on existing business practices and technology roadmaps, meaning that businesses may want to take a strategic approach and engage with regulators to influence their thinking, either through industry associations or directly.
    • Set up horizon scanning processes to ensure readiness to deal with legislative and regulatory change and that they can map their existing policies against upcoming developments.

    How Ashurst can help

    Our global consulting, legal and Ashurst Advance professionals work side by side to deliver a seamless service, bringing together the technical expertise and critical thinking required to operationalise laws and regulations. We help clients solve complex problems relating to the use and deployment of AI and align their' risk practices to meet regulator expectations and fitness for the future.

    Ashurst aims to outpace change and is the only firm to offer clients a full suite of legal, risk advisory and data solutions to help clients meet the challenges of AI compliance to get on the front foot.

    Key Contacts