Artificial Intelligence (AI) is a broad term that generally refers to computer systems that can receive and process information to make decisions without human input. AI is widely considered an era-defining technology in the way electrical and computer technology came to define the 1800s and 1900s respectively. Just as regulation of computer security lagged behind the increasingly pervasive use of computers in the late 1980s, we are seeing today that regulation of AI has likewise lagged behind the expansion of the technology. 

U.S. federal, state, and international authorities are increasingly monitoring and regulating AI. Regulating AI is no simple task, with the technology finding growing applications in a myriad of areas such as autonomous vehicles, the military, law enforcement, art, music, creative writing, social media, and even corporate recruitment.

Regardless of your industry, AI is likely being used in various capacities, with the adoption of new AI applications increasing every day. Whether you are a business owner, executive, employee, or consumer, maintaining an awareness of AI development and regulation will be essential in the coming years.

In the United States, the National Institute of Standards and Technology (NIST), an agency within the U.S. Department of Commerce, is leading the way in conducting AI research, developing technical standards, and aiding in AI policy development. NIST is providing support to the National Artificial Intelligence Advisory Committee (NAIAC), which is “tasked with advising the President and the National AI Initiative Office on topics related to the National AI Initiative.” NAIAC is a new committee, having launched in April of 2022. NAIAC will play a pivotal role in how AI legislation is drafted and implemented, with Congress directing NAIAC to submit periodic reports of its findings and recommendations to both Congress and the President, with the first report being submitted in 2023. The NAIAC was created through the National Artificial Intelligence Initiative Act of 2020, which also established the National Artificial Intelligence Initiative and the National Artificial Intelligence Initiative Office. The National Artificial Intelligence Office is tasked with coordinating comprehensive U.S. led research, development, and implementation of AI technology in both the public and private sectors.

Numerous states in the U.S. have also introduced legislation to regulate AI in the public and private sectors. In 2022, we saw several dozen AI-related bills remain pending. Several states did pass measures to fund further research in support of future AI-related legislation. In particular, Illinois amended its existing “Artificial Intelligence Video Interview Act” in 2022, which creates substantive regulation regarding how AI is used to decide which candidates for employment will receive in-person interviews.

In the European Union, “The Artificial Intelligence Act” has been introduced and will likely see movement this year. The Artificial Intelligence Act proposes to rank AI systems and applications as “unacceptable risk,” which would be banned entirely, “high-risk,” which would be specifically regulated, and leaves AI applications outside of these classifications largely free from specific regulations and compliance requirements.

So what does all this mean? Companies seeking to use AI technology in their businesses domestically or abroad should closely track developments in AI legislation and regulation this year, as 2023 will likely see the adoption of the most AI legislation in history. As with all business development, it is better to plan ahead and build the needed privacy and security requirements into any products and services that use AI. In the coming months, we will write more on AI to keep you informed on this powerful technology and apprised of regulatory developments in this rapidly changing space.

Taft’s Privacy and Data Security attorneys can assist in answering any questions or advising on how to manage, train, and mitigate risks associated with privacy, data management, and cybersecurity, as well as what to do after a breach or other cyberattack occurs. Stay tuned to our Taft Privacy and Data Security Insights or download our app for more news and information.