Demystifying The AI Act: Ensuring Trust and Accountability in AI

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Having recently passed the Artificial Intelligence Act, the European Union is about to bring into force some of the world’s toughest AI regulations. But first, lets understand why do we need AI laws in the first place.

For that you must understand “Bias.” Bias in AI occurs when an AI system produces results that are systematically skewed towards or against particular groups due to the data it was trained on, the design of its algorithms, or the way it makes decisions.

For example, imagine an AI recruitment system trained on historical data from a company that has traditionally hired more men than women for technical roles. There is a Risk that this AI system might inadvertently learn to favour male candidates over female candidates based on criteria that are not directly related to job performance.

In this day and age, AI systems have a strong influence in our daily lives. Often, these AI systems work as a blackbox, So, it becomes difficult to assess these biases.  

“The AI Act ensures that we can trust what AI has to offer.”

The AI act makes sure that AI systems used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly. AI systems should be overseen by people, rather than by automation, to prevent harmful outcomes.

The work “traceable” and “transparent” are of great significance here, because we can only trust AI systems when we can analyse their decision-making process.

What is the AI Act?

Different AI systems pose different level of risks. The Act categorizes AI systems into 4 categories: Unacceptable risk, High risk, Limited risk, and Minimal risk. It establishes obligations for providers and users depending on the level of risk.

Unacceptable risk

Unacceptable risk AI systems are systems considered a threat to people and will be banned. They include:

·       Cognitive behavioural manipulation of people or specific vulnerable groups: For example, voice-activated toys that encourage dangerous behaviour in kids.

·       Social scoring: classifying people based on behaviour, socio-economic status or personal characteristics

·       Biometric identification and categorisation of people

·       Real-time and remote biometric identification systems, such as facial recognition

There are some exemptions, including preventing terrorism, locating missing people, scientific study etc.

High risk

AI systems that negatively affect safety or fundamental rights will be considered high risk and will be divided into two categories:

1) AI systems that are used in products falling under the EU’s product safety legislation. This includes toys, aviation, cars, medical devices and lifts.

2) AI systems falling into specific areas that will have to be registered in an EU database:

·       Management and operation of critical infrastructure

·       Education and vocational training

·       Employment, worker management and access to self-employment

·       Access to and enjoyment of essential private services and public services and benefits

·       Law enforcement

·       Migration, asylum and border control management

·       Assistance in legal interpretation and application of the law.

All high-risk AI systems will be assessed before being put on the market and also throughout their lifecycle. People will have the right to file complaints about AI systems to designated national authorities.

Transparency requirement for Low-risk AI systems

Generative AI, like ChatGPT, will not be classified as high-risk, but the model must be designed to prevent illegal content, and the content generated by these systems must be clearly labelled as AI-generated, so avoid deepfakes.  

Conclusion

Though “The Act” looks reasonable on paper, the enforcement would be the real-deal, and very tedious process. As far as the big-tech firms go, it will come down to a question of how much they are willing to divulge. If the regulators accept the objection that the algorithms and datasets are confidential business information, “The Act” can turn into a toothless fairy.

On the other hand, the startups building bespoke systems for niche markets will be hugely affected by this, and they generally do not have the legal firepower, like the big-tech boys, to argue in court.

In the end, The EU act is the first of its kind, but it’s widely expected that it will be followed by further regulation across the globe including in the USA and China. This means that for business leaders, wherever they are in the world, taking steps to ensure they’re prepared for the changes that are coming is essential.

As we navigate this new era of AI regulation, it's crucial for us all to be part of the conversation. How do you think the AI Act will impact the future of AI development and adoption in the EU and beyond? Are there aspects you believe need further refinement or clarity?

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