Is your GenAI under regulations?

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Guardians,

If you’re a founder or executive using generative AI in your technology stack, you're likely wondering how the upcoming EU AI Act will affect your operations.

The regulations are intentionally vague about it too. But not vague enough that we cannot make some guesses as to where it might be headed.

In this read:

1. Generative AI gets special treatment in the EU AI Act

2. The risk-based approach: It's not as simple as you think

3. Grey areas that might keep you up at night

4. What you need to do right now to stay ahead

Buckle up.

Generative AI: A Special Case in the EU AI Act

The EU AI Act recognizes generative AI as a type of "foundation model" - AI systems trained on large, diverse datasets for general output. This classification brings specific obligations, but also some ambiguities.

Key Obligations for Generative AI Providers

If you're providing generative AI systems, you'll need to:

1. Implement safeguards to prevent illegal content generation🛡️

2. Disclose copyrighted training data usage 📚

3. Ensure transparency about AI-generated or manipulated content 🔍

The Risk-Based Approach: It's Complicated

Here's where things get tricky. The Act doesn't automatically classify all generative AI as high-risk. Instead, each use case must be assessed individually. This means:

• 🚫 Some generative AI applications could be classified as "unacceptable risk" (e.g., real-time biometric identification in public spaces)

• ⚠️ Others might be "high-risk" (e.g., AI-powered resume scanners for job applications)

• 📝 Many will fall under "limited risk" (e.g., AI chatbots, with transparency requirements)

Grey Areas and Uncertainties

It's important to note that the Act's risk model may not fully address the unique challenges of generative AI:

1. 🌐 The risks of generative AI (like misinformation spread) are often diffuse and societal, rather than tied to specific use cases.

2. 🤔 The ethical justification for high-risk classification doesn't always apply neatly to generative AI's broader societal impacts.

These ambiguities may lead to challenges in implementation and compliance.

What This Means for Your Business

While the full impact remains to be seen, here are steps you can take now:

1. 🔍 Assess your generative AI applications for potential risks

2. ✅ Implement the specific obligations for generative AI providers

3. 📰 Stay informed about evolving interpretations and guidelines

4. 🧪 Consider participating in regulatory sandboxes to test compliance

🙂 Hint:If you’re subscribed to this newsletter, we got you covered.

The Bottom Line

The EU AI Act's approach to generative AI is nuanced and still evolving. While it doesn't blanket-classify all generative AI as high-risk, you'll need to carefully evaluate your specific use cases.

For many of you, the primary focus will likely be on transparency and safeguards against illegal content generation. However, if your generative AI is used in high-stakes decision-making or sensitive areas, be prepared for stricter compliance requirements.

You’ll have to balance innovation and compliance … with having a life.

Remember, this is a developing area of regulation. Stay vigilant, seek legal advice when needed, and be ready to adapt as more clarity emerges.

Have questions or concerns about your specific generative AI application? Don't hesitate to reach out!

💡Pro Tip:Have questions or concerns about your specific generative AI application? I can help. Just book a call.

That's all for this edition, Guardians! Keep pushing the boundaries of what's possible with AI, but do it responsibly. Until next time, stay curious and keep innovating!

P.S. If you're loving these insights, don't forget to share with your fellow AI enthusiasts. Let's grow this community together!