News and Analysis of Artificial Intelligence Technology Legal Issues

EU’s New Plan for Regulating Artificial Intelligence: What US Companies Should Know

On February 19, 2020, the European Union Commission issued a plan for regulating high-risk artificial intelligence (AI) technologies developed or deployed in the EU. Calling it a “White Paper on Artificial Intelligence: a European Approach to Excellence and Trust,” the plan was published along with a companion “European Strategy for Data” and follows an earlier “AI Strategy” (2018) and AI-specific ethical guidelines (April 2019). In addition to presenting a framework for regulating “AI applications” in the EU, the Commission’s plan focuses on creating and organizing an ecosystem, encouraging cooperation among member states and institutions, creating infrastructure changes, and providing for…

Order from chaos

Artificial Intelligence, Risk Disclosures, and a New SEC Materiality Test

When Microsoft shared in 2018 that certain “deficiencies” surrounding its artificial intelligence practices could “subject[] us to competitive harm, legal liability, and brand or reputational harm,” it set the stage for other companies to self-report perceived risks associated with developing, using and producing AI technologies. Disclosing risks–a Securities and Exchange Commission (SEC) requirement imposed on public companies since 2005–raises a number of important considerations for both public as well as private companies, including transparency, accuracy, and the degree of speculation that may be acceptable when discussing AI impacts.  Although companies in industry segments other than AI face similar concerns, AI…