As a company that is focused on Ethical, Trustworthy and Fair AI, we felt it imperative to share recent announcements from both the European Union (EU) and the Federal Trade Commission (FTC) surrounding new AI laws and guidance which will impact all AI adoption globally.
These announcements have been in the offing for the last 2-3 years, however now there are clear consequences, requirements and lines of accountability for all.
Whilst proposed by the EU, the laws apply whether the technology originates in the EU or not. This means that, if applied, this proposed legislation would impact AI deployments globally. Importantly, breaking these rules could lead to fines up of to 6% of global turnover.
- prove their accuracy and fairness
- keep records of all their activity
- have “appropriate human oversight”
Federal Trade Commission
The FTC details their guidance here, with the key Acts that apply to AI being:
- Section 5 of the FTC Act. The FTC Act prohibits unfair or deceptive practices. That would include the sale or use of – for example – racially biased algorithms.
- Fair Credit Reporting Act. The FCRA comes into play in certain circumstances where an algorithm is used to deny people employment, housing, credit, insurance, or other benefits.
- Equal Credit Opportunity Act. The ECOA makes it illegal for a company to use a biased algorithm that results in credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because a person receives public assistance.
It’s fair to say that most organisations are not ready, have not prepared and now have a layer of scrutiny that will affect more stakeholders in the organization (think legal, compliance, governance, etc).
Chatterbox Labs has spent years pioneering this marketplace with our patented AI Model Insights (AIMI) platform.
We would be delighted to demonstrate how AIMI will seamlessly integrate with your existing AI operations without disturbing any current or future AI initiatives.
Within a matter of hours you can determine your level of exposure to these new AI laws and guidance.