"What happens when, instead of just looking at the output of corporate decision-making, they start also trying to control the inputs? That is essentially what the European Commission is proposing to do in groundbreaking rules on artificial intelligence outlined this week. This first attempt to create a legal framework covering the development and use of AI delves into murky areas previously beyond the scope of external oversight."
Richard Waters FT 23rd April 2021
GDPR was a long time coming and impacts every organisation.
Comparisons have been drawn between the new AI rules and the General Data Protection Regulation, Europe’s far-reaching data protection regime. As with the privacy rules, it forces companies outside the EU to follow European procedures if the output of their systems affect European citizens. Europe may be well behind the US and China in the AI race, but it is still keeping its nose ahead in tech regulation. This is guaranteed to increase tension with American companies.
AI is a key component of insurance products, platforms and applications.
Brussels will take years to develop and implement this AI regulation but has set a clear course to navigate so insurers, brokers and insurtechs should keep a sharp eye on progress.
The attempt to wrestle AI systems into some form of regulatory framework is understandable. Opaque and often mistrusted, algorithms are coming to play a part in shaping the way many important government and corporate decisions are made. But the implications are profound.