Why I'm Hosting a Workshop on the Regulatory Challenges of AI

One recurring theme in my conversations with AI businesses is the growing uncertainty about how the AI Act and other regulations will affect companies in the UK.

At first sight, and after the UK left the European Union, the assumption is that a law made in Europe will have no effect locally.

But the reality is much more nuanced.

The “Brussels Effect”

One key factor to consider is the global influence of regulations like the AI Act. 

We’ve seen this before with the GDPR which reshaped privacy laws worldwide.

The European Union is a major political and economic force, and the AI Act developed over a period of more than five years by legislators, is not something that other countries are willing to overlook or dismiss.

In fact, its risk-based approach has become the benchmark for global AI regulations.

Setting the Gold Standard for AI Regulations

Admittedly this is a controversial statement and many people will disagree.

For many the AI Act is a comprehensive and robust piece of legislation. For its critics, the act is too prescriptive and will negatively affect innovation.

But businesses outside of Europe will likely aim to comply with the european standard, as demonstrating adherence to strict AI practices could become a competitive advantage.

What About the UK?

If you’re a UK business, you might assume the AI Act doesn’t apply to you.

But it’s not that simple.

The Act has an extraterritorial effect, meaning it can impose requirements on businesses even if they’re located outside the European market.

Take, for example, Article 2 which states:

"Providers placing on the market or putting into service AI systems, or placing on the market general-purpose AI models in the Union, irrespective of whether those providers are established or located within the Union or in a third country."

Additionally, it highlights that "providers and deployers of AI systems that have their place of establishment or are located in a third country, where the output produced by the AI system is used in the Union" are also subject to its rules.

A Missed Opportunity

Unfortunately, the environmental impact of AI systems has just a few mentions in the ACT.

Despite the energy intensive nature of these power-hungry technologies, their detrimental effects are often seen as an inevitable consequence of the race to develop cutting-edge systems.

The Act does touch on this issue in Article 40 (2), which mentions “reporting and documentation processes to improve AI systems’ resource performance, such as reducing the high-risk AI system’s consumption of energy and other resources during its lifecycle, and on the energy-efficient development of general-purpose AI models.”

Similarly, Article 95 references codes of conduct around “assessing and minimising the impact of AI systems on environmental sustainability, including energy-efficient programming and techniques for the efficient design, training, and use of AI.”

But these mentions feel like afterthoughts in a conversation that demands more attention.

The World Is Watching

Tech companies are facing increased scrutiny from the public and civil society, who demand greater transparency, accountability and responsible practices.

For businesses, complying with strict standards isn’t just about avoiding fines, it's about protecting users' rights and fostering a sense of trust that could boost the adoption of AI.

Understanding the AI Act and its intersection with other laws will help businesses anticipate changes, mitigate risks, and follow responsible practices that respect fundamental rights.

Waiting until regulations are enforced can be costly, both financially and reputationally.

This short blog is the first in a series of weekly articles leading up to the workshop on Responsible AI on Thursday 14th of November at the Engine Shed in Bristol.

In the next blog, I’ll explore the risk classification of AI systems and the main articles of the AI Act.

If you want to understand more about how to prepare your businesses for these challenges.

Don't miss the Responsible AI in-person workshop.

Limited spaces available