Day: February 25, 2025

AI Compliance Essentials: Understanding New Regulations

Artificial intelligence (AI) is reshaping modern society, enhancing efficiency and productivity while also presenting benefits and risks, including potential biases and privacy intrusions. Authorities worldwide are developing regulations, such as the EU AI Act, to address these concerns and ensure compliance with ethical standards in AI deployment.

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California’s AI Regulation Faces Veto: Implications and Insights

The California legislature’s SB 1047, aimed at regulating artificial intelligence systems to ensure public safety, was recently vetoed by Governor Gavin Newsom. The governor expressed concerns that the bill could hinder innovation in California’s AI industry and emphasized the need for regulations based on empirical evidence rather than conjecture.

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EU AI Act: A Barrier to Innovation

The EU AI Act establishes a comprehensive regulatory framework for artificial intelligence that may hinder innovation in the sector by imposing strict regulations and compliance costs on AI companies. Critics argue that these burdensome regulations could drive AI development out of the EU and widen the technological gap with the US and China.

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CJEU’s Inquiry into AI Act and Automated Decision-Making Challenges

On November 25, 2024, Bulgaria’s Sofia District Court requested a preliminary ruling from the CJEU regarding automated decision-making under the AI Act, citing concerns over transparency and fairness in a telecoms company’s fee calculation method. The court seeks clarification on 17 legal questions pertaining to consumer rights and the interpretation of Article 86(1) of the AI Act.

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