Korea’s AI Basic Act: Pioneering Responsible Innovation

The Importance of the AI Basic Act

The “Basic Act on Artificial Intelligence (AI) Development and Trust Building” recently passed the National Assembly with overwhelming support, marking a significant legislative achievement for Korea. This act positions Korea as the second country globally to enact AI-specific legislation, following the European Union.

Significance of the Legislation

Historically, the National Assembly has been perceived as a venue of partisan conflict; however, this act demonstrates a remarkable bipartisan effort to create a forward-looking framework for AI development. The act is set to take effect one year after its proclamation, with detailed provisions to be established through enforcement ordinances.

Balancing Regulation and Promotion

Since the emergence of AI technologies like ChatGPT, there has been a rapid transformation in society. At major technology expos, such as CES in the United States, AI has become a central topic of discussion. Unlike the laissez-faire approaches adopted by the United States and China, which lack specific AI legislation, Korea’s AI Basic Act aims to strike a balance between regulation and promotion. This dual approach is designed to facilitate responsible AI advancement while preventing societal harm.

Key Provisions of the AI Basic Act

The act outlines several key pillars essential for the development and regulation of the AI industry:

  • National AI Committee: The act establishes this committee under the Office of the President, chaired by the president. The Minister of Science and ICT is tasked with developing a triennial “AI Master Plan” that outlines relevant policies, workforce development, and initiatives.
  • Definition of Legal Terms: The act clarifies terms such as “high-impact AI” and “generative AI.” High-impact AI refers to systems that significantly impact human life and essential services, while generative AI pertains to systems that create outputs like text and images based on input data.
  • Transparency Mandates: Businesses must inform consumers when products involve high-impact or generative AI and conduct safety evaluations for systems that exceed a specified computational threshold.

Prioritizing Job Creation Over Excessive Regulation

In contrast to the EU’s regulatory-heavy approach, Korea’s AI Basic Act emphasizes a flexible regulatory framework. While the EU categorizes AI into various levels of risk and imposes strict controls, Korea focuses on impact rather than risk, allowing for a more adaptable regulatory environment.

However, the act does exempt AI used solely for national defense or security purposes, which could restrict foundational research and innovation. The successful implementation of the AI Basic Act will depend on the specifics determined through enforcement ordinances, particularly regarding the definition and regulation of high-impact AI.

The Role of the Task Force

To facilitate this process, the government will establish a task force comprising experts from different sectors to focus on defining and regulating high-impact AI in accordance with the act.

A Caution Against Overregulation

One critical caution is to avoid adopting a defensive regulatory stance similar to the EU’s. Overregulation can stifle industry growth, hinder job creation, and adversely affect the public. Therefore, it is essential to strike a balance between mitigating risks and fostering job opportunities driven by AI.

Conclusion

Given the interconnected nature of the global market, Korea must be aware of the regulatory environments of competing nations. Striking a careful balance in regulations will support domestic industries while ensuring global competitiveness. It is imperative for policymakers to adopt a “pro-AI” and “pro-jobs” perspective in preparing enforcement ordinances, aiming to harness AI’s potential to enhance economic opportunities while minimizing associated risks.

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