Part IV of our series “Regulating AI: The Potential Impact of Global Regulation of Artificial Intelligence” will focus on recent developments in general availability of AI and how generative AI solutions are leading regulators, at a global level, to consider legal frameworks to protect both individuals affected by AI and digital sovereignty.

The program will feature a panel addressing the EU AI Act, on which a preliminary political agreement was reached last December and unanimously approved by the ambassadors of the 27 countries of the European Union on 2 February 2024, prior to its upcoming final votes.

Like the GDPR before it, the EU AI Act will be a trailblazing piece of legislation which will impact companies at global level.

Our panelists will discuss the consequences of the EU AI Act on companies contemplating the provision of AI solutions in the EU market or leveraging AI in the EU, with a special focus on non-EU companies.

Additional topics in our Regulating AI — The Potential Impact of Global Regulation of Artificial Intelligence series include:  

  • Part I – 13 September 2023 (EU / U.K.) – View Recording
  • Part II – 7 December 2023 (Asia-Pacific Region: China, Hong Kong, Singapore, Japan) – View Recording
  • Part III – 12 December 2023 (United States)

Register here.

The Information Commissioner’s Office (ICO) recently launched a consultation series on how data protection laws should apply to the development and use of generative AI models (“Gen AI”). In the coming months, the ICO will publish further views on how to interpret specific requirements of UK GDPR and Part 2 of the DPA 2018 in relation to Gen AI. This first part of the consultation focusses on whether it is lawful to train Gen AI on personal data scraped from the web. The consultation seeks feedback from stakeholders with an interest in Gen AI.

As outlined by the ICO, web scraping will involve the collection and processing of personal data, which may not have been placed online directly by the data subjects themselves. To comply with the UK GDPR, Gen AI developers would need to ensure there is a valid lawful basis for their processing under UK GDPR, as well as comply with the relevant information requirements pertaining to indirect personal data collection.

For the first part of the consultation series, the ICO published a policy position on the lawful basis for training Gen AI models on web-scraped data which can be found here. More specifically, this consultation focusses on the ‘legitimate interest’ lawful basis under art. 6(1)(f) UK GDPR and the ‘three-part’ test that a data controller must pass to meet the legitimate interest basis (a so-called Legitimate Interest Assessment). The ICO has considered various actions that Gen AI developers could take to meet this three-part legitimate interest test to guarantee that the collection of training data through web scraping, i.e. processing of data, is complaint with the principles of UK GDPR. The ICO would now like to hear from relevant stakeholders on their view of the proposed regulatory approach and the impact this would have on their organisation. A link to the survey can be found here.

The deadline to submit a response is 1 March 2024.

First publication: K&L Gates Cyber Law Watch blog with Sophie Verstraeten

Join our session as we explore the implications of the EU AI Act. In this webinar, we’ll:

  • Break down the four levels of AI risk under the AI Act
  • Discuss legal requirements for deployers and providers of AI systems
  • Provide a playbook for deployers and providers to accelerate EU AI Act compliance

Featured speakers

Yücel Hamzaoğlu​

Partner
HHK Legal

Melike Hamzaoğlu

Partner
HHK Legal

Claude-Étienne Armingaud​

Partner
KL Gates

Noshin Khan​

Ethics & Compliance, Associate Director
OneTrust​

Harry Chambers

Senior Privacy Analyst
OneTrust

Register here.

New ranking in Who’s Who Data 2024 as Recommended in the Data Privacy & Protection and Information Technology categories.

The UK’s Information Commissioner’s Office (the “ICO”) has recently sent warnings to the UK’s most visited websites to inform them that they may face enforcement action if they do not make changes to their cookie banner to ensure compliance with UK data protection law. For example, some websites warned by the ICO do not provide their user with a fair choice on tracking for personalised advertising. This position aligns with the EU’s stance, noting France (see prior Alert here).

The ICO’s actions are part of a larger commitment to ensure individuals’ privacy rights are upheld by companies active in the online advertising industry. Publishers receiving a warning only have 30 days to amend their websites in line with UK GDPR. As further incentive for publishers to get compliant, the ICO has also warned that it will publish the details of those websites that have not made the requested changes in January. Such publicity may be even less welcome than the potentially large fines associated with breach of the data protection framework.

The statement made by the ICO highlights once again the importance for companies to review how cookies are used on their websites and how their cookie banners, along with the cookie consent management solution, are displayed. To be compliant, websites must make it as easy as possible for users to reject all advertising cookies. Personalized advertising can be compliant as long as it is based on the user’s consent. In case users reject all advertising cookies, websites can only show general adverts that are not tailored to the users’ browsing history. Consequently, websites should display a cookie banner that makes it as easy for users to reject cookies, as it is for them to accept cookies.

The ICO’s guidance in relation to cookie banners can be found here, which may need to be further updated with the newly presented Data Protection and Digital Information Bill.

First publication: Cyber Law Watch Blog with Sophie Verstraeten

A bit of Jyn Erso to wrap up the week!

New episode of K&L Gates Gateway to Privacy is out, and this time with our first external guest — our dear friend Arya Tripathy joins us with Whitney McCollum and Camille Scarparo for a deep dive into India’s new data protection law, the Digital Personal Data Protection Bill, 2023.

What’s to know, what’s to expect? Listen and find out!

Post-Brexit EU businesses have needed to rethink how they approach showing compliance with a host of regulations, managing international data transfers and building trust with data subjects. Having to comply with the GDPR, prepare for other data protection bills, all while continuing to comply with the EU-GDPR as well as a host of global regulations means businesses might look to certification as a common system for adequacy as a one-stop shop, when addressing the overlaps and more crucially closing the gaps on their privacy compliance programs.

Featured speakers:

  • Noshin Khan, Senior Compliance Counsel, Ethics Center of Excellence, OneTrust 
  • Claude-Étienne Armingaud, Partner, K&L Gates

Register here.

This panel session will focus on the growing concern over the ethical use of Artificial Intelligence (AI) and its impact on privacy. The panelists will discuss the role of accountability in developing responsible AI practices and the potential risks of AI systems when not properly regulated. They will also explore the importance of transparency and the need for data privacy regulations in the development and deployment of AI technologies. The session will provide insights into best practices for AI governance and how organizations can ensure the ethical use of AI while still benefiting from its potential.

Co-Panelists:

#AI #ArtificialIntelligence #gdpr #ethics #dataprotection #regulation #insights23 #pecb #Privacy #Accountability

The UK Government has laid adequacy regulations before Parliament that, once in force from 12 October 2023, will permit use of the UK – US “Data Bridge” as a safeguard for personal data transfers from the UK to the US under Article 44 UK GDPR.

The UK – US “Data Bridge,” AKA the UK Extension to the EU – US Data Privacy Framework (Framework), allows UK organisations to transfer personal data to organisations located in the United States that have self-certified their compliance with certain data protection principles and appear on the Data Privacy Framework List. This scheme, administered by the US Department of Commerce, provides a redress mechanism for data subjects in the European Union to enforce their rights under the EU General Data Protection Regulation, in relation to a participating US organisation’s compliance with the Framework, and to US national security agencies’ access to personal data. This new redress mechanism attempts to prevent a challenge to the Framework similar to the Schrems II case, which invalidated the Framework’s predecessor EU – US Privacy Shield. Despite this, the Framework has already been the subject of a short-lived case at the Court of Justice of the EU, and there may be more legal challenges.

Alongside the adequacy regulations, the UK government published an analysis of the US laws relating to US national security agencies’ access to the personal data of European data subjects. This analysis effectively completes the international data transfer risk assessment (TRA), which UK organisations have been required to carry out before transferring personal data to the US. It is likely that UK organisations relying on the other Article 44 UK GDPR safeguards, such as the International Data Transfer Agreement, may also rely on this analysis in place of completing a TRA.

First publication: K&L Gate Cyber Law Watch Blog in collaboration with Noirin McFadden

August may be perceived as the month where France shuts down for the summer. Yet, just before the summer ’23 holiday, the French Data Protection Authority (“CNIL”) published several call to action for the various players of the data ecosystems in general and in artificial intelligence (AI) in particular, following its 16 May 2023 announcement of an AI action plan:

  • Opening and re-use of publicly accessible data – The CNIL published a draft guidance on the such data usage, and all stakeholders are invited to weight in until 15 October 2023 before its finalization. While non-binding, this guidance is expected to lead the way on how the EU’s Supervisory Authority will apprehend and enforce the General Data Protection Regulation (“GDPR”) when personal data is scraped from online sources and subsequently used for subsequent purposes. This notably focuses on Art. 14 GDPR and the indirect collection of personal data and specific prior information requirements. Artificial Intelligence is explicitly mentioned by the CNIL in the draft, as such data, which feeds large-language models, “undeniably contributes to the development of the digital economy and is at the core of artificial intelligence.” Stakeholders are invited to submit their observations online through the dedicated portal.
  • Artificial Intelligence Sandbox – Following in the footsteps of its connected cameras, EdTech & eHealth initiatives, the CNIL is launching an AI sandbox call for projects, where stakeholders involved in AI in connection with public services may apply to receive dedicated assistance by the regulator to co-construct AI systems complying with data protection and privacy rules.
  • Creation of databases for Artificial Intelligence uses – Open to the broadest possible array of stakeholders (including individuals), this call for contributions notably addresses the specific issue relating to the use of publicly accessible data and aims at informing the CNIL of the various positions at play and how to balance GDPR’s requirements (information, legitimate interests, exercise of rights) with data subjects’ expectations. Stakeholders are invited to submit their observations online through the dedicated form (in French – our free translation in English is available below)- no deadline for submission has been set.
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