by Andria PapageorgiouAI Act Set to Come into Force on 1 August 2024
The countdown to compliance with the Artificial Intelligence Act (“AI Act”) has started. Signed into law on June 13, 2024, the AI Act was set for publication in the EU Official Journal on July 12, 2024, and will enter into force on August 1, 2024.
Background
The AI Act establishes a legal framework aimed at achieving human-centric AI, protecting health, safety, and fundamental rights from the harmful effects of AI, while promoting innovation.
Scope of the AI Act
The AI Act applies to all stakeholders in the AI value chain, including AI providers (such as those of general-purpose AI, or “GPAI”), users, importers, distributors, manufacturers, and authorized representatives. Exemptions exist for AI systems used in scientific research, military, defense, or international cooperation, provided fundamental rights safeguards are in place.
Extra-Territorial Scope
The AI Act has extra-territorial reach, impacting organizations inside and outside the EU. It applies to entities placing AI on the EU market, using AI outputs within the EU, or providers of AI systems and general AI models outside the EU, who must appoint an EU-based representative.
Risk Categories
The AI Act adopts a risk-based approach, with regulations varying based on the severity and likelihood of harm:
- Prohibited: AI systems for social scoring, cognitive behavioral manipulation, biometric categorization.
- High: AI in employment, credit decisions, health/life insurance risk assessment.
- GPAI: Large language models like ChatGPT.
- Limited: Chatbots.
- Minimal: Spam filters, video games.
High Risk Providers
High-risk AI system providers must adhere to various obligations:
- Risk management systems
- Data governance
- Technical documentation
- Record-keeping
- Transparency
- Human oversight
- Accuracy, robustness, and cybersecurity
- Quality management systems
- Documentation and log generation
- Cooperation with authorities
- Displaying the CE Mark
- Registering with the EU database
GPAI Providers
GPAI providers must prepare technical documentation, copyright policies, and publish training data. They may adhere to voluntary codes of practice for compliance. GPAI systems posing systemic risks must undergo model evaluation, ongoing assessment, risk mitigation, and incident reporting.
User Obligations
AI users have fewer obligations but must ensure staff have AI literacy. Users of high-risk AI must implement technical and organizational measures, human oversight, monitoring, and data protection impact assessments. Transparency rules apply to AI systems creating deep fakes or involving emotion recognition.
Enforcement
The EU AI Office will regulate the AI Act’s implementation, supported by the AI Board and national supervisory authorities. National authorities will oversee enforcement, appointing a public authority to supervise fundamental rights.
Fines
The AI Act imposes significant fines:
- Up to €35 million or 7% of annual global turnover for breaches of prohibited AI provisions.
- Up to €15 million or 3% of annual global turnover for other breaches.
- SME fines will consider economic viability, applying the lower of the percentages or amounts mentioned.
SME Support
Special provisions help SMEs boost innovation:
- Priority access to AI regulatory sandboxes free of charge.
- Tailored training on the AI Act.
- Information and templates for documentation.
- Simplified technical documentation for high-risk AI system providers.
Timeline
Key dates for compliance:
- November 1, 2024: Identify and notify the Commission of the national public authority for fundamental rights.
- February 1, 2025: Scope, definitions, and prohibited AI systems provisions apply.
- August 1, 2025: GPAI, penalties, and EU governance provisions apply.
- August 1, 2027: Safety components and specific high-risk products (Annex I) provisions apply.
Future Developments
The AI Act is part of the EU’s broader legal approach, including the proposed AI Liability Directive and the Product Liability Directive, addressing procedural rules for civil claims and compensation for defective AI systems.
What to Do Now
Organizations should proactively:
- Identify AI used in the business and the applicable risk category.
- Implement an AI governance framework with policies, staff training, and vendor due diligence.
- Communicate compliance measures to stakeholders.
Developing an AI compliance program is time-consuming, and businesses must start early to meet the deadlines. Detailed guidance will take months to emerge, so a risk-based approach and benchmarking against industry practices are essential in the meantime.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouWhy Utilise a Family Office?
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouIntroducing Family Office Services
Safeguarding and effectively managing your family’s wealth, estate, assets, and other familial matters for future generations is a decision of utmost importance, requiring careful attention from a firm well-versed in the intricate complexities of the Family Office and sensitive to its multifaceted functions.
The essence of a Family Office extends beyond mere administrative and managerial tasks concerning familial wealth. It encompasses a suite of integrated services and functions, tailored to meet the unique lifestyle and requirements of each individual client, thus forming a customized service package.
Whether the aim is to preserve an existing estate or facilitate its growth, Andria Papageorgiou Law Firm can establish the appropriate Family Office, leveraging a wealth of expertise from legal, tax, and accounting firms, investment advisors, and real estate professionals, all consolidated into a comprehensive portfolio.
Family Office services encompass a wide array of offerings tailored to individual client needs, including the management of wealth, lifestyle, trusts, charitable foundations, valuable collections, succession plans, as well as the secure storage of essential family documents and records.
Furthermore, the Family Office addresses various legal considerations relevant to clients, spanning corporate governance, tax and estate planning, compliance, real estate transactions, employment matters, and employee benefits, among other areas.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouParliament Passes Landmark Artificial Intelligence Act: Ensuring Safety, Compliance, and Innovation
In a historic move, Parliament has greenlit the Artificial Intelligence Act, marking a significant step towards ensuring safety, compliance with fundamental rights, and fostering innovation in the AI landscape.
This legislation, which underwent negotiations with member states in December 2023, received overwhelming support from MEPs, with 523 votes in favor, 46 against, and 49 abstentions. Its primary objective is to safeguard fundamental rights, democracy, the rule of law, and environmental sustainability from the potential risks posed by high-risk AI technologies, all the while propelling Europe forward as a global leader in the field.
Among its provisions, the Act prohibits certain AI applications deemed detrimental to citizens’ rights, such as biometric categorization systems based on sensitive characteristics and the indiscriminate collection of facial images from sources like the internet or CCTV footage for facial recognition databases. Additionally, practices like emotion recognition in workplaces and schools, social scoring, predictive policing solely based on profiling, and AI manipulation of human behavior or exploitation of vulnerabilities are strictly forbidden.
However, the legislation acknowledges exemptions for law enforcement agencies, allowing the use of biometric identification systems under tightly defined circumstances, such as targeted search operations for missing persons or counterterrorism measures, with strict safeguards in place.
Furthermore, the Act imposes clear obligations on high-risk AI systems, mandating risk assessment and mitigation measures, transparent operations, accurate decision-making, and human oversight. Citizens are granted the right to lodge complaints regarding AI systems affecting their rights and to receive explanations for decisions made by such systems.
Transparency is a cornerstone of the Act, requiring general-purpose AI systems and their underlying models to adhere to stringent transparency standards, including compliance with EU copyright laws and the disclosure of comprehensive summaries of training data. Additionally, measures are introduced to combat the proliferation of manipulated media content, such as deepfakes, by mandating clear labeling.
To support innovation and empower small and medium-sized enterprises (SMEs), regulatory sandboxes and real-world testing environments will be established at the national level, providing opportunities for developing and training innovative AI solutions before market entry.
In reflecting on this milestone, co-rapporteurs Brando Benifei and Dragos Tudorache emphasized the Act’s significance in shaping a future where AI aligns with European values, protects citizens’ rights, and fosters responsible innovation.
Looking ahead, the Act is slated for final adoption pending legal review and endorsement by the Council, with provisions set to come into effect progressively over the next few years. This landmark legislation not only responds to citizens’ demands for a safer and more trustworthy AI environment but also sets a precedent for global governance in the rapidly evolving digital landscape.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouAI’s Impact on the Legal Profession: Evaluating Risks and Assessing the Future of Legal Practice
A. Introduction:
Artificial Intelligence (AI) has revolutionized various industries, and the legal profession is no exception. AI technologies are increasingly being adopted in legal practices to streamline processes, enhance efficiency, and provide new insights. However, along with the benefits, AI also brings certain risks. In this article, we will explore the impact of AI on the legal profession, assess the associated risks, and examine the future of AI in the legal practice profession.
B. AI’s Impact on the Legal Profession:
- Automation of Routine Tasks: AI-powered tools and algorithms can automate repetitive tasks, such as document review, due diligence, and contract analysis. This automation frees up valuable time for legal professionals to focus on more complex and strategic work, improving overall productivity and efficiency.
- Enhanced Legal Research: AI-powered algorithms can quickly analyze vast amounts of legal information, including case law, statutes, and legal precedents. This enables lawyers to conduct comprehensive legal research more efficiently, saving time and providing valuable insights for case preparation and strategy.
- Contract Analysis and Due Diligence: AI-based contract analysis tools can review and extract key information from contracts, reducing manual effort and human error. Similarly, AI can assist in due diligence processes by quickly analyzing large volumes of data, identifying potential risks, and highlighting critical information.
- Predictive Analytics: AI algorithms can analyze historical data and patterns to provide predictive analytics for legal outcomes, such as case verdicts or settlement amounts. This can help lawyers and clients make informed decisions and assess the potential risks and rewards associated with legal actions.
C. Risks Associated with AI in the Legal Profession:
- Data Privacy and Security: The use of AI involves the collection and analysis of vast amounts of data, including sensitive client information. Safeguarding data privacy and ensuring robust cybersecurity measures are crucial to prevent unauthorized access, breaches, or misuse of confidential data.
- Bias and Fairness: AI algorithms learn from historical data, which may contain biases or reflect societal inequalities. If not carefully monitored and audited, AI systems can perpetuate biases in legal decision-making, potentially leading to unfair outcomes. It is crucial to ensure transparency, accountability, and regular audits of AI systems to mitigate these risks.
- Ethical Considerations: The use of AI raises ethical concerns, particularly when it comes to issues such as AI-generated legal advice, responsibility for errors in AI outputs, and the ethical implications of delegating decision-making to machines. Legal professionals must navigate these ethical considerations and ensure that AI systems align with professional ethical standards.
D. The Future of AI in the Legal Practice Profession:
- Augmented Intelligence: The future of AI in the legal profession lies in augmented intelligence, where AI technologies complement human expertise rather than replace it. Lawyers will leverage AI tools to enhance their capabilities, improve efficiency, and provide more value-added services to clients.
- Legal Innovation and Efficiency: AI has the potential to drive legal innovation by automating routine tasks, improving legal research capabilities, and providing data-driven insights. This can result in increased efficiency, cost savings, and the ability to deliver legal services more effectively.
- Enhanced Client Experience: AI-powered chatbots and virtual assistants can improve client interactions by providing instant responses, personalized recommendations, and self-service options. This can enhance the overall client experience and improve client satisfaction levels.
E. Conclusion:
AI technology has the potential to significantly impact the legal profession by automating tasks, improving research capabilities, and providing predictive analytics. While the benefits of AI in the legal practice are substantial, it is crucial to address the associated risks such as data privacy, bias, and ethical considerations. By navigating these risks and embracing AI as a tool for augmented intelligence, the future of the legal profession holds promise for increased efficiency, innovation, and enhanced client experiences.
Should you have any further questions, please do not hesitate to contact us at [email protected].
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.