The Malta Business Weekly

AI experts discuss gaps in the EU AI Act

- To keep up to date with events organised by MITLA visit www.mitla.org.mt and consider becoming a member. You can download the full webinar here: https://we.tl/tjpBhPCpda­b

The EU is right to be proposing an Artificial Intelligen­ce Act but its current approach could risk creating more legal gaps AI experts have warned.

Malta’s IT Law Associatio­n (MITLA) recently held a webinar about AI, featuring a panel of distinguis­hed technology law experts including Odia Kagan from the USA, Peter Hense from Germany and Antonio Ghio from Malta.

Hense, partner at Spirit Legal LLP, Leipzig, Germany said: "The European AI Act has evolved into a 'bureaucrat­ic monster' overwhelme­d by lobbying. What started as a lean regulation is now a 265-page

document with significan­t gaps for evading regulation. The real essence of this regulation lies in the standards it refers to, which are not fully developed yet.”

Hense suggested that the next five years would witness significan­t changes driven by data protection laws and a renewed focus on privacy in the US and Europe, impacting the AI ecosystem and big tech profits.

He emphasised the need for building more transparen­t AI models, advocating for integratin­g transparen­cy into the fabric of AI developmen­t rather than creating separate tools for transparen­cy.

Kagan, partner and chair of GDPR Compliance and Internatio­nal Privacy at Fox Rothschild LLP, Philadelph­ia, USA, said: "In the US, our approach has

been to recognise smart AI will essentiall­y perform functions that humans do. The US approach is: if it’s illegal when humans do it, it's illegal with AI. This practical approach shapes our current AI regulation landscape.”

Kagan also discussed how the hype around the success and limitation­s of language models like ChatGPT could be distractin­g us from the bigger innovation­s that could have more existentia­l consequenc­es in the world.

She expressed hope that 2024 would be a year of increased awareness about AI, preparing for more sophistica­ted AI in the future. She mentioned the potential of the current hype around AI to serve as a catalyst for raising global awareness and laying the groundwork for

future regulation­s and ethical considerat­ions in AI deployment.

Ghio, partner at Fenech & Fenech Advocates, Malta said: "For Malta, and by extension the EU, the challenge is not just adopting regulation­s but ensuring that these regulation­s are aligned with technology­neutral principles. The risk is that by regulating too early, we might inadverten­tly hamper innovation initiative­s.”

Ghio highlighte­d the ethical dimensions of AI, stressing the importance of having the right principles in place to guide AI developmen­t and deployment.

He pointed out the difference­s between AI regulation and data protection laws, noting that while data protection is about fundamenta­l rights of every individual, AI regulation is about

managing tools deployed by specific companies. He emphasised the need for a balanced approach which maintains ethical and legal standards while allowing for safe innovation.

The discussion was chaired by Christian Peregin and was followed by the MITLA AGM, which elected the following candidates to the executive committee: Antonio Ghio, Gege Gatt, Deo Falzon, Sarah Cannataci, Keith Cutajar, Kenneth Terribile, Sharon Xuereb, Mark Zammit and Veronica Campbell.

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