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30 April 2021

Pearl Cohen Zedek Latzer Baratz

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The European Commission is proposing new legislative rules aimedto promote excellence and trust in the field of ArtificialIntelligence (AI). The new proposal of EU regulation lays down: (a)harmonized rules for the use of artificial intelligence systems inthe EU; (b) prohibitions of certain particularly harmful AIpractices; (c) specific requirements for high-risk AI systems andobligations for operators of such systems; (d) harmonizedtransparency rules for AI systems intended to interact withindividuals, such as emotion recognition systems, biometriccategorization systems, and AI systems used to generate ormanipulate image, audio or video content; and (e) rules on marketmonitoring and surveillance.

The proposal's declared purpose is to lay down a balancedand proportionate regulatory approach between the minimalrequirements to address the risks and problems linked to AI,without unduly constraining or hindering technological developmentor otherwise disproportionately increasing the cost of placing AIsolutions on the market.

Meanwhile, in the United States, the Federal Trade Commissionhas offered business guidance on AI and algorithms, and howcompanies can manage the consumer protection risks of AI andalgorithms. The FTC emphasizes that the use of AI tools should betransparent, explainable, fair, and empirically sound whilefostering accountability. The FTC says that the use of AItechnology to make predictions, recommendations, or decisions hasgreat potential to improve welfare and productivity. However, italso presents risks, such as the potential for unfair ordiscriminatory outcomes or the perpetuation of existingsocioeconomic disparities.

In Israel, the Innovation Authority and the Ministry of Justicehave published a call for public comments and proposals onregulatory restraints and possible regulation in the field of AI,with an emphasis on experimenting and implementing AI systems, suchas decision support systems with or without the involvementof human judgment.

The call seeks feedback from the general public on questionssuch as the nature of desirable AI regulation consideringIsrael's leading position as an R&D hub in the AI field;global regulatory models aimed to advance the AI field; andregulatory gaps between Israel and other countries. Comments can besubmitted by email until May 13, 2021.

CLICK HEREto read the EuropeanCommission's proposed regulation.

CLICK HEREto read the recent FTC guidefor use of AI and algorithms.

CLICK HEREto read the Israeli AI call forpublic comments (in Hebrew).

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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