The regulatory landscape around AI generally is shifting and the latest proposal on the pending EU AI Act specifically addresses generative AI to reflect concerns round lack of transparency for the public. Providers of generative AI must:
- demonstrate through appropriate design, testing and analysis the identification, the reduction and mitigation of reasonably foreseeable risks to health, safety, fundamental rights, the environment and democracy
- process and incorporate only datasets that are subject to appropriate data governance measures for foundation models
- design and develop the foundation model in order to achieve throughout its lifecycle appropriate levels of performance, predictability, interpretability corrigibility, safety and cybersecurity
- document and make publicly available a sufficiently detailed summary of the use of
- training data protected under copyright law
Companies incorporating generative AI into B2C offerings will also need to consider the additional layer of consumer legislation. At a high level the concepts will be similar to those outlined above (e.g., transparency and explainability) but additional consumer considerations around influencing consumer transaction behaviour, avoiding misleading activities or pressure selling need to be carefully considered.