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On December 8, 2023, the EU finally agreed on the world’s first comprehensive legal framework on AI: the AI Act. EU lawmakers reached a political agreement on a series of controversial issues after record-long negotiations. They are expected to formally adopt the agreed text within the next couple of months. If adopted, the AI Act will ban certain AI systems, regulate general purpose AI (GPAI), impose heavy obligations on high-risk AI systems, subject to high fines, and support innovation through regulatory “sandboxes.” The AI Act will have an extraterritorial reach. Being the first law of its kind globally, the AI Act has the potential to establish a benchmark for AI regulation in other regions, just as the EU General Data Protection Regulation (GDPR) has accomplished.Continue Reading EU Lawmakers Reach Political Agreement on the AI Act

Significant New CCPA Compliance Requirements Likely on the Way

On August 29, 2023, the California Privacy Protection Agency (CPPA) posted discussion drafts of its forthcoming regulations on cybersecurity audits and risk assessments as part of the materials for its September 8, 2023, public board meeting. These draft regulations are expected to eventually become part of the CPPA’s second rulemaking package under the California Consumer Privacy Act (CCPA) since the CCPA’s amendment by the California Privacy Rights Act. The CPPA has not yet started its formal rulemaking process for cybersecurity audits and risk assessments, and it has made clear that these draft regulations are meant to facilitate CPPA Board discussion and public participation. Nevertheless, the obligations set forth in the draft rules are extensive and provide an initial window into the onerous new compliance requirements. Notable requirements put forth for discussion under the draft regulations include:Continue Reading CPPA Posts Draft Rules on Cybersecurity Audits and Risk Assessments

In Europe, recent advances in artificial intelligence (AI) have given rise to intense debate over how this technology should be regulated. Companies that have developed AI tools, or who are considering implementing AI, should assess the implications of recent legislative developments and regulatory action. This alert discusses the most recent legislative and regulatory developments in Europe and identifies key steps companies should take in light of these developments.Continue Reading Europe Prepares for a New Era in AI Regulation

Generative AI (GenAI) has been at the top of the headlines lately, transforming fields as varied as journalism, marketing, and gaming, boosting productivity and profitability, and performing functions previously limited to humans. Recent projections suggest that the global GenAI market will increase to over $100 billion annually by 2030. A previous Wilson Sonsini alert on GenAI covered a wide range of issues, such as breach of contract, confidentiality, copyright, ethics, European Union laws and regulations, licensing, securities laws, trade secrets, and reputational considerations. Another previous alert addressed legal requirements for mitigating bias in AI systems more generally. This alert drills down on U.S. privacy and consumer protection considerations associated specifically with GenAI.Continue Reading Generative AI: Privacy and Consumer Protection Considerations