Navigating US, European AI Compliance Seen as Challenge for Asian Companies
Asian AI developers looking to do business in the U.S., EU or U.K. face several key compliance challenges, Finnegan lawyers said Wednesday at the law firm's webinar.
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The U.S. lacks a comprehensive AI law, so some states are regulating AI in the absence of federal rules, privacy attorney Lynn Parker Dupree noted.
The release of the White House AI Action Plan (see Ref:2507230058]), however, signaled to states that their AI regulations wouldn't be seen favorably, Parker Dupree said. This could position the U.S. market in direct opposition to the EU's and put state regulations in contention with federal rules, she said, urging Asian AI developers to wait for additional guidance.
There are also challenges in the EU and U.K., said privacy lawyer Nessa Khandaker. For example, the EU and U.K. General Data Protection Regulations (GDPR) require data use to be minimized and filtering to be used to remove excess data. That will be difficult for developers of general-purpose AI, which uses massive amounts of data, she said.
For Asian companies, a key compliance condition will be to create data governance systems that align with GDPR principles and privacy by design, as well as prepare for upcoming obligations related to risk assessment of AI systems, Khandaker said.
Although AI is driven primarily by state law in the U.S., Asian businesses should use an approach based on privacy principles, said Parker Dupree. State laws haven't been repealed, so companies should continue to allow people to opt out of data collection and align their data governance processes with state requirements, she added.