The UK may have no specific guidance regarding AI regulation, but businesses can and should look to the EU AI Act to gain clarity, especially relating to the ethical considerations of AI innovation. D2LT’s Akber Datoo flags the importance of ethics policies when navigating the use of AI.
Ethical Confusion
Organisations globally are using generative AI to create innovative business models. The issue of ethics should never be far away from any AI debate, yet is far too often sidelined during UK business discussions. In part, this is due to the lack of clarity within the UK. The current principles-based approach to AI regulation, rather than a specific act, leaves businesses without any clear understanding or guidance.
The establishment of AI Ethics Policies, informed by ethical impact assessments, is essential in navigating challenges and making informed, appropriate decisions regarding AI use. For example, instead of outright blocking certain AI applications, ethical impact assessments can guide organisations in implementing nuanced, responsible use policies, especially for sensitive data. Ethical considerations should inform every step of AI application, from inception and development to deployment and monitoring.
Lack of Clarity
The UK government, somewhat unexpectedly, did not include any planned AI bill within the King’s speech last July, leaving businesses without the guidance and direction required to support ethical innovation. It did, however, outline how the government would “seek to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models”.
The current lack of legal clarity potentially constrains innovation because investors lack a clear framework to make confident decisions and have no indication as to how long the current unregulated approach may continue within the UK. Will regulation be introduced in the future and, if so, will the planned product or service be permitted? For any start up organisation, the lack of certainty surrounding AI regulation is affecting the investment cycle and risks constraining business development. However, the situation is very different in the EU, where the AI Act provides a highly detailed, very specific regulatory framework.
EU Regulation
The EU’s highly codified approach to AI regulation could provide UK businesses with a solid understanding and foundation for AI business decisions, especially surrounding ethics. It prohibits applications that make use of social scoring, facial recognition, dark-pattern AI and manipulation; while applications using AI within sensitive areas such as education, employment, justice, immigration and law are deemed high risk and require a conformity assessment. The Act’s definition of multiple levels of permissible risk – high, limited and minimal – can provide a helpful start point for any organisation embarking upon AI application development.
Guidance as to how and where a business may be caught by the EU AI regulation is invaluable, providing clarity as to ethical aspects of innovation and also helping a business to take the steps required to better comply with AI licensing and certification around documentation requirements. With these foundations in place, a business can both gain confidence in the longer term viability of its model and also demonstrate ethical rigour to potential investors.
That said, while regulation provides a useful risk framework for businesses to position themselves against, the question has to be asked whether an organisation’s use of AI will be judged on the regulatory driver alone – or will reputational risk be enough and markets demand ethical use of AI through the commercial equation?
Conclusion
The next waves of technology, including blockchain, AI, drones, robotics, smart sensors, smart medical devices and biotechnology, are set to completely overhaul society and business. But all raise many potential ethical concerns and challenges. The UK has the chance to play a key role in the next wave of innovation – but it is vital to strike the right balance and achieve ethical as well as innovative business opportunities. ‘Ethics’ is not just a nice to have. It is an essential, practical and useful tool that will underpin robust, sustainable and fair business models and applications.