GDPR New Regulations To Affect AI
We live at a time where AI is taking a huge step into our daily lives. We see the presence of Artificial Intelligence in our phones, in our cars and even in our household appliances. While many might just nod and go with the flow, the GDPR thinks otherwise.
The European Union’s General Protection Regulations seems poised to freeze AI advancement. A few regulations are being brought out, and these regulations prescribe a future where consumers can refuse companies access to their personal information.
The regulation authority had put a deadline in effect for this to happen, but that deadline has come and gone. One of the many reasons why many companies failed to meet that deadline is because many companies still do not have the needed manpower and infrastructure to meet those requirements.
Though many see this regulation as a pain, it actually is not. The GDPR is actually taking steps keeping in mind our safety. Companies that operate AI services own petabytes of data that is useful for customers and companies alike. But when they fully digitize that data, consumers are alarmed, and fingers are pointed towards companies.
But one just cannot say that this new regulation from the GDPR does not affect AI.
AI Regulations
Before we get on what is the effect, we need to know what the GDPR is concerned about. The GDPR covers the collection, processing, and movement of data. This data can be used to identify a person, a name, email address, bank account information, social media posts, health information and so forth.
Now that we know what kind of information the GDPR covers, we can begin to discuss what is the penalty if companies fail to stick to these regulations. The penalty is 4 percent of global revenue. Is that a lot? Let us shed some perspective.
4 percent of Amazon’s 2017 revenue is $7.2 billion. So, is it a lot? Yes, it is. And that is the point. The GDPR wants to enforce this to companies, and if they fail to comply, they are basically done for. And these regulations apply to every single citizen to the EU.
According to Article 22 of the GDPR, AI cannot be used as the sole decision-maker in choices that have a significant or legal effect on others. So if a decision is needed to be made that has a connection to one’s bank account, then AI cannot make that move. The person himself would have to do that.
One way companies can escape this regulation is by not collecting info on EU residents.
Though that might sound like an easy task, it actually is not. The EU represents about 16 percent of the global GDP, while 11 percent of global online advertising and 9 percent of the global population. And with numbers like that, it would be hard for any company to make a decision like that.
Transparency
There is though a way that companies can have the best of both worlds. GDPR mandates that companies collecting consumer data should enable consumers to know how much information is being collected on them. They should also be given the power to correct, update, or even erase the data. They are also told to be given the right to know if the information has been truly erased or not.
And truth be told, these are some regulations that companies should follow. Because more the information companies have on us, the more power they have on us. Because today, information is everything.
