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Clifford Chance

Clifford Chance

Artificial intelligence

Talking Tech

Tech Trends 2022 – All eyes on AI

We look ahead to what the expect this year

Artificial Intelligence 4 February 2022

As investment in the tech sector booms and potentially transformative technologies build momentum, responsible business and innovation becomes a focus for companies and regulators alike. In a short series of five articles, we look ahead to five key technology trends to watch in 2022. First up, Artificial Intelligence.

All eyes on AI

Machine learning and artificial intelligence (AI), with the capacity to unlock huge volumes of data, are already being used across a wide range of sectors to cut costs, improve performance and create new processes, services and products. In the year ahead, AI will remain a driver for innovation across sectors, from healthcare and pharmaceuticals, to automotive, to insurance and financial services. As the transformative potential of AI-enabled technology is being realised in practice, regulatory scrutiny and consumer concern about the legal, ethical and reputational risks of using AI continue to grow.

What's next?
  • Legislation to address the risks posed by AI: In 2021, we saw some local or targeted laws passed (for example, New York City's law focusing on AI in recruitment) and a number of guidelines, frameworks and standards to help shepherd the use of AI in certain sectors or jurisdictions. In the year ahead, we expect to see regulation coming to the fore: the European Union's proposed AI regulation is being viewed with interest, given its potential for far-reaching scope and influence; a draft regulation for promotion of the AI industry in the Shenzhen Special Economic Zone may be enacted; and US federal regulation is on the horizon, following the introduction of the Algorithmic Justice and Online Platform Transparency Bill in the Senate in 2021, and a recent announcement by the US Federal Trade Commission. We'll also see further laws targeting specific types of AI-enabled technology, such as autonomous vehicles and facial recognition technology.
  • Responsible AI: The hidden or unethical use of AI, or failure to tackle the risk of AI bias, could cause severe reputational damage to businesses. Regulatory oversight will also target prudential aspects of "responsible AI" – companies will be expected to have in place documented governance frameworks with clear lines of accountability, robust development, testing and monitoring processes throughout the AI life cycle, and those with oversight responsibilities will be required to have the right expertise. Businesses will also need to understand their reliance on any third-party AI.
  • Litigation risk: We have already seen court cases on AI explainability brought under data protection laws, and data protection authorities taking action on AI-based facial recognition technology. As legal requirements relating to AI expand and AI use becomes more widespread and potentially more independent of human involvement, questions arise as to development and use standards, liability, rights and ownership in potential copyright works and patentable inventions. IP and commercial disputes relating to AI can be expected in the coming year.
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