The Future Pace of AI Legislation Development
Looking ahead, the speed of AI legislation is set to increase. A 2023 report from the Stanford Institute for Human-Centered Artificial Intelligence stated:
“An AI Index analysis of the legislative records of 127 countries shows that the number of bills containing “artificial intelligence” that were passed into law grew:
from just 1 in 2016 to 37 in 2022.
Stanford Institute
An analysis of the parliamentary records on AI in 81 countries likewise shows that mentions of AI in global legislative proceedings have increased nearly 6.5 times since 2016.” Of the 127 countries analysed by Stanford University, 31 have passed at least one AI-related bill, and together they have passed a total of 123 AI-related bills since 2016. In the UK, the government published a white paper in March 2023 detailing its plans for implementing a pro-innovation approach to AI regulation, and consulted on the proposals until June 2023.
In the US, at least 25 states, Puerto Rico and the District of Columbia introduced artificial intelligence bills in the 2023 legislative session, and 15 states and Puerto Rico adopted resolutions or enacted legislation. The exponential rate at which AI grows, so too does the legislative requirement and when subject to audit, the bow-wave / backlog of work to do will be immense. Act now.
AI Legislation Is Coming, Is Your Business Ready?
As 2024 unfolds, we obviously find ourselves at the nexus of technological innovation and those regulatory frameworks which continue to grow. As Artificial intelligence (AI) continues to redefine the boundaries of possibility, AI systems increasingly influence every sector, global regulators are stepping up the pace to craft legislation that ensures safe, ethical, and responsible use of this transformative technology.
In December 2023 McKinsey stated (in their report entitled “As gen AI advances, regulators—and risk functions—rush to keep pace”).
“Organizations may be tempted to wait to see what AI regulations emerge. But the time to act is now. Organizations may face large legal, reputational, organizational, and financial risks if they do not act swiftly.”
McKisey
But at what cost?
Intellera Consulting in their paper entitled “THE AI ACT: HELP OR HINDERANCE FOR SME’S” provide a comparison between different scenarios to estimate the potential costs for SMEs in complying with the EU AI Act using both traditional and automated tools. In the traditional model (Scenario 1), where compliance costs are calculated based on the AI market value, the paper suggests a total compliance cost that could be around 17.3% of total revenues for an SME, which translates into a substantial financial burden, potentially running into millions of euros.
In contrast, when considering the use of automated tools and services (Scenario 3 and 3b), the paper proposes an alternative cost model that includes software subscription costs and estimates compliance costs as a percentage of R&D investments. This approach resulted in significantly lower compliance costs for SMEs, approximately 1.3% of total revenues.
Interella Consulting
These scenarios indicate that using automated tools, could offer SMEs a cost-saving of more than 10 times lower than the costs calculated based on the AI market value approach. This demonstrates the potential for significant savings and a lessened financial burden when using automated compliance tools compared to traditional methods. The exact quantification of the savings would depend on various factors such as the size of the company, the complexity of the AI systems it uses, and the specific costs associated with compliance activities. However, the paper clearly shows that automation and support services can lead to substantial savings for SMEs needing to comply with the AI Act.
Its here that dForce, in partnership with Modulos seek to help. We offer a robust solution to help businesses navigate, prepare and stay ahead of AI compliance and reduce the soon to be material cost of legislating in new ways.
dForce and Modulos: Your AI Compliance Navigators
In the midst of this fast-evolving regulatory landscape, dForce identified with growing trends and sought-out Modulos. We’ve partnered to serve you.
Modulos is an automated AI compliance tool that empowers businesses to stay abreast of legislative developments and effectively integrate compliance into their AI strategies.
The Modulos Responsible AI Platform assists businesses in developing AI in compliance with ethical and regulatory standards. It focuses on creating AI models that are explainable, transparent, and secure, ensuring that the decision-making process is understandable and trustworthy. With SaaS, VPC, and on-premises deployment options, Modulos provides flexibility while addressing the requirements of responsible AI governance.
Conclusion
The trajectory of AI legislation is clear—more, faster, and more complex regulations are on the horizon. But with dForce and Modulos, businesses can transform compliance from a reactive task into a strategic advantage. By integrating proactive, automated compliance tools into your business practice, you can ensure that your use of AI remains on the right side of the law, and the forefront of innovation.
As AI continues to shape our future, let us be the guardians of your compliance journey.