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IAPP Europe Data Protection Congress 2024 Key Takeaways Orrick Herrington Sutcliffe LLP

The Importance of Data Protection in the Digital Age

In today’s digital landscape, data protection has become a critical aspect of maintaining individual privacy and security. The increasing reliance on digital technologies has led to a significant increase in the amount of personal data being collected, stored, and processed. This has raised concerns about the potential misuse of personal data, data breaches, and the erosion of individual rights. Key statistics:

  • 90% of data breaches involve human error
  • 75% of data breaches are caused by insider threats
  • The average cost of a data breach is $92 million
  • The importance of data protection cannot be overstated.

    Establishing AI Compliance Teams for Responsible AI Development and Deployment.

    The Need for AI Compliance Teams

    The rapid growth of artificial intelligence (AI) has led to a pressing need for companies to establish effective AI compliance teams. These teams are crucial in ensuring that AI systems are developed and deployed in a responsible and compliant manner. In this article, we will explore the importance of AI compliance teams and the role of a company AI officer.

    Key Components of AI Compliance Teams

    AI compliance teams should involve a cross-functional approach, comprising the following key components:

  • Legal: Responsible for ensuring that AI systems comply with relevant laws and regulations, such as data protection and intellectual property laws. IT: Focuses on the technical aspects of AI systems, including data storage, processing, and security. Data Protection: Ensures that AI systems handle sensitive data in accordance with data protection regulations. Business and Product Development: Provides input on the business and product development aspects of AI systems, ensuring that they align with the company’s overall strategy. Product Development: Responsible for the development and deployment of AI systems, ensuring that they meet the required standards and regulations.

    The AI Act: A New Era for Artificial Intelligence Regulation

    The European Union’s AI Act is a landmark legislation that aims to regulate artificial intelligence (AI) systems in the EU. The act, which is expected to come into effect in February 2023, sets out a framework for the development, deployment, and use of AI systems in the EU. The regulation is designed to ensure that AI systems are developed and used in a way that respects human rights, promotes transparency, and minimizes risks.

    Key Provisions of the AI Act

    The AI Act includes several key provisions that will shape the regulation of AI systems in the EU. Some of the key provisions include:

  • Definition of AI: The act defines AI as any system that uses artificial intelligence to process and analyze data, make decisions, or take actions. Exemptions: The act provides exemptions for certain types of AI systems, such as those used for research or development purposes. Liability: The act establishes liability for AI systems that cause harm to individuals or organizations.

    However, legitimate interest is not a suitable basis for training AI models that process personal data, as it is not a legitimate interest in the context of the GDPR.

    The Challenges of Untraining AI Models

    The difficulty in untraining AI models is a significant concern for companies. This is because once data is fed into an AI model, it can be challenging to remove the data and retrain the model to produce different results. This is particularly true for models that are trained on large datasets, where the data is often deeply embedded in the model’s architecture. The problem is exacerbated by the fact that many AI models are designed to learn from large amounts of data, which can make it difficult to remove the data and retrain the model. Additionally, the use of techniques such as gradient descent and backpropagation can make it difficult to update the model’s parameters to produce different results.*

    The Legitimate Interest Basis

    The legitimate interest basis is a common legal basis used to train AI models. The legitimate interest basis requires that the processing of personal data is necessary for the legitimate interests of the controller or processor. However, in the context of AI models, the legitimate interest basis is often used to justify the processing of personal data without proper consideration of the potential risks and benefits.*

    The Implications of the GDPR for AI Systems

    The GDPR has significant implications for AI systems, particularly in terms of the processing of personal data.

    The new AI Office will focus on developing and implementing AI policies and guidelines for the European Union.

    The Birth of the European AI Office

    The European Commission has taken a significant step forward in its efforts to regulate and promote the development of Artificial Intelligence (AI) within the European Union.

    EU-U.S. Data Privacy Framework: A Year of Implementation

    The European Union (EU) and the United States (U.S.) have been working towards a comprehensive data privacy framework for over a year now. The framework, officially known as the EU-U.S. Data Privacy Framework, aims to facilitate the exchange of personal data between the two regions while ensuring the protection of sensitive information. In this article, we will delve into the details of the framework, its implementation, and the recent developments in this area.

    Background and Objectives

    The EU-U.S. Data Privacy Framework is a result of the cooperation between the two regions to address the growing concerns about data protection and privacy.

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    The Importance of EU-U.S. Data Exchange in a Second Trump Administration

    In the event of a second Trump administration, a U.S. official highlighted the long-standing bipartisan consensus on the significance of EU-U.S. data exchange. This consensus underscores the importance of maintaining a robust and secure data exchange framework between the two regions.

    The Benefits of EU-U.S. Data Exchange

    The EU-U.S. data exchange framework has been a cornerstone of bilateral relations between the two regions for decades.

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