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Artificial intelligence under increasing scrutiny from regulators

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(The Center Square) — The Louisiana Joint Legislative Committee on Technology and Cybersecurity convened this week to discuss the rapidly evolving regulatory environment surrounding artificial intelligence and its implications for state and federal laws.

Graham Ryan, an attorney in the New Orleans office of Jones Walker LLP, said on Tuesday that 31 states have enacted AI legislation, with funding for AI initiatives skyrocketing from 2022 to 2023.

He noted that 150 AI bills have been introduced at the federal level, reflecting a growing urgency to address the technology’s challenges and opportunities.

Among the significant concerns raised during the hearing were issues related to deep fakes, privacy violations, workplace safety, national security, discrimination and child safety. Ryan emphasized that there is currently no widely accepted definition of AI, complicating efforts to regulate the technology effectively.

Federal agencies are already expressing a need for regulation.

The Federal Trade Commission, for example, has announced five enforcement actions against companies accused of overstating their AI capabilities. According to Ryan, the FTC has asserted its authority to act against deceptive AI practices in five instances.

The FTC alleged that social media companies have engaged in “vast surveillance” and privacy violations.

In a 2023 lawsuit, the FTC “charged Ring with compromising its customers’ privacy by allowing any employee or contractor to access consumers’ private videos and by failing to implement basic privacy and security protections, enabling hackers to take control of consumers’ accounts, cameras, and videos., the FTC alleged that companies like Amazon and Ring used highly sensitive consumer data to train their AI algorithms, potentially violating privacy rights.”

Ring settled, and refunds totaling $5.6 million were sent to consumers.

Despite the surge in AI-related legislation, only 120 AI bills have been introduced in Congress, with none yet passing. Ryan questioned what signals were emanating from Congress regarding future AI policy.

He suggested that stakeholders interested in shaping AI regulations should examine the Senate’s roadmap for AI, which outlines areas of consensus for future legislation.

Key themes include fostering US innovation in AI, enhancing public-private partnerships, and prioritizing competitive advancements that ensure smaller companies are not left behind.

The hearing also referenced the National Institute of Standards and Technology, which is developing safety standards for AI and creating testbeds for in-depth evaluations of AI models.

Current proposed bills, such as the Child Exploitation and Artificial Intelligence Expert Commission Act of 2024 and the AI Transparency in Elections Act of 2024, reflect the growing need for oversight in specific AI applications, including political advertising and child safety.

Ryan concluded by noting that data utilized by AI systems typically comes from three sources: Interactions with users, public data from the web, and data compiled by brokers from various services.