{"id":477612,"date":"2022-07-25T11:57:17","date_gmt":"2022-07-25T08:57:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/european-or-not-make-sure-your-ai-business-sticks-to-eu-data-laws\/"},"modified":"2022-07-25T11:57:17","modified_gmt":"2022-07-25T08:57:17","slug":"european-or-not-make-sure-your-ai-business-sticks-to-eu-data-laws","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/european-or-not-make-sure-your-ai-business-sticks-to-eu-data-laws\/","title":{"rendered":"#European or not, make sure your AI business sticks to EU data laws"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40bbfad5c4b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40bbfad5c4b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/european-or-not-make-sure-your-ai-business-sticks-to-eu-data-laws\/#%E2%80%9CEuropean_or_not_make_sure_your_AI_business_sticks_to_EU_data_laws%E2%80%9D\" >&#8220;European or not, make sure your AI business sticks to EU data laws&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/european-or-not-make-sure-your-ai-business-sticks-to-eu-data-laws\/#Psst%E2%80%A6\" >Psst&#8230;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/european-or-not-make-sure-your-ai-business-sticks-to-eu-data-laws\/#Privacy_Shield_in_tatters\" >Privacy Shield in tatters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/european-or-not-make-sure-your-ai-business-sticks-to-eu-data-laws\/#Help_is_at_hand_%E2%80%93_eventually\" >Help is at hand \u2013 eventually<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/european-or-not-make-sure-your-ai-business-sticks-to-eu-data-laws\/#Looming_AI_legislation\" >Looming AI legislation<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CEuropean_or_not_make_sure_your_AI_business_sticks_to_EU_data_laws%E2%80%9D\"><\/span>&#8220;European or not, make sure your AI business sticks to EU data laws&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div id=\"article-main-content\">\n                            As we enter a new era defined by artificial intelligence and machine learning, the very foundation of many modern technologies is being put under a microscope by policymakers. That foundation? Data.<\/p>\n<p>Data is required for the refinement of most cutting-edge <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>, and it will only become more important in future as we develop more sophisticated AI and ML models, fueled by richer, higher quality data sets.<\/p>\n<p>However, there are strict regulations around how data can be used, particularly within the EU. The EU\u2019s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> Data Protection Regulation (GDPR) mandates that businesses need consent to store subject data in order to preserve the privacy of its citizens online and offline.<\/p>\n<div class=\"inarticle-wrapper growth-quarters channel-cta hs-embed-tnw\">\n<div id=\"hs-embed-tnw\" class=\"channel-cta-wrapper\">\n<div class=\"channel-cta-img\"><img class=\"js-lazy\" https:=\"\"\/><\/div>\n<p><noscript><img decoding=\"async\" src=\"https:\/\/thenextweb.com\/news\/src=\" https:=\"\"\/><\/noscript><\/p>\n<div class=\"channel-cta-input\">\n<h2 class=\"channel-cta-title\"><span class=\"ez-toc-section\" id=\"Psst%E2%80%A6\"><\/span>Psst&#8230;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"channel-cta-tagline\">Get a weekly dose of entrepreneurial insights from TNW&#8217;s founder Boris<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>These regulations affect AI companies the world over, however, because they restrict how data is moved out of the bloc \u2013 to servers in the US, say. Rely on cloud services in your tech stack? That means the rules probably affect you too.<\/p>\n<p>Observing these regulations is not straightforward, though. EU courts themselves have <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/techcrunch.com\/2022\/04\/28\/cjeu-gdpr-consumer-litigation\/\">repeatedly called into question<\/a> the legality of the framework for EU-US data transfer that supposedly abides by GDPR, and a new solution is still some way off. So it\u2019s essential all AI businesses, anywhere in the world, follow the situation closely.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Privacy_Shield_in_tatters\"><\/span>Privacy Shield in tatters<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The key problem for international software companies is data transfer from the EU to the US and back. The US is the EU\u2019s second biggest trading partner, and many of the world\u2019s biggest tech companies are based there, so using their services with data centres based in America often inevitably requires moving data across borders.<\/p>\n<p>That was governed, for a time, by the EU-US Privacy Shield framework agreed between the two powers. Then in 2020, this was invalidated by the European Court of Justice itself, on the grounds that US national security laws risked breaching EU citizens\u2019 data privacy.<\/p>\n<p>Since the ECJ delivered this verdict, data transfers have been allowed using <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/info\/law\/law-topic\/data-protection\/international-dimension-data-protection\/standard-contractual-clauses-scc_en\">\u2018Standard Contractual Clauses\u2019<\/a>, but this has not proven much more straightforward. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-30\/amazon-given-record-888-million-eu-fine-for-data-privacy-breach\">Amazon<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/techcrunch.com\/2022\/04\/27\/facebook-leaked-ads-document-meta-gdpr\/\">Meta<\/a> have been involved in legal disputes over how their algorithms work within the confines of EU law. In fact, Meta has even threatened <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/meta-could-pull-instagram-facebook-europe-data-sharing-ruling-2022-2?international=true&amp;r=US&amp;IR=T\">to pull itself out of Europe entirely<\/a> to avoid facing legal action against the EU. The Austrian Data Protection Authority meanwhile has ruled that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.dataprotectionreport.com\/2022\/02\/european-rulings-on-the-use-of-google-analytics-and-how-it-may-affect-your-business\/\">even using Google Analytics<\/a> to monitor your website\u2019s traffic numbers is illegal under GDPR, setting a precedent for other EU countries to follow.<\/p>\n<p>This leaves companies in a bind. Even if you don\u2019t want to do business in Europe, that doesn\u2019t mean you\u2019ll be able to avoid the hand of EU law. Let\u2019s say a business uses a data set that contains one respondent from Spain to develop a new product; the whole production process could unravel if said business doesn\u2019t adhere to GDPR. But how do you do that?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Help_is_at_hand_%E2%80%93_eventually\"><\/span>Help is at hand \u2013 eventually<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Fortunately, businesses may not be stuck in this legal quagmire forever. Hope has arrived in the form of the recently announced <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/es\/ip_22_2087\">Trans-Atlantic Data Privacy Framework<\/a>, the result of more than a year of behind-the-scenes negotiating and diplomacy but still some way from adoption<\/p>\n<p>According to the joint statement released at the time, it will \u201cprovide a durable basis for trans-Atlantic data flows, which are critical to protecting citizens\u2019 rights and enabling trans-Atlantic commerce in all sectors of the economy, including for small and medium enterprises.\u201d<\/p>\n<p>Until everything is ironed out, businesses will be left without clarity for many more months, making it harder for them to plan for the future ahead, so seek advice, and check every process that might present a hazard. What data sources do you use? What cloud services do you rely upon? Where are all of your customers based? While this grey area of international law remains, it\u2019s essential to be watertight on the answers to all these questions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Looming_AI_legislation\"><\/span>Looming AI legislation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>And there\u2019s an even more compelling reason for AI businesses to get on top of EU law now\u2026there\u2019s more of it to come. Following the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/digital-strategy.ec.europa.eu\/en\/policies\/regulatory-framework-ai\">regulatory framework proposal<\/a> that was laid out last year, the EU has said that new AI regulation (entirely separate to GDPR) \u201ccould enter into force in the second half of 2022 in a transitional period.\u201d<\/p>\n<p>The proposed regulation would adopt a risk-based <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach. In some high-risk cases \u2013 such as services underpinning critical infrastructure \u2013 AI systems will be subject to strict obligations before they can be used in the EU. These could include human oversight measures to provide transparency, risk assessment protocols and detailed compliance procedures. Flouting them would incur substantial fines.<\/p>\n<p>The decisions that AI-powered systems can make, particularly in the healthcare industry, have the capacity to change lives so it\u2019s crucial that businesses within said category stay vigilant, ensure that processes are transparent and focus on where data is stored or transferred.<\/p>\n<p>In the meantime, businesses must be proactive in their approach to data to avoid falling foul of EU laws. Every business wants to grow and at some point that means working in, or with, the EU and its vast population. And none want to have to foot the bill for a fine that could be avoided, especially when you would rather focus on innovating and expanding as an organisation. It\u2019s absolutely imperative that businesses tighten their operations, double check that their data sets sit in line with EU laws and get ready for further regulation.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/european-or-not-make-sure-your-ai-business-sticks-to-eu-data-laws\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;European or not, make sure your AI business sticks to EU data laws&#8221; As we enter a new era defined by artificial intelligence and machine learning, the very foundation of many modern technologies is being put under a microscope by policymakers. That foundation? Data. Data is required for the refinement of most cutting-edge technology, and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":477613,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/growth-quarters?filter_last=1&fit=1280,640&url=https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2022\/07\/Untitled-design-1-8.jpg&signature=8a1181678af747323009782520385516","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-477612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/477612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=477612"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/477612\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/477613"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=477612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=477612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=477612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}