Business continuityThe Regulation of AI: Where does it stand in 2024? 

The Regulation of AI: Where does it stand in 2024? 

In 2024, AI regulation will continue to be an important global issue, and many countries are developing legislative frameworks intended to balance technological advancement with the protection of essential rights and security. 

The stances regarding regulation vary considerably across continents. Europe takes the lead with comprehensive regulations, while other areas, such as North America and Asia, follow more diverse routes. 

The Regulation of AI Where does it stand in 2024 

Europe 

With its approval of the EU AI Act, which will take effect in August 2024, the European Union has made a significant step. Establishing a divided regulatory system based on the risk level of AI applications, this legal structure is the first of its kind in a major global jurisdiction. Strict safety and transparency standards will apply to AI systems considered high-risk, such as those used for credit assessment. The use of facial recognition without permission in public areas is one example of AI practices that are considered to be incompatible with European principles. (KPMG)​ (Deloitte United States). 

United States 

A more fragmented approach has been taken by the United States. A number of initiatives are being developed at the state and federal level for AI regulation, but there is no unified federal law. Current discussions center on how federal agencies, such as the FTC, may control certain uses of AI, particularly those that impact consumer rights and privacy. Nonetheless, in comparison to Europe, tech companies continue to function under a less stringent regulatory framework. 

The Biden administration has advocated for development firms to adhere to ethical standards with a focus on security and privacy, among other things, through the 2023 Executive Order. But no strict, cohesive legislation exists. The deepfakes law, which focuses on algorithmic transparency and data protection, is one example of a number of states, including California. (Foley & Lardner LLP). 

Asia 

Although there are various methods, several Asian countries have progressed in establishing specific data protection laws in relation to AI. 

China 

For China, the government’s objectives of maintaining strict control over technology and its use align with AI regulation. Chinese laws emphasize social stability and national security, and they restrict algorithms in certain fields, such as censorship of online content. The Personal Information Protection Law (PIPL), which sets strict rules for the collection and use of personal data in AI applications, has also contributed to China’s advancement in AI regulation. 

Japan and South Korea

On the other hand, Japan and South Korea are advancing with regulations that foster innovation while safeguarding citizens’ rights, although with a less restrictive approach than Europe.  

Japan has updated its Personal Information Protection Act (APPI) in order to address the challenges posed by the advancement of artificial intelligence. The amendment stresses the importance of protecting citizens’ personal data in an environment that is becoming more and more AI-dominated. 

Following a less restrictive approach than China, South Korea is also developing a regulatory system that aims to balance technological advancement with the protection of fundamental rights. (Foley & Lardner LLP)​ (Chambers Practice Guides). 

Mexico 

Although the projects are still in the early phases, countries in Latin America such as Mexico are starting to think about establishing regulatory frameworks. Mexico has demonstrated a desire to follow global trends, but it faces obstacles like a lack of regulatory frameworks and the requirement to comply with trade and data protection laws already in place (Chambers Practice Guides). 

Mexico is still in the process of creating a thorough legal framework for artificial intelligence. The National AI Alliance (ANIA) was founded in 2023 with the goals of fortifying the nation’s AI ecosystem and laying the groundwork for upcoming legislation. This proposal, supported by a multidisciplinary group of experts and a Mexican senator, might have a big impact on regulatory policies in the years to come. Congress has discussed the necessity to regulate this technology, but no concrete legislation has been passed as of yet. 

This international overview demonstrates that although there is a common desire to govern AI, there are major regional differences in the methods and pace of implementation, which are a reflection of the political, economic, and cultural interests of each area. 

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