The European Union has recently released draft guidelines for regulating general purpose AI (GPAI) models, marking a significant step in implementing the EU AI Act that came into force on August 1, 2024. This development has important implications for AI companies and marketers using AI technologies, and not just in Europe. Whatever regulations are enacted in Europe usually end up coming into law elsewhere around the world.

Here are the key details and implications:

Draft Guidelines Overview

The EU has published a 36-page draft Code of Practice for providers of general purpose AI models. This draft outlines guidelines for managing risks and ensuring compliance with the AI Act. Key areas covered include:

• Transparency requirements
• Copyright compliance
• Risk assessment procedures
• Technical and governance risk mitigation measures

Key Provisions

Transparency and Disclosure

• AI companies must provide information about web crawlers used to train their models
• Detailed information about data used for training, testing, and validation must be released
• Results of testing processes for AI models should be disclosed

Risk Management

• Companies must establish a Safety and Security Framework (SSF) to assess and mitigate systemic risks
• Risk assessments are required at three stages: before training, during training, and during/after deployment
• Focus on preventing cyber attacks, discrimination, nuclear risks, and misinformation

Governance and Accountability

• Accountability for systemic AI risks must be placed at executive and board levels
• Outside experts must be brought in for independent testing and risk assessment

Copyright and Intellectual Property

• Measures to ensure compliance with EU copyright law and respect for content creators' rights

 

Implications for Marketers

Transparency in AI-Driven Marketing

Marketers using AI-powered tools like chatbots or content generation systems will need to ensure transparency. This includes:

• Disclosing when customers are interacting with AI systems
• Clearly labeling AI-generated content

Content Creation and Manipulation

• Stricter regulations on deepfakes and AI-generated content
• Marketers must be cautious when using AI for content creation or manipulation

Data Usage and Privacy

• Increased scrutiny on data collection and usage for AI-driven marketing campaigns
• Compliance with existing data protection regulations (GDPR) remains crucial

Risk Assessment for Marketing AI Tools

• Marketers may need to conduct risk assessments for AI tools used in campaigns
• Focus on preventing discrimination and misinformation in AI-driven marketing

Collaboration with AI Vendors

• Increased importance of partnering with AI vendors who prioritize compliance and ethical AI development

Skill Development

• Marketing teams may need to develop new skills or bring in experts to ensure compliance with AI regulations

 

Timeline and Enforcement

• The draft is open for feedback until November 28, 2024
• Final guidelines are expected to be published by May 1, 2025
• Enforcement will be phased, with full applicability expected within 24 months

 

Penalties for Non-Compliance

Companies found in violation of the AI Act could face fines of up to €35 million or 7% of global annual profits, whichever is higher.

While these guidelines primarily target AI developers, they will significantly impact how marketers use AI technologies. Marketers should stay informed about these regulations and adapt their strategies to ensure compliance while maintaining effective AI-driven marketing practices.

 

Sources:

 https://www.engadget.com/ai/the-eu-publishes-the-first-draft-of-regulatory-guidance-for-general-purpose-ai-models-223447394.html

 https://digital-strategy.ec.europa.eu/en/library/first-draft-general-purpose-ai-code-practice-published-written-independent-experts

 https://www.upperscore.be/what-marketers-should-know-about-the-european-ai-act/

 https://www.jasper.ai/blog/eu-ai-act

 https://techcrunch.com/2024/11/14/eu-ai-act-draft-guidance-for-general-purpose-ais-shows-first-steps-for-big-ai-to-comply/

 https://www.cmswire.com/digital-marketing/what-europes-ai-act-could-mean-for-marketers/

 https://www.b2bmarketing.net/feature-post-b2b-insights/eu-ai-act-implications-for-b2b-marketers/

 https://indianexpress.com/article/technology/artificial-intelligence/new-eu-ai-code-of-practice-draft-rules-9671152/

 https://www.williamfry.com/knowledge/european-ai-office-publishes-draft-general-purpose-ai-code-of-practice/