18 December
This week has not been carrying too many block buster events, nonetheless there are some important news you need to be informed about. Newnex is bringing the AI top-news and discussions on AI happening every week. Here is last week's top developments.
- The UK high court rules that AI invention is patentable. Previously UK IPO had refused to recognise AI patent considering it to be a computer program. Read more and Read other news (did not happen last week but important)
The gist:
The High Court has overturned a UK Intellectual Property Office (UKIPO) decision, ruling that an AI invention for media-file recommendations based on artificial neural networks (ANNs) is patentable. The judge found the invention did not fall within the computer program patentability exclusion, signaling a positive move for AI innovators. The decision is the first to consider the exclusion in the context of AI, potentially opening the door to patent protection for many AI inventions. The UKIPO has temporarily suspended its examination guidelines on AI-related patent applications while reviewing the judgment, highlighting the decision's significant impact on patent protection for AI in the UK. The ruling positions the UK as an AI-friendly jurisdiction and aligns with the government's push for AI development and innovation.
2. EU's AI act is moving ahead - Read here
The gist:
The European Parliament, Council of the European Union, and European Commission have reached a political agreement on the EU Artificial Intelligence Act (AI Act) on December 9, 2023. The agreement covers key aspects, including the scope of the AI Act, classification of AI systems as "high-risk," and law enforcement exemptions. The AI Act aims to regulate the development, import, deployment, and use of AI systems in the EU. The agreement includes prohibitions on certain AI practices, obligations for high-risk AI systems, the right for citizens to lodge complaints, rules for general-purpose AI models, the establishment of a European AI Office and AI Board for oversight, and sanctions for non-compliance. The AI Act is expected to enter into force 20 days after publication in the EU Official Journal, with organizations required to comply two years after its entry into force. During the transitional period, the Commission will launch an AI Pact for developers to voluntarily commit to key obligations outlined in the Act.
3. SEC probes investment advisors use of AI - Read more
The gist:
The U.S. Securities and Exchange Commission (SEC) is conducting a targeted examination, or "sweep," to gather information from investment advisers on their use and oversight of artificial intelligence (AI). The SEC's examinations division has sent requests for information to multiple investment advisers, seeking details on AI-related marketing documents, algorithmic models for managing client portfolios, third-party providers, and compliance training. While the SEC's scrutiny does not imply suspicion of misconduct, it aligns with SEC Chairman Gary Gensler's expressed skepticism about the potential risks associated with the financial industry's increasing reliance on AI. The examination is part of the SEC's broader rule-making agenda, which includes proposed rules around the use of data analytics, including AI, with a focus on addressing conflicts of interest. The sweep targets specific concerns such as managing AI-related conflicts of interest, contingency plans for system failure, and the impact of AI systems on regulatory or legal issues. Despite ongoing evaluations of AI policies by many firms, the SEC's examination faces challenges due to the widespread adoption of AI technologies in the industry.
4. SEC faces fierce pushback on plan to police AI investment advice - Read more
The gist:
Brokers, hedge funds, and investment advisers are strongly opposing the Securities and Exchange Commission's (SEC) proposed rules on the use of artificial intelligence (AI) in providing financial advice to investors. The SEC's July proposals, known as "Reg PDA," aim to eliminate conflicts of interest involving technology when advising clients. Critics argue that existing rules on investor protection are sufficient and that the SEC's definition of "technology" is too broad. Industry groups, including Sifma and the Investment Company Institute, have called for the withdrawal of Reg PDA, citing concerns about arbitrary rulemaking. The SEC, under Chair Gary Gensler, has faced significant opposition, and critics argue that the cumulative effect of numerous rule changes is straining the industry. Consumer groups support Reg PDA, emphasizing the need for stronger investor protections in the rapidly evolving landscape of AI-driven financial advice.
Other news:
- Swiss to use artificial intelligence post tests for passenger counting
- Agencies Have Begun Implementation but Need to Complete Key
requirements Read more
- EU policymakers reached a political agreement on Thursday (14 December) on legislation to bring the bloc’s product liability regime in line with technological developments, notably covering digital products like software, which includes Artificial Intelligence. Read more
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