Co-regulation and AI-innovation: principles for a sustainable framework fostering innovation and acceptance of AI

Abstract

This contribution focuses on the EU AI-act, that is likely to become an important source of law in the not-so-far future, and specifically on the role that co-regulation might play in the regulation of AI-innovation. Amongst many other things, the Union legislator aims to promote AI innovation in view of the economic, environmental and societal advantages that could be expected from AI-technology. At the same time, the European Commission acknowledges that AI innovation involves risks. The legislator strives to find a balance between stimulating innovation and the AI-economy on the one hand, and lawful, trustworthy and safe AI, respecting the fundamental rights of EU citizens, on the other hand. This paper illustrates several principles that could be useful for regulators who are seeking to meaningfully involve private actors in the regulatory process, in their balancing act between stimulating innovation in the field of AI and ensuring acceptable results of such innovation for EU-citizens. Both formal and material aspects of the regulatory process will be addressed. Similar to the methodology I used in my dissertation, I address the EU’s own “better regulation” principles regarding the formal aspects. As to the material aspects, I evaluate the factors I found to be significant for AI-innovation and acceptance thereof, i.e. stringency, flexibility and legal certainty from an innovators perspective, and risk and trust from a AI-consumers perspective.

Keywords: AI, regulation, innovation, trust, trustworthy, co-regulation, private actors, liability, privacy