University of Szeged

Faculty of Economics and Business

2022 May 10
Administration

Effectiveness of the European proposal on

AI, what actions can be taken by business
leaders

Thesis outline
Supervisor Student

Prof.Dr. József Hajdú George polo

 2022 May 10
University of Szeged
Faculty of Economics and Business
Administration

Table of Contents

I INTRODUCTION

II ANALYSIS OF THE EU REGULATION ON AI SYSTEMS FROM LEGAL ASPECTS

III PRACTICAL ANALYSIS: RECOMMENDATION BY THE BUSINESS LEADERS

Thesis outline
IV CONCLUSION & DISCUSSIONS

REFERENCES

2
2
 • Overview :
I INTRODUCTION
History of AI, digital Gap in terms of labor law, problems with
AI in many sectors is the actual reason behind the EU
proposal on AI.

• Research question:
How effective are the AI regulation on EU companies? And could
it be final regulation?

• Methodology: (Qualitative research)

Primary resource: (the actual legislation, court decision)
Secondary resource: (literature reviews)
Observations

• Hypothesis:
European proposal on AI is adequate and sufficient to secure
labor forces in the market.
• Structure of the thesis 32
 II ANALYSIS OF THE EU REGULATION ON AI SYSTEMS FROM LEGAL ASPECTS

TITLE I TITLE III

GENERAL PROVISIONS HIGH-RISK AI
SUBJECT MATTER 1- Unacceptable Risk
SYSTEMS
SCOPE OF THE REGULATION
• Social scoring in public or private systems
DEFINITIONS
• Biometric, real-time systems for manipulation and law enforcement
• Subliminal and manipulative systems and algorithms
TITLE II
2- High Risk
PROHIBITED ARTIFICIAL INTELLIGENCE
• AI in critical infrastructure, and biometric ID of people
PRACTICES
• AI in Education, Training, recruiting and employee management
• AI injustice and democratic processes

3- Limited or Minimal Risk

• AI in chatbots, video games, spam filters, etc

• AI in process-based applications like ERP pr CRM systems
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• Other AI environments
 II ANALYSIS OF THE EU REGULATION ON AI SYSTEMS FROM LEGAL ASPECTS
Ten requirements for High-risk AI systems in the EU
Risk Management System
Implementation of the Risk management system to document and maintain, continuous the operations of the AI environment

Data & Data Governance

Training validating and testing models with data are subject to appropriate data governance and management practices

Technical Documentation
Before launch technical documents must be available allowing clients and regulatory authorities to access the functional risk.

Record-Keeping
AI systems must have automatic event logs the monitor system conformance and operations

Transparency & Provision of information to users

An appropriate level of operational transparency including the ability to access the output of the system must be available to the user

Human Oversight
AI systems shall include the ability for human oversight through software interfaces

Accuracy, Robustness & Cybersecurity

AI systems need to be designed with and include accuracy, robustness (i.e.. resilience), and cybersecurity and maintained around these principles throughout its lifecycle

Quality Management & Conformity Assessments

The AI system must have quality management in place and have a conformity assessment performed prior to launch

Country- and EU-level Registration

All AI systems must register at the country level and this information will equally be recorded at the EU level. A CE marking will accompany all High-risk AI system

Monitoring and enforcement

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Providers of systems are required to collect, document, and analyze data from systems in the market
TITLE IV
TRANSPARENCY OBLIGATIONS FOR CERTAIN AI
SYSTEMS
TITLE V
MEASURES IN SUPPORT OF
INNOVATION
TITLE VI
GOVERNAN
CE
TITLE VII
EU DATABASE FOR STAND-ALONE HIGH-RISK AI
SYSTEMS
TITLE VIII
POST-MARKET MONITORING, INFORMATION SHARING, MARKET
SURVEILLANCE
TITLE IX
CODES OF
CONDUCT
TITLE X
CONFIDENTIALITY AND
PENALTIES
TITLE XI
DELEGATION OF POWER AND COMMITTEE
PROCEDURE
TITLE XII 6
FINAL
III PRACTICAL ANALYSIS: RECOMMENDATION BY THE BUSINESS LEADERS

1- Cases on the Risks

2- Consider action by business leaders

Who should be involved in AI governance?

• The board's involvement:

• Business leader accountability:
• Continuous monitoring:
• The role of purchasing:
• Communication:

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IV CONCLUSION & DISCUSSIONS

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 REFERENCES
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL LAYING DOWN HARMONISED RULES ON ARTIFICIAL
INTELLIGENCE (ARTIFICIAL INTELLIGENCE ACT) AND AMENDING CERTAIN UNION LEGISLATIVE ACTS

ANNEX Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL LAYING DOWN HARMONISED RULES ON ARTIFICIAL
INTELLIGENCE

29
 University of Szeged
Faculty of Economics and Business

2022 May 10
Administration

Thank you
for listening!

Thesis outline
Supervisor Student

Prof.Dr. József Hajdú George polo

10