Recent development in technology led to AI being in the spotlight of general public and media. Some of us are terrified, some of us surprised, some excited by such technology shifts. However, what is the actual status of AI regulatory framework in EU and what are the key concerns for AI startups and SMEs implementing AI in their products and services. Let us find out together.

1. 17/05/2022
DSC ADRIA 23
Everyone is invited to AI-enhanced presence?!

2. Recent development in technology led
to AI being in the spotlight of the
general public and media. Some of us
are terrified, some of us surprised, and
some excited by such technology shifts.
However, what is the actual status of
the AI regulatory framework in the EU
and what are the key concerns for AI
startups and SMEs implementing AI in
their products and services?
Let us find out together!
IT IS ALL ABOUT PERSPECTIVE.....

3. AI (hrv.UI) is not coming, she was here
for years...
 Social networks Facebook, LinkedIn; Instagram
 Amazon, Kindle reccomandations
 eBay
 Deezer, Spotify
 Google tools and services
 Netflix
 Uber, Taxify
 Bank Loan approval
https://www.hansonrobotics.com/sophia/

4. “
”
HOMO FACTICIUS”* in making?
* lat. Made in artificial manner/mode, artificial
https://www.robow-website.com/

5. UNINTENDED CONSEQUENCES
 In the social sciences, unintended consequences (sometimes unanticipated consequences or
unforeseen consequences) are outcomes of a purposeful action that are not intended or foreseen.
The term was popularised in the twentieth century by American sociologist Robert K. Merton.[1]
 Unintended consequences can be grouped into three types:
 Unexpected benefit: A positive unexpected benefit (also referred to as luck, serendipity or a
windfall).
 Unexpected drawback: An unexpected detriment occurring in addition to the desired effect of the
policy (e.g., while irrigation schemes provide people with water for agriculture, they can increase
waterborne diseases that have devastating health effects, such as schistosomiasis).
 Perverse result: A perverse effect contrary to what was originally intended (when an intended
solution makes a problem worse).
https://en.wikipedia.org/wiki/Unintended_consequences

6. UNINTENDED CONSEQUENCES 1
 COBRA EFFECT
PROBLEM: Too many wild cobras in colonial India
SOLUTION: monetary awards for caught
wild cobras
UNITENDED CONSEQUENCE: cultivating cobras,
mutiflication of species and NOs

7. UNINTENDED CONSEQUENCES 2
 CASE OF YOUNG AFROAMERICAN GIRL
PROBLEM: prediction of recidivisam in Florida
SOLUTION : algoritms deisgned and trained for prediction of
crime recidivists
UNINTENDED CONSEQUENCE : white male 2x labeled as low risk, 2x more crime
recidivisam with Afroamerican population
18 YEAR OLD AFROAMERICAN GIRL WITH NO PREVIOUS CRIMINAL RECORD CAUGHT
IN ATTEMPT TO STEAL SECOND HAND BIKE, LABELED WITH HIGHER SCORE THAN 41
YEAR OLD WHITE MALE CAUGHT IN SHOPLIFTING AND ALREADY ERVED 5 YEAR
PRISON SENTANCE FOR ARMED ROBBERY

8. UNINTENDED CONSEQUENCES 3
 Auto complete in Google
PROBLEM: search speed
SOLUTION: auto complete FEATURE
UNINTENDED CONSEQUENCE: suggestion e.g. Are Jews humans!?

9. HOW TO CATCH AI WAVE?
"If there is an algorithm that can influence our
behavior, we need to understand why and how such
an algorithm works.."
KEVIN GIBBS, father of auto complete feature in Google
search engine

10. AI “made in
Europe”
 EU initiative on AI in spring 2018
 10 April 2018 25 European countries signed a Declaration of cooperation on Artificial
Intelligence (Croatia signed on 16 July 2018
 The Commission has selected 52 experts for the High-level Expert Group on Artificial
Intelligence (AI HLEG) giving them a mandate to deliver:
1. Ethics guidelines for trustworthy AI on 8 April 2019
2. Policy and investment recommendations for trustworthy Artificial
Intelligence June 2019
3. WHITE PAPER February 2020. (eco system of trust and ecosystem of
excellence)
4. Draft AI ACT (Regulation) 21 April 2021 expected December 2022

11. AI ethics guidelines
TRUSTWORTHY AI:
1. it should be lawful, complying with all
applicable laws and regulations;
2. it should be ethical, ensuring adherence to
ethical principles and values; and
3. it should be robust, both from a technical and
social perspective, since, even with good
intentions, AI systems can cause unintentional
harm.

12. EU primary law
(the Treaties of the European Union
and its Charter of Fundamental Rights)
1. Respect for human dignity
2. Freedom of the individual
3. Respect for democracy, justice and the rule of law
4. Equality, non-discrimination and solidarity including the
rights of persons belonging to minorities
5. Citizens rights

13. ETHICAL PRINCIPLES
AND VALUES
1. The Principle of Beneficence: “Do
Good”
2. The Principle of Non maleficence:
“Do no Harm”
3. The Principle of Autonomy:
“Preserve Human Agency”
4. The Principle of Justice: “Be Fair”
5. The Principle of Explicability:
“Operate transparently”

14. 7 key requirements that
AI systems should meet
in order to be deemed
TRUSTWORTHY
 Human agency and oversight
 Technical Robustness and safety
 Privacy and data governance
 Transparency
 Diversity, non-discrimination and
fairness
 Societal and environmental well-being
 Accountability

15. AI BY DESIGN
Privacy and data governance
 Privacy and data protection throughout a system’s entire lifecycle.
 Digital records of human behaviour may allow AI systems to infer not only individuals’ preferences, but also their
sexual orientation, age, gender, religious or political views.
 To allow individuals to trust the data gathering process, ensure data collected about them will not be used to
unlawfully or unfairly discriminate against them.
 Quality and integrity of data. When data is gathered, it may contain socially constructed biases, inaccuracies,
errors and mistakes (i.e. addressed prior to training with any given data set).
 Processes and data sets used must be tested and documented at each step such as planning, training, testing and
deployment.
 Access to data. In any given organisation that handles individuals’ data , data protocols governing data access
should be put in place.
 Scenarios where human intervention would not immediately be possible should also be considered.
https://www.hansonrobotics.com/sophia/

16. RISK BASED APPROACH AI ACT DRAFT

17. TIPS FOR
FUTURE
 CRO AI Croatian Association for
Artificial Intelligence
 AI ALLIANCE
European AI Alliance | Shaping
Europe’s digital future (europa.eu)

18. Thank you
marijana.sarolic@msrlegal.hr