Innovation v/s Regulation: First International AI And The Future Of Artificial Intelligence?

The US, EU and UK sign the world's first international AI treaty, a global initiative to establish comprehensive standards for AI governance and ensure that AI technologies are developed and deployed in ways that respect human rights and uphold ethical standards. How will this AI Treaty shape the future of Human-AI co-existence?

The AI treaty is a collective global effort to address the challenges posed by AI and ensure the protection of human rights, equality, and privacy in the face of rapidly advancing technology.

Developed over several years, the treaty was officially adopted in May 2024 after discussions involving 57 countries. The Framework Convention on Artificial Intelligence (AI) is the world’s first international treaty specifically aimed at establishing legally binding standards for the use of AI systems.

While the AI treaty shares similarities with the EU AI Act, which came into force earlier in 2024, its reach extends beyond Europe, building a broader global consensus on AI regulation.

The AI treaty holds each signatory accountable for any harm or discrimination caused by AI systems, offering citizens a means of legal recourse in cases of AI-related rights violations. Though consequences, such as fines, have yet to be fully implemented, the AI treaty mandates continuous monitoring and compliance checks.

A key element of the Framework Convention is the establishment of a Conference of the Parties, an oversight body tasked with ensuring the proper implementation of the AI treaty. This body also facilitates cooperation among stakeholders, including public hearings to address emerging challenges in AI governance.

According to Lord Chancellor and Justice Secretary, Shabana Mahmood: “AI has the capacity to radically improve the responsiveness and effectiveness of public services and turbocharger economic growth.

However, we must not let AI shape us, we must shape AI. This convention is a major step to ensuring that these new technologies can be harnessed without eroding our oldest values, like human rights and the rule of law.”

Though the AI treaty doesn’t apply to matters of national defence or certain R&D activities, it aims to set a global standard for AI governance, one that promotes responsible innovation while safeguarding fundamental human rights.

The global sentiment on AI treaty

Fundamentally, the global AI Treaty focuses on protecting the human rights of individuals affected by AI systems.

It is a critical step in addressing the growing concerns about how artificial intelligence could infringe on fundamental human rights, such as privacy, freedom, and equality. As AI accelerates to evolve and integrate in almost all aspects of life, the potential for misuse or unintentional harm grows. Nevertheless, we need a global push for a framework that ensures the responsible use of AI technologies.

However, the AI treaty has sparked a debate between those advocating for regulation and those worried about how it will stifle innovation.

The proponents of the global AI Treaty believe that it would ultimately lead to a more responsible and trustworthy development of AI.

“Promoting the safe and trustworthy development of AI through the international (AI) treaty on global AI standards is welcome for the future use of AI. Adding greater accountability for AI misuse and breaches of privacy encourages leaders and regulators to take a more considered and cautious approach to AI development to mitigate risks”, says Sridhar Iyengar, Managing Director of Zoho Europe.

On the other hand, critics argue that over-regulation could dampen the rapid technological progress driven by AI. Jay Limburn, Chief Product Officer at AI data platform Ataccama, warns: “While it is important to mitigate the risks that AI poses, there should be a measured approach to any regulation to avoid stifling innovation.”

Experts like Libero Raspa, Director of consultancy adesso UK, advocate the collaboration between businesses and regulators. “Working with business partners and AI experts that have already proved AI concepts will instil confidence in AI adoption, addressing the multitude of questions around new solutions and fuelling growth while minimising risks”, he says.

The AI Treaty, essentially, is being viewed by many as a balancing act - one that strives to protect human rights while encouraging the technological advancements that AI promises.

The formation of a global AI Treaty

The journey that began with a historic agreement in 2019, culminated with the formation of the Ad Hoc Committee on Artificial Intelligence (CAHAI). The Committee explored the feasibility of an international AI regulatory framework. In 2022, the Committee on Artificial Intelligence (CAI) took over CAHAI to draft and negotiate the AI treaty text. 

The present-day Framework Convention has been shaped through collaboration among the 46 member states of the Council of Europe, along with input from observer states such as the United States, Canada, and Japan, and contributions from non-member states like Australia, Israel, and Argentina.

The participation from 68 international representatives spanning civil society, academia, and industry across global governments gave the AI treaty multi-stakeholder approach.

How is the Global AI Treaty going to shape the future of innovation?

This summer the European Union (EU) became the first jurisdiction to implement a comprehensive framework governing the development and deployment of AI technologies. The aim of EU AI Act, which came into force on August 1, 2024, is to regulate high-level AI models, particularly those equipped with significant computing power.

Most importantly, the Act introduces phased implementation and strict compliance obligations to ensure AI is developed with safety and ethical standards in mind.

However, fearing the infringement these regulations might cause to the innovation, corporations are expressing their concerns. For instance, Meta halted the rollout of its Llama2 model in the EU, citing regulatory restrictions that prevent European users from accessing cutting-edge AI tools.

According to Matt Smith, Managing Director of Technology Transformation at Investigo:

"AI adoption isn’t slowing down. So, businesses need to embrace it, but with the right guidelines and expertise in place."

While the global AI treaty is undeniably a significant milestone in global AI governance, its ultimate impact will depend on how well nations implement and enforce these new regulations.