New Artificial Intelligence Regulation In Europe: How Will It Affect Online Gambling?

2024-11-25 10:22:13

The New EU Artificial Intelligence Regulation: A Significant Change in the AI ​​Market There has been intense debate recently about the artificial intelligence regulation, a legislative act of the European Union that will have direct effects on all of us and on the

The New EU Artificial Intelligence Regulation: A Significant Change in the AI ​​Market

There has been intense debate recently about the artificial intelligence regulation, a legislative act of the European Union that will have direct effects on all of us and on the artificial intelligence (AI) market. Unlike a directive, this regulation does not require implementation by Member States through a national law, but is applied directly.

The Regulation, in development since April 2021, is close to being finalized, although the final text has not yet been published. Last December, after a marathon of three-day talks, the Council presidency and the European Parliament negotiators reached a provisional agreement on the proposal for harmonized rules on artificial intelligence, known as the Artificial Intelligence Regulation.

The draft regulation seeks to ensure that AI systems introduced into the European market and used in the EU are safe and respect fundamental rights and EU values. This landmark proposal also aims to stimulate investments and innovation in AI in Europe. Representatives of the Member States have described the proposal as “historic” as it would be the first unified law on the subject and could serve as a model for legislation for other countries.

Although a final text has not yet been published, some key points of the legislation have been defined. The regulation will adopt a scheme based on the level of risk that each AI system may represent: the higher the risk, the higher the rules imposed on AI system providers. While for the first level no intervention is foreseen, the last level will be completely prohibited (unacceptable risk).

But what is meant by risk? The parameters for assessing the degree of risk of an AI system are the health, safety and fundamental rights of people. This means that AIs that pose an unacceptable risk to health, safety or fundamental rights will be banned.

Early analysts have spoken of a “risk pyramid”. At the base of this pyramid are low-risk AI systems, for which there are no obligations beyond those imposed by existing legislation, such as that relating to the processing of personal data (privacy).

The second level includes limited-risk AI systems, for which the Regulation would only impose generic transparency obligations.

The proposal sets out a robust methodology for risk management used to define “high-risk” AI systems. These systems will need to meet a number of requirements for trustworthy AI and follow conformity assessment procedures before they can be introduced into the Union market.

Predictable, proportionate and clear obligations are set out for both providers and users of such systems, with the aim of ensuring safety and compliance with existing legislation protecting fundamental rights throughout the life cycle of AI systems.

Bans, or the top of the risk pyramid, refer to practices that present unacceptable risks to EU health, safety and fundamental rights. In particular, such risks are considered to be associated with systems that have a high potential in terms of manipulating people through subliminal techniques or exploiting vulnerabilities of specific groups, such as minors or people with disabilities.

The regulation details prohibited practices, but it is necessary to determine whether artificial intelligence systems used in the gaming world fall into these categories.

Artificial intelligence (AI) is revolutionizing online casinos in various ways. Its main use is to improve the user experience, personalizing games and recommendations according to the tastes and behavior of each player. In addition, AI contributes to security, detecting and preventing fraud and problematic gambling by analyzing betting patterns and unusual behavior. It also optimizes casino operations, from customer service with chatbots to analyzing large volumes of data for more effective marketing strategies regarding no deposit bonuses or classic online casino welcome bonuses.
The provisional agreement states that the regulation on AI will beIt will apply two years after its entry into force, with some exceptions for specific provisions. This means that if the Regulation is published in 2024, as expected, the legislation will be fully applicable from 2026.

The history of legislation on artificial intelligence systems is being written these days, and the role it has and will have in the world of gaming and gambling is a discovery.

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