The “market” for AI contracting terms continues to evolve, and whilst there is no standardised approach (as much will depend on the use cases, technical features and commercial terms), a number of attempts have been made to put forward contracting models. One of the latest being from the EU’s Community of Practice on Public Procurement of AI, which published an updated version of its non-binding EU AI Model Contractual Clauses (“MCC-AI”) on March 5, 2025. The MCC-AI are template contractual clauses intended to be used by public organizations that procure AI systems developed by external suppliers. An initial draft had been published in September 2023. This latest version has been updated to align with the EU AI Act, which entered into force on August 1, 2024 but whose terms apply gradually in a staggered manner. Two templates are available: one for public procurement of “high-risk” AI systems, and another for non-high-risk AI systems. A commentary, which provides guidance on how to use the MCC-AI, is also available.Continue Reading EU’s Community of Practice Publishes Updated AI Model Contractual Clauses
Ofcom Explains How the UK Online Safety Act Will Apply to Generative AI
On November 8, 2024, the UK’s communications regulator, the Office of Communications (“Ofcom”) published an open letter to online service providers operating in the UK regarding the Online Safety Act (“OSA”) and generative AI (the “Open Letter”). In the Open Letter, Ofcom reminds online service providers that generative AI tools, such as chatbots and search assistants may fall within the scope of regulated services under the OSA. More recently, Ofcom also published several pieces of guidance (some of which are under consultation) that include further commentary on how the OSA applies to generative AI services.Continue Reading Ofcom Explains How the UK Online Safety Act Will Apply to Generative AI
European Commission Provides Guidance on AI Literacy Requirement under the EU AI Act
On February 20, 2025, the European Commission’s AI Office held a webinar explaining the AI literacy obligation under Article 4 of the EU’s AI Act. This obligation started to apply on February 2, 2025. At this webinar, the Commission highlighted the recently published repository of AI literacy practices. This repository compiles the practices that some AI Pact companies have adopted to ensure a sufficient level of AI literacy in their workforce. Continue Reading European Commission Provides Guidance on AI Literacy Requirement under the EU AI Act
CJEU Receives Questions on the AI Act Relating to Automated Decision Making
On November 25, 2024, Bulgaria’s Sofia District Court made a request for a preliminary ruling to the CJEU relating to the provisions on automated decision-making (“ADM”) under the AI Act. Case C-806/24 relates to a claim made by a telecoms company against a consumer who did not pay his bills. The consumer argues that the telecom company’s method of automatically calculating fees constitutes an ADM system subject to Article 86(1) of the AI Act, and raised questions about the transparency, human review, and fairness aspects of the ADM system. The Bulgarian court requests to the CJEU clarification on 17 questions of law, citing the AI Act, the Unfair Terms Directive, and the Consumer Rights Directive. Continue Reading CJEU Receives Questions on the AI Act Relating to Automated Decision Making
OECD Launches Voluntary Reporting Framework on AI Risk Management Practices
On February 7, 2025, the OECD launched a voluntary framework for companies to report on their efforts to promote safe, secure and trustworthy AI. This global reporting framework is intended to monitor and support the application of the International Code of Conduct for Organisations Developing Advanced AI Systems delivered by the 2023 G7 Hiroshima AI Process (“HAIP Code of Conduct”).* Organizations can choose to comply with the HAIP Code of Conduct and participate in the HAIP reporting framework on a voluntary basis. This reporting framework will allow participating organizations that comply with the HAIP Code of Conduct to showcase the efforts they have made towards ensuring responsible AI practices – in a way that is standardized and comparable with other companies.Continue Reading OECD Launches Voluntary Reporting Framework on AI Risk Management Practices
Council of Europe Adopts International Treaty on Artificial Intelligence
On May 17, 2024, the Council of Europe adopted the Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law (the “Convention”). The Convention represents the first international treaty on AI that will be legally binding on the signatories. The Convention will be open for signature on September 5, 2024.
The Convention was drafted by representatives from the 46 Council of Europe member states, the European Union and 11 non-member states (Argentina, Australia, Canada, Costa Rica, the Holy See, Israel, Japan, Mexico, Peru, the United States of America, and Uruguay). The Convention is not directly applicable to businesses – it requires the signatories (the “CoE signatories”) to implement laws or other legal measures to give it effect. The Convention represents an international consensus on the key aspects of AI legislation that are likely to emerge among the CoE signatories.Continue Reading Council of Europe Adopts International Treaty on Artificial Intelligence
European Commission Announces New Package of AI Measures
On January 24, 2024, the European Commission (“Commission”) announced that, following the political agreement reached in December 2023 on the EU AI Act (“AI Act”) (see our previous blog here), the Commission intends to proceed with a package of measures (“AI Innovation Strategy”) to support AI startups and small and medium-size enterprises (“SMEs”) in the EU.
Alongside these measures, the Commission also announced the creation of the European AI Office (“AI Office”), which is due to begin formal operations on February 21, 2024.
This blog post provides a high-level summary of these two announcements, in addition to some takeaways to bear in mind as we draw closer to the adoption of the AI Act.Continue Reading European Commission Announces New Package of AI Measures
Draft Delegated and Implementing Acts Pursuant to the Digital Services Act
From February 17, 2024, the Digital Services Act (“DSA”) will apply to providers of intermediary services (e.g., cloud services, file-sharing services, search engines, social networks and online marketplaces). These entities will be required to comply with a number of obligations, including implementing notice-and-action mechanisms, complying with detailed rules on terms and conditions, and publishing transparency reports on content moderation practices, among others. For more information on the DSA, see our previous blog posts here and here.
As part of its powers conferred under the DSA, the European Commission is empowered to adopt delegated and implementing acts* on certain aspects of implementation and enforcement of the DSA. In 2023, the Commission adopted one delegated act on supervisory fees to be paid by very large online platforms and very large online search engines (“VLOPs” and “VLOSEs” respectively), and one implementing act on procedural matters relating to the Commission’s enforcement powers. The Commission has proposed several other delegated and implementing acts, which we set out below. The consultation period for these draft acts have now passed, and we anticipate that they will be adopted in the coming months.Continue Reading Draft Delegated and Implementing Acts Pursuant to the Digital Services Act
EU Artificial Intelligence Act: Nearing the Finish Line
On December 9, 2023, the European Parliament, the Council of the European Union and the European Commission reached a political agreement on the EU Artificial Intelligence Act (“AI Act”) (see here for the Parliament’s press statement, here for the Council’s statement, and here for the Commission’s statement). Following three days of intense negotiations, during the fifth “trilogue” discussions amongst the EU institutions, negotiators reached an agreement on key topics, including: (i) the scope of the AI Act; (ii) AI systems classified as “high-risk” under the Act; and (iii) law enforcement exemptions.
As described in our previous blog posts on the AI Act (see here, here, and here), the Act will establish a comprehensive and horizontal law governing the development, import, deployment and use of AI systems in the EU. In this blog post, we provide a high-level summary of the main points EU legislators appear to have agreed upon, based on the press releases linked above and a further Q&A published by the Commission. However, the text of the political agreement is not yet publicly available. Further, although a political agreement has been reached, a number of details remain to be finalized in follow-up technical working meetings over the coming weeks.Continue Reading EU Artificial Intelligence Act: Nearing the Finish Line
Further Regulation of Illegal Advertising: UK Government Publishes Response to its Online Advertising Programme Consultation
The UK Government has announced plans to introduce new rules on online advertising for online platforms, intermediaries, and publishers. The aim is to prevent illegal advertising and to introduce additional protections against harmful online ads for under-18s. Full details are set out in its recently published response (“Response”) to the Department for Culture, Media & Sport’s 2022 Online Advertising Programme Consultation (“Consultation”).
The new rules would sit alongside the proposed UK Online Safety Bill (“OSB”), which addresses rules on user-generated content (see our previous blog here). Since the EU’s Digital Services Act (which starts to apply from February 2024, see our previous blog here) will not apply in the UK following Brexit, the OSB and any new rules following this Response, form the UK’s approach to regulating these matters, as distinct from the EU.Continue Reading Further Regulation of Illegal Advertising: UK Government Publishes Response to its Online Advertising Programme Consultation