Emerging Technologies

On January 29 – 31, 2025, Covington convened authorities from across our practice groups for the Sixth Annual Technology Forum, which explored recent global developments affecting businesses that develop, deploy, and use cutting-edge technologies. Seventeen Covington attorneys discussed global regulatory trends and forecasts relevant to these industries, highlights of which are captured below.  Please click here to access any of the segments from the 2025 Tech Forum.

Day 1: What’s Happening Now in the U.S. & Europe

Early Days of the New U.S. Administration

Covington attorney Holly Fechner and Covington public policy authority Bill Wichterman addressed how the incoming administration has signaled a shift in technology policy, with heightened scrutiny on Big Tech, AI, cryptocurrency, and privacy regulations. A new Executive Order on AI aims to remove barriers to American leadership in AI, while trade controls and outbound investment restrictions seek to strengthen national security in technology-related transactions. Meanwhile, the administration’s approach to decoupling from China is evolving, with stricter protectionist measures replacing prior subsidy-based initiatives.Continue Reading Covington Technology Forum Spotlight – The Great Race: Keeping Up as Technology and Regulation Rapidly Evolve

The field of artificial intelligence (“AI”) is at a tipping point. Governments and industries are under increasing pressure to forecast and guide the evolution of a technology that promises to transform our economies and societies. In this series, our lawyers and advisors provide an overview of the policy approaches and regulatory frameworks for AI in jurisdictions around the world. Given the rapid pace of technological and policy developments in this area, the articles in this series should be viewed as snapshots in time, reflecting the current policy environment and priorities in each jurisdiction.

The following article examines the state of play in AI policy and regulation in China. The previous articles in this series covered the European Union and the United States.Continue Reading Spotlight Series on Global AI Policy — Part III: China’s Policy Approach to Artificial Intelligence

On 15 January 2024, the UK’s Information Commissioner’s Office (“ICO”) announced the launch of a consultation series (“Consultation”) on how elements of data protection law apply to the development and use of generative AI (“GenAI”). For the purposes of the Consultation, GenAI refers to “AI models that can create new content e.g., text, computer code, audio, music, images, and videos”.

As part of the Consultation, the ICO will publish a series of chapters over the coming months outlining their thinking on how the UK GDPR and Part 2 of the Data Protection Act 2018 apply to the development and use of GenAI. The first chapter, published in tandem with the Consultation’s announcement, covers the lawful basis, under UK data protection law, for web scraping of personal data to train GenAI models. Interested stakeholders are invited to provide feedback to the ICO by 1 March 2024.Continue Reading ICO Launches Consultation Series on Generative AI

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

On October 30, 2023, days ahead of government leaders convening in the UK for an international AI Safety Summit, the White House issued an Executive Order (“EO”) outlining an expansive strategy to support the development and deployment of safe and secure AI technologies (for further details on the EO, see our blog here). As readers will be aware, the European Commission released its proposed Regulation Laying Down Harmonized Rules on Artificial Intelligence (the EU “AI Act”) in 2021 (see our blog here). EU lawmakers are currently negotiating changes to the Commission text, with hopes of finalizing the text by the end of this year, although many of its obligations would only begin to apply to regulated entities in 2026 or later.

The EO and the AI Act stand as two important developments shaping the future of global AI governance and regulation. This blog post discusses key similarities and differences between the two.Continue Reading From Washington to Brussels: A Comparative Look at the Biden Administration’s Executive Order and the EU’s AI Act

On 13 October 2023, members of the G7 released a set of draft guiding principles (“Principles”) for organisations developing advanced AI systems, including generative AI and foundational models.

In parallel, the European Commission launched a stakeholder survey (“Survey”) on the Principles, inviting any interested parties to comment by 20 October 2023.  After the Survey is complete, G7 members intend to compile a voluntary code of conduct that will provide guidance for AI developers.  The Principles and voluntary code of conduct will complement the legally binding rules that EU co-legislators are currently finalizing under the EU AI Act (for further details on the AI Act, see our blog post here).

The Principles build on the existing OECD AI principles published in May 2019 (see our blog post here) in response to recent developments in advanced AI systems.  They would apply to all participants in the AI value chain, including those responsible for the design, development, deployment, and use of AI systems.Continue Reading G7 Countries Publish Draft Guiding Principles for Advanced AI Development

On 31 August 2023, the UK’s House of Commons Innovation and Technology Committee (“Committee”) published an interim report (“Report”) evaluating the UK Government’s AI governance proposals and examining different approaches to the regulation of AI systems. As readers of this blog will be aware, in March 2023, the UK Government published a White Paper setting out its “pro-innovation approach to AI regulation” which will require existing regulators to take responsibility for promoting and overseeing responsible AI within their sectors (for further information on the UK Government’s strategy, see our blog post here).

The Report recommends that the UK Government introduce a “tightly-focused AI Bill” in the next parliamentary session to “position the UK as an AI governance leader”.Continue Reading UK Parliament Publishes Interim Report on the UK’s AI Governance Proposals

On 21 June 2023, at the close of a roundtable meeting of the G7 Data Protection and Privacy Authorities, regulators from the United States, France, Germany, Italy, United Kingdom, Canada and Japan published a joint “Statement on Generative AI” (“Statement”) (available here). In the Statement, regulators identify a range of data protection-related concerns they believe are raised by generative AI tools, including legal authority for processing personal information, and transparency, explainability, and security. The group of regulators also call on companies to “embed privacy in the design conception, operation, and management” of generative AI tools.

In advance of the G7 meeting, on 15 June 2023, the UK Information Commissioner’s Office (“ICO”) separately announced that it will be “checking” whether businesses have addressed privacy risks before deploying generative AI, and “taking action where there is risk of harm to people through poor use of their data”.Continue Reading UK and G7 Privacy Authorities Warn of Privacy Risks Raised by Generative AI

On 11 May 2023, members of the European Parliament’s internal market (IMCO) and civil liberties (LIBE) committees agreed their final text on the EU’s proposed AI Act. After MEPs formalize their position through a plenary vote (expected this summer), the AI Act will enter the last stage of the legislative process: “trilogue” negotiations with the European Commission, Parliament and the Council, which adopted its own amendments in late 2022 (see our blog post here for further details). European lawmakers hope to adopt the final AI Act before the end of 2023, ahead of the European Parliament elections in 2024.

In perhaps the most significant change from the Commission and Council draft, under MEPs’ proposals, providers of foundation models – a term defined as an AI model that is “trained on broad data at scale, is designed for generality of output, and can be adapted to a wide range of distinctive tasks” (Article 3(1c)) – would be subject to a series of obligations. For example, providers would be under a duty to “demonstrate through appropriate design, testing and analysis that the identification, the reduction and mitigation of reasonably foreseeable risks to health, safety, fundamental rights, the environment and democracy and the rule of law prior and throughout development” (Article 28b(2)(a)), as well as to draw up “extensive technical documentation and intelligible instructions for use” to help those that build AI systems using the foundation model (Article 28b(2)(e)).Continue Reading EU Parliament’s AI Act Proposals Introduce New Obligations for Foundation Models and Generative AI

On 4 May 2023, the UK Competition and Markets Authority (“CMA”) announced it is launching a review into AI foundation models and their potential implications for the UK competition and consumer protection regime. The CMA’s review is part of the UK’s wider approach to AI regulation which will require existing regulators to take responsibility for promoting and overseeing responsible AI within their sectors (for further information on the UK Government’s strategy, including its recent AI White Paper, see our blog post here). The UK Information Commissioner’s Office (“ICO”) has also recently published guidance for businesses on best practices for data protection-compliant AI (see our post here for more details).Continue Reading UK’s Competition and Markets Authority Launches Review into AI Foundation Models