Technology

On July 18, 2024, the President of the European Commission, Ursula von der Leyen, was reconfirmed by the European Parliament for a second five-year term. As part of the process, she delivered a speech before the Parliament, complemented by a 30-page program, which outlines the Commission’s political guidelines and priorities for the next five years. The guidelines introduce a series of forthcoming legislative proposals across many policy areas, including on defence and technology security.Continue Reading The Future of EU Defence Policy and a Renewed Focus on Technology Security

This update focuses on how growing quantum sector investment in the UK and US is leading to the development and commercialization of quantum computing technologies with the potential to revolutionize and disrupt key sectors.  This is a fast-growing area that is seeing significant levels of public and private investment activity.  We take a look at how approaches differ in the UK and US, and discuss how a concerted, international effort is needed both to realize the full potential of quantum technologies and to mitigate new risks that may arise as the technology matures.

Quantum Computing

Quantum computing uses quantum mechanics principles to solve certain complex mathematical problems faster than classical computers.  Whilst classical computers use binary “bits” to perform calculations, quantum computers use quantum bits (“qubits”).  The value of a bit can only be zero or one, whereas a qubit can exist as zero, one, or a combination of both states (a phenomenon known as superposition) allowing quantum computers to solve certain problems exponentially faster than classical computers. 

The applications of quantum technologies are wide-ranging and quantum computing has the potential to revolutionize many sectors, including life-sciences, climate and weather modelling, financial portfolio management and artificial intelligence (“AI”).  However, advances in quantum computing may also lead to some risks, the most significant being to data protection.  Hackers could exploit the ability of quantum computing to solve complex mathematical problems at high speeds to break currently used cryptography methods and access personal and sensitive data. 

This is a rapidly developing area that governments are only just turning their attention to.  Governments are focusing not just on “quantum-readiness” and countering the emerging threats that quantum computing will present in the hands of bad actors (the US, for instance, is planning the migration of sensitive data to post-quantum encryption), but also on ramping up investment and growth in quantum technologies. Continue Reading Quantum Computing: Developments in the UK and US

Although the final text of the EU AI Act should enter into force in the next few months, many of its obligations will only start to apply two or more years after that (for further details, see our earlier blog here). To address this gap, the Commission is encouraging industry to take early, voluntary steps to implement the Act’s requirements through an initiative it is calling the AI Pact. With the upcoming European elections on the horizon, the Commission on 6 May 2024 published additional details on the AI Pact and encouraged organizations to implement measures addressing “critical aspects of the imminent AI Act, with the aim of curbing potential misuse” and contributing “to a safe use of AI in the run-up to the election.”Continue Reading European Commission Calls on Industry to Commit to the AI Pact in the Run-Up to the European Elections

On March 14, the Federal Communications Commission (“FCC”) is expected to approve a Report and Order (“R&O”) that would create a voluntary cybersecurity labeling program for Internet of Things (“IoT”) devices.  As previewed in the Notice of Proposed Rulemaking (“NPRM”) released last August, which we covered here, this IoT Labeling Program would “provide consumers with an easy-to-understand and quickly recognizable FCC IoT Label that includes the U.S. government certification mark (referred to as the Cyber Trust Mark).”  

The R&O explains that the IoT Labeling Program would “help consumers make informed purchasing decisions, differentiate trustworthy products in the marketplace, and create incentives for manufacturers to meet higher cybersecurity standards.”  It provides details about the program and how manufacturers can seek authority to use the FCC IoT Label:Continue Reading FCC Planning to Move Forward with Voluntary IoT Labeling Program

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

Earlier today, the Federal Trade Commission’s (“FTC”) Office of Technology announced that it will hold a half-day virtual “FTC Tech Summit” on January 25, 2024 to address key developments in the field of artificial intelligence (“AI”).

The FTC’s event website notes that the Summit will “bring together a diverse set of perspectives across academia, industry

Continue Reading FTC to Hold Half-Day Virtual Tech Summit on AI

In late December 2023, the Federal Communications Commission (“FCC”) published a Report and Order (“Order”) expanding the scope of the data breach notification rules (“Rules”) applicable to telecommunications carriers and interconnected VoIP (“iVoIP”) providers.  The Order makes several notable changes to the prior rules, including broadening the definitions of a reportable “breach” and “covered data,” requiring covered entities to notify the FCC in addition to federal law enforcement of breaches, and modifying certain customer notification requirements.  The Rules are expected to become effective sometime in 2024, after they are reviewed by the Office of Management and Budget and the FCC’s Wireline Competition Bureau (“Bureau”) announces the effective dates by subsequent public notice.Continue Reading The FCC Expands Scope of Data Breach Notification Rules

Technology companies are grappling with unprecedented changes that promise to accelerate exponentially in the challenging period ahead. We invite you to join Covington experts and invited presenters from around the world to explore the key issues faced by businesses developing or deploying cutting-edge technologies. These highly concentrated sessions are packed with immediately actionable advice. Each day closes with an industry spotlight, providing insights from leading tech authorities. This year’s industry spotlights will feature:

  • Dennis Garcia, Assistant General Counsel, Microsoft – Emerging Trends for AI in Latin America
  • Janel Thamkul, Deputy General Counsel, Anthropic – The Frontier Model Landscape
  • Eric Sprink, CEO, Coastal Community Bank – Developments in the Regulatory Landscape

Continue Reading Covington’s Fifth Annual Technology Forum – Looking Ahead: New Legal Frontiers for the Tech Industry

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