The future Regulation of Artificial Intelligence and relations with third States

Abstract

The Proposal for an Artificial Intelligence Act is one of the most representative features of the new regulatory model displayed by the European Union to regulate activities in the digital environment. The purpose of this work is to analyze the implications of the future Regulation from a Private international law perspective. A relevant provision in this regard is art. 2 (1) that establishes the territorial scope of application of the Regulation. The provision plays though a different role depending on the perspective we adopt to analyze it: that of the economic actors, that of the national competent authorities or that of the judicial courts. The provision has been criticized because it provides for an extraterritorial application of the Regulation. The work analyzes the justifications of such broad application and the connecting factors that determine the territorial application of the Regulation. An analysis is also included of the problems that may exist to ensure the effective enforcement of the decisions adopted by national surveillance authorities in cases where the provider or user of the AI systems are established in a third state. Finally, the work examines if, similar to what has happened with the GDPR, the future AI Act will produce the Brussels effect – i.e. if it will imply a de facto and de iure harmonization of the regulatory standards of AI in third states.