The European Union recently passed the Artificial Intelligence (AI) Act, which takes a nuanced, risk-based approach to regulation.
It categorised AI systems according to their potential impact on society.
Malaysia should look to this law as it contemplates its own AI legislation as part of efforts to be at the forefront of the digital economy while safeguarding ethical and societal norms.
The European AI Act categorises AI applications into risk levels. Stricter requirements are imposed on systems identified as "high-risk" due to their potential of affecting health, safety, and fundamental rights.
This segmentation allows the authorities to focus regulation on where it's most needed, ensuring that AI's innovative potential is not stifled by broad, one-size-fits-all regulations.
In January, Science, Technology and Innovation Minister Chang Lih Kang said the plan for AI regulation would start with the establishment of AI governance and code of ethics.
Malaysia, therefore, can adopt a similar stratified approach, tailoring regulations to the specific risks of different AI applications, thus nurturing innovation in low-risk areas while rigorously overseeing high-risk sectors.
Significantly, the Act obliges high-risk AI systems, such as critical infrastructure and law enforcement, to be subject to risk assessments, transparency, and human oversight assessments.
By implementing a comparable structure, Malaysia can ensure that AI systems in sensitive sectors are developed and deployed responsibly, with adequate safeguards to prevent misuse and harm.
Furthermore, the Act's nuanced handling of law enforcement exemptions that allow for the limited use of AI in controlled circumstances, demonstrates the importance of balancing public safety with individual rights.
Malaysia can benefit from establishing clear guidelines for the ethical use of AI by law enforcement, ensuring that technology serves as a tool for justice rather than of unwarranted surveillance.
The European AI Act also champions transparency and accountability, especially concerning general-purpose AI systems.
These provisions can serve as a model for Malaysia, emphasizing the need for AI developers to be transparent about the datasets and methodologies used.
Such transparency is crucial for building public trust and facilitating the responsible development and deployment of AI technologies.
Moreover, the Act's introduction of regulatory sandboxes and support mechanisms for small and medium enterprises (SMEs) and startups highlights the importance of fostering an environment conducive to innovation.
Malaysia can mirror this approach by establishing similar frameworks that allow businesses to experiment with AI technologies in a regulated setting, encouraging growth and innovation within the national tech ecosystem.
In essence, the European AI Act's risk-based approach to AI governance offers a balanced pathway for Malaysia, enabling the country to harness AI's benefits while mitigating its risks.
By adopting similar principles, Malaysia can create a robust legal framework that promotes innovation, protects citizens' rights, and positions the nation as a leader in the ethical use of AI technologies.
Source: https://www.nst.com.my/opinion/letters/2024/04/1035960/avoid-one-size-fits-all-approach-ai-governance