AIGP Study Guide
Module 5: Existing Laws & AI · BoK III

The Lay of the Land

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AI may dodge a dedicated statute, but it lives in the same legal context as every other technology: ALL existing laws for a sector or jurisdiction still apply when AI is used. Adoption falls into two categories - an existing function done a new way, or a wholly new process AI made possible.

AI may dodge a dedicated statute, but it does not exist in a vacuum. It lives in the same legal context as every other technology.

Key concept

ALL existing laws for a sector or jurisdiction still apply when AI is used → employment, housing, health, privacy, product safety and anti-discrimination law. This is especially true for regulated industries → finance, transportation, pharmaceuticals, human resources. Regulatory requirements should be accounted for throughout the AI development life cycle, with controls targeted to AI's risks.

The two categories of AI adoption:

Category 1 · Existing function, new way

Any regulatory requirements that applied to the function continue to apply to the AI-driven version → safety standards, software liability, consumer protection, data retention and disclosure. Using AI does not allow bypassing or ignoring applicable laws, exactly as if a human performed the work manually.

Category 2 · A new process AI made possible

The question becomes how existing requirements apply to the new process → assess which laws are in scope, what reviews are required, what risks the AI poses, what controls mitigate them. Most relevant in financial services, healthcare, transportation, employment, education → elsewhere, general consumer protection and product safety still bite.

Key terms - quick answers

What is “Existing laws principle”?
All existing sector and jurisdiction laws still apply when AI is used; AI usually adds new obligations on top.
What is “Category 1 adoption”?
An existing function performed a new way via AI - prior regulatory requirements continue to apply.
What is “Category 2 adoption”?
A new process made possible by AI - the question is how existing requirements apply to it.

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