The Asia-Pacific (APAC) region is experiencing swift advancements in artificial intelligence (AI) regulation, with at least 16 jurisdictions now offering some form of AI guidance or legislation. These regulations vary widely: some countries are enacting specific AI laws, while others rely on non-binding principles and standards. Despite these differences, common themes such as responsible use, data security, user protection, and human autonomy are emerging across the region.
Key Developments in AI Regulation
Recent developments in AI regulation across APAC are noteworthy, especially in light of the European Union Artificial Intelligence Act (EU AI Act), which will come into effect on August 1, 2024. This groundbreaking legislation is the world’s first comprehensive “hard” law on AI and covers the entire lifecycle of AI systems—from manufacturing and distribution to usage. Its broad extraterritorial reach affects anyone placing AI systems on the EU market or whose AI outputs are used within the EU. Consequently, the EU AI Act is anticipated to shape AI regulations in various APAC countries.
Impact on Businesses
APAC businesses must now assess how AI technology impacts their operations and establish governance frameworks to comply with legal and regulatory requirements. The widespread adoption of AI across industries affects business decisions, including mergers, acquisitions, investments, joint ventures, and procurement. Therefore, it is crucial for businesses to incorporate AI governance and compliance into their transaction management processes, conduct risk assessments, and address AI-related issues in their business arrangements.
Country-Specific Updates
India: While the Digital India Act, which is expected to include AI regulations, is still under development, a new AI advisory group has been formed. This group will create a framework to foster innovation in AI and prevent misuse. In March 2024, the Indian government also issued an Advisory on Due Diligence by Intermediaries/Platforms. This advisory requires platforms to prevent unlawful content from being published through AI and to clearly label AI-generated content, informing users of its potential inaccuracies.
Indonesia: The Deputy Minister of Communications and Informatics announced in March 2024 that AI regulations are in development and are expected to be implemented by the end of 2024. The regulations will likely focus on penalties for the misuse of AI, including violations related to personal data protection, copyright, and electronic information.
Japan: Japan is in the early stages of drafting the Basic Law for the Promotion of Responsible AI. The bill, anticipated to be finalized by the end of 2024, will likely focus on “specific AI foundational models” with significant social impact. It will address aspects such as accuracy, cybersecurity, and user disclosure. The framework also proposes collaboration with the private sector to implement standards.
Malaysia: Malaysia is working on an AI code of ethics for users, policymakers, and developers. This code will outline seven principles for responsible AI, emphasizing transparency, diversity in training data, and the evaluation of automated decisions to mitigate harmful outcomes. Currently, there are no plans for specific AI laws.
Singapore: Although Singapore has not announced AI-specific laws, it introduced the Model AI Governance Framework for Generative AI in May 2024. This framework provides best practice principles for the responsible development, deployment, and use of AI technology across the AI supply chain.
As AI regulations continue to evolve, businesses in APAC must stay informed and adapt their strategies to ensure compliance and mitigate risks associated with AI technology.