Scott Kosnoff and Andy Taylor Talk to Minnesota Lawyer About Rapidly Evolving AI Regulation Developments

Minnesota Lawyer turned to Faegre Drinker insurance partner and co-leader of the AI-X team Scott Kosnoff and business litigation associate and AI-X team member Andy Taylor for their insight on the most recent AI regulation developments and how they are counseling clients in light of them.

At the international level, the United Nations General Assembly has adopted a new resolution. “Governments around the world recognize the benefits and risks of AI, even if the specifics are not fully known,” said Taylor. “The U.N. resolution was sufficiently high-level and noncontroversial to achieve wide consensus. Unlike the internet, for which member states took a generally hands-off approach when it was in its early stages of development and adoption in the 1990s, passage of this resolution signifies that governments intend to be proactive in regulating AI. It remains to be seen whether the General Assembly can find consensus on more granular AI resolutions.”

At the federal level, Kosnoff shared that “we expect a steady stream of AI pronouncements from the federal government as a follow-up to the president’s AI executive order.” He noted that the Office of Management and Budget recently issued its final memorandum on the use of AI by federal agencies and departments and that the National Telecommunications and Information Administration issued a report on AI accountability that, “among other things, recommends that federal government suppliers, contractors, and grantees be required to ‘adopt sound AI governance and assurance practices for AI used in connection with the contract or grant, including using AI standards and risk management practices recognized by federal agencies, as applicable.’”

At the state level, Minnesota Lawyer reported that, so far, eight states have adopted the National Association of Insurance Commissioners’ model AI governance bulletin. “The bulletin provides states a flexible, non-prescriptive way to address insurers’ use of AI without having to enact legislation or adopt new regulations,” Kosnoff explained.