Virtually Everything | Series 2, Episode 3 | Understanding AI Regulations: EU AI Act, Global Implications, and Crypto Litigation

The latest episode of Virtually Everything sees our hosts Lucy and Vyasna discuss the evolving landscape of AI regulation with special guest Rebecca Keating, a barrister at 4 Pump Court. With a background in technology disputes spanning areas like IT project failures, cyber-attacks, and emerging technologies such as quantum computing and crypto assets, Rebecca offers a unique legal perspective on the regulatory frameworks governing artificial intelligence.

The conversation kicks off with an exploration of the recently adopted EU AI Act, which Rebecca explains is a groundbreaking piece of legislation designed to regulate AI systems based on their perceived risk levels. She outlines how the Act categorises AI systems into four tiers—unacceptable, high, limited, and minimal risk—each with different compliance requirements. The most stringent regulations target high-risk AI systems that pose significant risks to health, safety, or fundamental rights. Rebecca also discusses prohibited AI systems, such as those using subliminal techniques or real-time biometric identification in public spaces for law enforcement.

One of the key highlights is the Act’s extraterritorial reach, which means that non-EU companies could also be affected if their AI systems are marketed or used within the EU. Rebecca emphasises the importance for global businesses to understand the obligations they may face, particularly regarding transparency, compliance, and risk management, which could require adjustments in their contracts with developers and providers.

The discussion then broadens to examine how different jurisdictions are approaching AI regulation. While the EU has taken a more proactive and structured approach with the AI Act, Rebecca points out that the UK, for now, has adopted a more permissive “wait and see” strategy. However, she notes that UK political developments, such as potential Labour-led reforms, could bring about a shift toward more rigid AI regulations in line with the EU.

To round off the episode, Rebecca provides an update on the high-profile litigation surrounding Dr. Craig Wright, who claims to be Satoshi Nakamoto, the anonymous creator of Bitcoin. She discusses the recent ruling in the UK’s COPA trial, where the court found that Dr. Wright was not Satoshi Nakamoto, and how this decision has led to the discontinuation of several related legal actions. Despite this, Rebecca underscores that the case still raised intriguing legal questions, particularly concerning fiduciary duties owed by software developers in the crypto space—issues that could appear in future litigation.

This podcast forms part of the Virtually Everything podcast series. To find out more about the topics discussed in the series, please visit our dedicated Digital Assets and Blockchain page.