Regulatory Alert : The Organisation For Economic Co-operation And Development (OECD) Council Recommendation On Artificial Intelligence (AI)

• Published date: 27 March 2024
• Subject Matter: Technology, New Technology
• Law Firm: Anggraeni and Partners
• Author: Ms Setyawati Fitrianggraeni, Sri Purnama and Jericho Xafier Ralf

BACKGROUND

The Organisation for Economic Co-operation and Development (OECD)² Council Recommendation on Artificial Intelligence (AI), first adopted in May 2019 and revised in November 2023, establishes an international standard on AI.³ It aims to foster innovation and trust in AI, ensuring respect for human rights and democratic values. The recent revision updates the definition of an "AI System" to stay aligned with technological advancements, including generative AI systems.

KEY REQUIREMENTS

The OECD Council's Recommendation on Artificial Intelligence encompasses comprehensive guidelines detailing fundamental principles and policy recommendations to govern AI systems globally. These include:

1. Inclusive Growth, Sustainable Development, and Well-being: This principle advocates for AI to drive broad-based growth, integrate sustainable development goals, and foster well-being. It highlights the importance of AI in enhancing productivity and economic gains while mitigating inequality and environmental impact.⁴
2. Human-Centred Values and Fairness: This aspect emphasises respect for human rights, democratic values, and diversity. It underlines the need for AI systems to be fair and non-discriminatory, recognise and correct biases, and ensure that AI applications respect human dignity and privacy rights.⁵
3. Transparency and Explainability: It is crucial that AI systems are transparent and that humans can understand their operations This principle stresses the need for clear communication about AI systems' capabilities and limitations, ensuring people can understand and challenge AI-driven decisions.⁶
4. Robustness, Security, and Safety: This principle requires AI systems to function reliably, be resilient to vulnerabilities, and be safe throughout their lifecycle. It mandates that AI systems should be secure against unauthorised access and malicious use and safe regarding their impact on people and the environment.⁷
5. Accountability: The Recommendation calls for clear accountability frameworks for AI systems. This involves defining responsibilities for AI developers, deployers, and operators ensuring they can be held accountable for the functioning and impact of AI systems.⁸

Furthermore, the Recommendation urges governments to adopt national policies and foster international cooperation.⁹ This includes promoting AI research and development, nurturing a conducive digital ecosystem, crafting policies that enable AI innovation while safeguarding public interests, and...