Algorithmic Systems (ADM) and Artificial Intelligence (AI) have an increasing impact on decisions about consumers, for example via scoring procedures in the financial sector. AI-based recommender systems and voice assistants such as Alexa & Co increasingly influence consumer decisions.
Due to a lack of transparency, consumers are often suspicious of AI applications. It is difficult even for experts to determine whether the systems take wrong decisions or violate existing laws, for example with regard to discrimination or to the manipulation and deception of consumers.
Therefore, the European Commission will propose a regulatory framework for AI. However, the European Commission’s drafts presented so far fall short of consumers’ needs.
A European regulatory framework for AI must ensure that AI applications comply with EU legislation and are in line with European values. This would enhance consumers’ acceptance and their demand for AI technology.
- important AI decisions must be transparent and comprehensible for consumers
- independent experts and authorities must be able to check whether critical AI systems comply with the law
- the EU legal framework for algorithmic systems should follow a gradual risk-based approach
- the legal framework should introduce quality standards for profiling and automated decisions
- operators of AI systems must be obliged to prepare and publish a risk impact assessment