AS artificial intelligence (AI) continues to permeate various industries, including healthcare, transportation, finance, and law enforcement, governments worldwide are striving to establish frameworks that promote the responsible and ethical advancement of AI technologies.
Notably, the European Union’s (EU) AI Act, introduced in 2021, represents one of the most thorough efforts to regulate AI, focusing on mitigating the risks linked to its implementation while encouraging innovation.
For nations such as Malaysia, which are progressively investing in AI technologies, the EU AI Act serves as a significant reference point for formulating a comprehensive AI safety framework.
Overview of the EU AI Act
The EU AI Act marks the first comprehensive regulatory framework for AI introduced by a major economy.
This legislation categorises AI systems based on their risk levels, which include unacceptable, high-risk, and low-risk classifications. Consequently, it establishes different levels of regulatory scrutiny corresponding to each category.
A primary aim of the Act is to ensure that high-risk AI systems adhere to rigorous standards, which encompass transparency, accountability, and traceability.
Additionally, by delineating explicit rules and guidelines, the Act encourages innovation in AI while simultaneously addressing potential risks.
Furthermore, the Act seeks to protect individuals’ rights and freedoms, including privacy and the principle of non-discrimination while advocating for ethical practices in AI development.
It incorporates measures related to transparency, human oversight, data governance, and accountability, particularly for high-risk AI systems.
These aspects hold significant relevance for Malaysia as it confronts the challenges associated with AI advancement.
Adapting the EU AI Act for Malaysia’s AI safety framework
Malaysia, characterised by its rapid economic growth and increasing investments in AI, is strategically positioned to implement a safety and governance framework modelled after the EU AI Act.
Nonetheless, it is essential for Malaysia to tailor these principles to fit its distinct social, political, and economic landscape. The following outlines several strategies through which Malaysia can utilise the EU AI Act as a reference for developing its own AI safety framework.
The EU AI Act employs a risk-based methodology, classifying AI systems into categories of unacceptable risk, high risk, and low risk.
By adopting a comparable framework, Malaysia would enable regulators to concentrate their efforts on the AI systems that pose the greatest potential harm while simultaneously fostering innovation in areas deemed less risky.
To initiate this process, Malaysia could identify high-risk sectors such as healthcare, law enforcement, and finance, subsequently establishing stringent guidelines tailored to these industries.
In Malaysia, the application of AI within the healthcare sector is becoming increasingly prevalent, particularly in areas such as medical diagnostics, patient monitoring, and drug discovery.
While these technologies present considerable potential, they also carry inherent risks, particularly in instances of failure or erroneous recommendations.
By categorising healthcare AI as high-risk, Malaysia could mandate rigorous testing protocols, ensure transparency in decision-making processes, and implement human oversight, akin to the regulatory framework established by the EU.
The EU AI Act underscores the necessity of transparency and explainability for high-risk AI systems, which is vital for enabling individuals to comprehend the rationale behind AI-generated decisions.
This is especially pertinent in critical sectors such as finance, healthcare, and law enforcement.
Malaysia could adopt similar principles by obligating AI developers to furnish comprehensive documentation detailing the underlying logic, decision-making frameworks, and data utilised by their AI systems.
In the context of public administration and financial services in Malaysia, it is essential for consumers and citizens to grasp how decisions that impact them are formulated.
To enhance trust and accountability in AI technologies, Malaysia could require AI providers to present easily accessible information regarding their systems, including the models, datasets, and algorithms employed in the decision-making process.
A fundamental component of the EU AI Act is the implementation of robust data governance protocols, particularly concerning high-risk AI systems.
The accuracy, impartiality, and security of data utilised by AI systems are essential for ensuring their fairness and accountability. For Malaysia, the adoption of data protection regulations that are consistent with the EU’s General Data Protection Regulation (GDPR) could alleviate challenges such as data privacy infringements and algorithmic bias.
The Personal Data Protection Act (PDPA) serves as a foundational framework for data governance in Malaysia.
By aligning with the principles of the EU AI Act, Malaysia can enhance its data protection policies, mandating that AI developers uphold the integrity of personal data employed in AI systems and avert discriminatory practices.
For instance, AI algorithms utilised in credit assessments or recruitment processes should undergo evaluations for bias and fairness.
The EU AI Act stipulates the necessity of human oversight for high-risk AI systems, ensuring that AI-generated decisions can be reviewed or overridden by human operators.
Malaysia could implement similar requirements, making it essential for AI systems, especially in critical areas such as healthcare, law enforcement, and public administration, to incorporate human oversight mechanisms.
In the context of AI-driven medical diagnostics, the principles outlined in the Act could assist Malaysia in ensuring that human medical professionals remain integral to the decision-making process, especially in high-stakes scenarios.
Likewise, AI applications in law enforcement, such as facial recognition or predictive policing, should be subject to human intervention to prevent potential misuse and uphold fairness. – Dec 31, 2024
R. Paneir Selvam is the principal consultant of Arunachala Research & Consultancy Sdn Bhd (ARRESCON), a think tank specialising on strategic national and geo-political matters.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image: Arquimea
