The recent introduction of the AI Act in the European Union marks a significant development in the regulatory landscape for artificial intelligence, particularly in relation to consumer protection. Lead author Dimitrios Devetzis from Frederick University, Nicosia, Cyprus, discusses how this legislation does not create new regulations but rather enhances existing frameworks that govern consumer rights within the digital economy.
According to Devetzis, “The AI Act sheds light on pre-existing vague legal concepts,” indicating that it aims to clarify ambiguities that have long hindered consumer protection efforts. This clarity is crucial for industries, including the energy sector, where technology and consumer interactions are rapidly evolving. The AI Act reinforces existing legal concepts, thereby providing a more solid foundation for businesses to operate within, especially as they integrate AI technologies into their services.
For energy companies, this means that while they must adhere to established consumer protection laws, the AI Act offers a clearer pathway for compliance when deploying AI-driven solutions. For instance, energy providers using AI for demand forecasting or customer service can now better understand their obligations regarding data accuracy and product safety. Devetzis emphasizes that the act “promotes a better understanding of traditional notions of law applicable to the modern digital reality,” which could lead to increased trust from consumers as they engage with AI-enhanced energy services.
The commercial implications are significant. By aligning their practices with the clarified legal framework, energy companies can mitigate risks associated with consumer complaints or regulatory scrutiny. Furthermore, the enhanced legal certainty can foster innovation, as businesses may feel more empowered to invest in AI technologies knowing that they have a clearer understanding of their legal responsibilities.
In summary, the AI Act serves as a vital tool for consumer protection in the digital age, particularly for sectors like energy that are increasingly reliant on AI. As noted in the article published in ‘Perspectives of Law and Public Administration,’ the act’s true value lies not in creating new rights but in facilitating the implementation of existing ones, ultimately benefiting both consumers and businesses alike.
