Enhancing AI Regulations: What the Recent Executive Order Means for Retailers

In an era driven by technological advancements, artificial intelligence (AI) has become a pivotal player in various industries, including retail. However, the rapid growth of AI has raised concerns about safety, security, privacy, and ethical considerations. To address these concerns, President Biden recently issued an Executive Order that sets new standards and guidelines for AI, significantly impacting retailers who leverage AI in their operations.

Let's delve into the key aspects of this executive order and discuss its implications for retailers using AI.

1. New Standards for AI Safety and Security

The executive order mandates that developers of potential AI systems share safety test results and critical information with the U.S. government. This measure is aimed at ensuring that AI systems are safe, secure, and trustworthy, with a particular focus on critical infrastructure sectors.

For retailers, this means that when implementing AI solutions in their operations, they need to adhere to rigorous safety and security standards. The responsibility is on them to work with AI developers and vendors who can meet these standards.

2. Protecting Against AI-Enabled Risks

One of the critical areas addressed by the executive order is the development of robust standards to screen and mitigate the risks associated with using AI for potentially dangerous purposes. Additionally, guidelines will be established to detect AI-generated content and ensure the authenticity of official content.

Retailers who utilize AI-powered tools must be vigilant when it comes to AI-generated content. The verification and authenticity of product information and marketing materials are paramount. Adhering to these guidelines will not only protect consumers but also help retailers build trust in their AI-driven offerings.

3. Privacy Protection

Privacy in the age of AI is a growing concern, and the executive order places a strong emphasis on protecting Americans' privacy. Privacy-preserving techniques and research will be promoted, and guidelines will be developed to assess the effectiveness of these techniques.

Retailers who collect and use consumer data for immersive shopping experiences need to be acutely aware of privacy regulations. Implementing robust privacy-preserving techniques and complying with guidelines will be essential to avoid legal issues and maintain trust with customers.

4. Consumer Protection

Consumer protection remains a top priority, with the executive order focusing on safeguarding consumers from potential harms while promoting the benefits of AI. 

Retailers leveraging AI to enhance customer experiences should ensure that AI-driven solutions meet safety and ethical standards. This will help provide consumers with reliable and beneficial AI applications.

5. Promoting Innovation and Competition

The executive order emphasizes the importance of maintaining leadership in AI innovation. It encourages AI research, supports small developers and entrepreneurs, and aims to attract AI talent to the United States.

For retailers, this means the continued potential for innovation in AI-driven e-commerce experiences. 

So, how can retailers navigate these evolving AI regulations and ensure they are in compliance? One solution is to place the liability on verified vendors who can manage AI-related legal concerns.

Tangiblee: Ensuring Responsible AI 

Tangiblee, a leader in AI-driven e-commerce experiences, takes a proactive approach to AI liability. To safeguard retailers, Tangiblee refrains from collecting Personal Identifiable Information (PII) when possible. When collecting PII is unavoidable, Tangiblee ensures that clear user consent is granted prior to collecting it, and that it is stored according to all rules and regulations in place. Tangiblee complies with GDPR and CCPA, alongside EU servers to guarantee proper processing and storage of PII. 

Additionally, Tangiblee is designed to operate without cookies with minimal implications on the user experience while prioritizing user privacy. Tangiblee can comply with any cookie policy defined by retailers to ensure it matches the users’ preferred levels of cookie privacy. 

Furthermore, Tangiblee is ADA compliant with multiple audits via 3rd parties for verification. Emphasizing security as a paramount concern, Tangiblee conducts penetration tests and engages in third-party security audits. 

By partnering with verified vendors like Tangiblee, retailers can have confidence that their AI solutions meet the highest standards of safety, security, and privacy. This not only protects the retailer but also fosters trust and confidence among consumers.

In conclusion, the recent executive order on AI safety and security presents both challenges and opportunities for retailers. While there are increased legal and regulatory requirements, retailers can navigate these challenges effectively by working with trustworthy AI vendors and staying abreast of evolving standards. By taking the right steps, retailers can continue to leverage AI for innovation and improved customer experiences while ensuring legal compliance and customer trust.

Sources: In the spirit of the new Executive Order, the summary of the order was created with the help of ChatGPT. Original source.

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