Seoul: South Korea began enforcing what it calls the world's first comprehensive set of laws regulating artificial intelligence (AI) on Thursday, aiming to boost trust and security in the industry. However, startups have expressed concerns that the regulations could hinder their growth.
According to Thai News Agency, the South Korean government expects the Artificial Intelligence Basic Act to propel the country to become a leader in this field. Its enactment comes faster than similar efforts in Europe, where the European Union's AI Act is scheduled for phased implementation until 2027.
Countries around the world continue to have differing opinions on regulating AI. The United States emphasizes a more flexible approach to avoid stifling innovation, while China has begun implementing some regulations and proposed the establishment of an organization to coordinate global regulations.
A key feature of this South Korean law is the requirement that companies ensure human oversight of "high-impact" AI applications, encompassing nuclear safety, drinking water production, transportation, healthcare, and financial sector uses such as credit assessment and loan screening.
In addition, other regulations require companies to inform users in advance about products or services that use generative or high-impact AI, and to clearly identify the source when the AI output is difficult to distinguish from reality.
South Korea's Ministry of Science and Information and Communication Technology stated that the legal framework is designed to promote the adoption of AI while building a foundation of security and trust. The draft law was developed after extensive discussions, and businesses will be granted a grace period of at least one year before the government begins imposing administrative penalties on violators.
The penalties can be severe; for example, failing to disclose the source of generative AI could result in a fine of up to 30 million won (approximately US$20,400 or around 755,000 baht) for a company.
Science Minister Bae Kyung-hoon, a former head of AI research at LG, said at a press conference that the law would be a "crucial institutional foundation" for South Korea's ambition to become one of the world's top three AI powerhouses.
However, Im Jung-wook, co-director of Startup Alliance, South Korea's startup alliance, said many business founders are dissatisfied that key details remain unclear and questioned why South Korea had to be the first to implement this law. Researchers in the group noted that the language of the law is ambiguous, which may cause companies to opt for the safest approach to avoid legal risks, potentially negatively impacting innovation.