The entry into force of the Regulation of the European Parliament and of the Council Establishing Harmonized Legislation on Artificial Intelligence – the so-called “AI Act.
AI Act – represents the first attempt to legally regulate the operation of artificial intelligence systems.
In practice, however, the act raises a number of controversies concerning, among other things.
copyright law, liability for damages caused by AI, but also the processing of personal data.
Does the AI legislation change the rules for processing personal data?

Basic information on the implementation of RODO and AI into the legal order

The EU legislature has adopted a completely different strategy for the requirements to be met by an entity covered by the AI Act and RODO.
The former requires the implementation of different types of standards and mechanisms regarding, among other things:

• risk management;
• data management;
• technical documentation;
• transparency obligations;
• impact assessment on fundamental rights.

However, it is important to realize that the AI ACT itself does not grant users any rights (interestingly, the AILD, which has not yet been enacted, does so).

In the case of the RODO, this is quite different, as the regulation does not indicate exactly what needs to be done, but specifies the result to be achieved.
This result is primarily to secure data protection and enable data subjects to exercise their rights.

Which artificial intelligence systems are addressed by the RODO and which by the AI Act?

A new EU law covering AI concerns the application of artificial intelligence.
However, it is important to note that the regulation primarily refers to high-risk artificial intelligence (AI) systems. high-risk AI).
Oznacza to, że do tych systemów stosuje się równolegle akt o sztucznej inteligencji oraz RODO.
Do pozostałych osiągnięć nowych technologii stosuje się wyłącznie RODO.

AI Act versus the General Data Protection Regulation.
How to apply them simultaneously?

First of all, it is worth noting the wording of paragraph 1.2 of the AI Act’s Preamble.
In it, the EU legislator indicated that the AI Act regulation does not in any way violate the RODO 2016/679 regulation.
This means that the two legal acts operate on the same level complementing each other.

AI developers, as well as system providers and operators, are subject to exactly the same data processing rules as all other market participants.
It can be said that risk management in the design and use of AI systems must take into account both the grounds that legalize the processing of personal data and the rules for managing it.

In practice, therefore, some AI-based systems must comply with both regimes of standards – the AI Act and RODO.
Część z nich będzie się pokrywała, np. ograniczenia w zakresie zautomatyzowanego przetwarzania danych osobowych i wykorzystanie modeli sztucznej inteligencji, które bazują na podprogowej ingerencji w zachowanie osób fizycznych.

However, this doesn’t always have to be the case, so the use of artificial intelligence should be preceded by an audit of both AI Act and RODO regulations.

How to train generative artificial intelligence models in compliance with RODO?

Currently, tools based on generative artificial intelligence are very popular.
This can include, among others.
Chat GPT, Dall-E, Google Bard or Jasper, among others.
Their common denominator is that in order to use AI, it is necessary to “train” it, i.e. provide resources and modify parameters to obtain the most accurate results.

Currently, regulators involved in the personal data sector have not developed a unified position on whether such AI can process users’ personal data for development purposes.
A good example is the ruling of the Italian GPDP, which held that it is permissible for a personal data controller to invoke the legitimate interest rationale (Article 6(1)(f) of the RODO).

It can be expected that in order to avoid ambiguity and the risk of a severe sanction, the designers of artificial intelligence tools in the future will introduce the possibility of to withdraw consent or object by the user to the use of his/her personal data, provided that the functionality of the software is affected.

Why is the implementation of the AI Act and RODO so important?

Leaving aside the risk of hefty fines associated with ignoring EU regulations, both AI Act solutions and the RODO regulation create compliance obligations on the part of businesses. Meeting the requirements indicated in the legal standards guarantees the conduct of business in accordance with the law.

In both cases, it is worth remembering that compliance audits should be conducted periodically and repeated each time new solutions are implemented that modify existing processes.

Who will be in charge of evaluating the use of artificial intelligence?

Compliance of AI tools and personal data processing rules will be under the same regulatory authority in Poland (as probably in other EU countries).
Expanding the competencies of the Office for Personal Data Protection will make it possible for entrepreneurs to be controlled on two levels in parallel.

Doubts and legal problems with artificial intelligence are increasing the risk of a chilling effect among system manufacturers fearing heavy sanctions for failing to meet the new requirements, or for failing to properly integrate an AI system with RODO regulations.

Responsible risk management and the provision of tools that are not only effective, but also work in accordance with the RODO and AI Act requires the support of professionals.
We invite both entities involved in AI design and entrepreneurs who use them to work with us.
Our law firm specializes in new technology law and offers comprehensive support in this area.

Meta title: AI Act and RODO.
Can these regulations be applied simultaneously?

Meta description: Artificial intelligence is increasingly being used in business.
Reconciling the AI Act and RODO, however, raises many questions.
How to apply them?

Link to analysis in Contad:https://app.contadu.com/analysis/content-preview/385ef5ad810f6143/0f1754f68d5585e9d8d6e1ef48ea6dd15d3

Why do mergers and acquisitions happen and how can a law firm help you?

The M&A market in Emerging Europe is growing quite rapidly.
In 2023 alone, nearly 1,200 M&A (merger and acquisition) transactions have been recorded. Mergers and Acquisitions).
Co sprawia, że przedsiębiorcy decydują się na fuzję przedsiębiorstw lub przejęcie firmy?
Czy warto decydować się na wsparcie kancelarii prawnej?

What are mergers and acquisitions in business law?

Structural changes within companies are one way to strengthen a company’s market position.
The assets of all merging companies accumulate, allowing for more extensive investments.

In practice, M&A transactions can be planned in one of two ways:

• The merger of two or more companies to form a new company;
• The takeover of a weaker market participant by a stronger one, to whom the assets of all the merging entities pass.

A merger can occur through an acquisition or the formation of a new company, while a takeover, understood literally, seeks to annex an entity through the purchase of shares.

Although theoretically the rules for carrying out mergers and acquisitions are regulated by the Commercial Companies Code, in practice each such transaction looks quite different.
The terms of the transaction are set individually, and the effectiveness of the entire process depends on correctly identifying the specifications of the operation.
That is why it is so important, among other things.
A thorough due diligence (possibly vendor due diligence, depending on who will initiate the merger).

What can a company gain from a merger or acquisition?

Mergers and acquisitions of companies bring many benefits – provided they are carefully planned and properly executed.
What are the most common motives behind M&A decisions?

• Aiming to increase the reach of the business conducted and strengthen the market position

Merging two companies operating in the same industry allows for faster expansion and reaching new customer segments and markets.
Restructuring also helps better defend against the actions of unfair competition and increases the entity’s resilience to market fluctuations.

• Strive to increase liquidity

Increasing the scale of operations contributes to an increase in the value of an enterprise.
As a result, it is easier to implement new business initiatives or obtain financing on favorable terms.
A new entity can earn a higher return on its operations while reducing margins and fees.

• Simplifying the business structure

The merger of several entities into one results in increased management efficiency, as it eliminates the links between full-fledged market participants.
The fewer these ties, the easier it is to manage the company and model it to the needs of investors.

• Faster development

M&A transactions also promote technological development.
Through the passage of trademarks, industrial designs, patents or copyrights, the portfolio of products and services offered can be expanded.
This, in turn, makes business more competitive.

How does the M&A transaction process work step by step?

Investors are often interested in the course of M&A.
However, years of practice show that there is no single recipe for restructuring.
However, it is possible to isolate a kind of algorithm of action that will look similar in each case.

Stage one – the preparatory phase

Each transaction begins by determining whether the operation is to involve all of the company’s assets, or perhaps only a portion of the company.
The seller also decides whether to:

• share deal – that is, the sale of shares in a company;
• asset deal – that is, the transfer of company assets.

Stage two – due diligence investigation

Due diligence plays a critical role in the merger or acquisition process.
Before companies decide to voluntarily merge or an acquisition takes place, the parties to the transaction should conduct an audit of the legal and business risks associated with the planned operation.

Stage three – negotiation and contract signing

Before a deal is signed, the parties negotiate its terms, working out the best strategy to follow.
Even the biggest deal can be doomed by a simple mistake, which is why using professional help at each stage of M&A is important from the very beginning.

Stage four – contract execution

The implementation of M&A is not only the sale of shares or stocks.
Sometimes it will be necessary to obtain the approval of the antitrust authority for the acquisition of control, the transfer of specific assets (e.g., real estate, business, IP rights), or the consent of majority shareholders or corporate bodies.

Stage five – integration of business cultures

It is not enough to merge two companies together for them to start operating smoothly. It is essential to have the so-called. PMI (Ang. Post-Merger Integration). It aims to merge the business by linking together the management sphere and individual departments, such as marketing, IT, production or finance, and ensure that business processes run smoothly.

How does our law firm support companies in M&A?

It is worth remembering that the acquisition of one company by another is not mathematics, and it does not come down to the fact that the value of the shares of the new company is added to the assets of the existing one.Specialists who deal with M&A processes on a daily basis talk about the the synergy effect. It’s a situation where two businesses combined will produce an effect greater than each would have separately. A wisely conducted M&A provides just this surplus – otherwise it will be just a simple transfer of assets.

The law firm Marszałek & Partners provides its clients with comprehensive assistance that translates into increased value for their business. Get support from experienced advisors who will conduct a financial and legal analysis and guide your company through it step by step.

Meta title: corporate mergers and acquisitions in business law. What is worth knowing about them?

Meta description: corporate mergers or acquisitions in commercial law – what are M&A transactions, how are they conducted and what is the role of a law firm in them?Link to analysis in Contad:https://app.contadu.com/analysis/content-preview/5989e20cadbc9b61/f8ffd92020f34945479066ffda89d1825d3