Lupo Quoted on EU AI Act and Worldwide Impact to Fashion Brands

Vogue Business
Fashion & Retail Law Industry Leader and Chairman Anthony Lupo was quoted on impact of the European Union’s (EU) landmark Artificial Intelligence (AI) Act on fashion retailers across Europe and beyond.

Tony said that many brands are already using AI technology, which would categorize them as a “deployer” under the Act, rather than “providers.”

Under the Act, deployers are “any natural or legal person, public authority, agency or other body using an AI system under its authority …” Deployers have a variety of obligations, including assigning human oversight to AI and keeping logs automatically generated by an AI system.

Tony said that the “devil will be in the details.” Brands must ensure their obligations as deployers are met to avoid facing hefty consequences under the penalty provision, which allows heavy fines to for non-compliance.

“One of the big issues with the Act is the penalty provision,” Tony said. “I understand why there could be massive penalties, but there’s so much room for things to go wrong that are not material per se — that’s where I’m most concerned, and [brands] have to be careful in the adoption of this.”

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