Key Takeaways
Advancements in AI are helping manufacturers automate tasks and collect data in many ways. Global and US regulations, such as the Colorado AI Act and California Privacy rules, are being put in place to make sure AI is deployed ethically. Understanding these regulations is important for compliance.
Ongoing advancements in AI in manufacturing have opened up opportunities for countless businesses, from automating repetitive tasks to collecting data. As AI matures, governments and organizations around the world are developing new rules and regulations to ensure ethical and responsible use of AI.
Understanding how these regulations impact your business is important to using AI effectively. To help you make sense of it all, I wanted to share how we think about AI regulations & rules in industrial manufacturing at Cognex.
Understanding AI rules: What are the regulations?
As AI technology gets integrated into more business operations, governments worldwide are creating regulations to address the associated risks. Here are some key types of regulations:
U.S. Regulations:
Federal Regulations:
- The White House Blueprint for an AI Bill of Rights lists five principles “to help guide the design, use and deployment of ‘automated systems.”
State Regulations:
- On May 17, 2024, Colorado enacted the first US AI legislation, the Colorado AI Act. The Act creates duties for developers and for those that deploy AI.
- California’s Consumer Privacy Act regulates, the use of automated decision-making tools.
- The California Privacy Protection Agency released draft rules about consumer notice, access and opt-out rights for automated decision-making technology.
Global Regulations:
Europe Regulations:
- The European Union's AI Act, which is being phased in through 2026, will set strict requirements for AI systems that are high-risk.
- The EU AI Liability Directive is in the works. It will detail how to handle civil liability and provide compensation for damage brought about by AI.
Asia Regulations:
- In Asia Pacific, the PRC put rules and regulations in place to make sure AI is being used responsibly, including 'deepfakes', generative AI, etc.
- In Mainland China the PRC and CAC released the GenAI measures which apply to any person that uses generative AI technology to provide services to Mainland China’s public.”
What are these regulations trying to achieve?
These regulations aim to build a solid framework for proper data handling and ethical practices, including:
- Protection of personal data and privacy: Safeguarding and ensuring the protection of personal information is important to prevent unauthorized access and misuse.
- Mitigating biases: Finding and reducing bias in data processing and decision-making systems helps AI-influenced results stay accurate and fair.
- Copyright protection: Showing respect for creators’ rights and licensing rights, by preventing unauthorized use and distribution of copyrighted material, helps protect ownership of innovative ideas.
While these goals may seem only tangentially related to many manufacturing applications of AI, they can raise important considerations.
How do these rules and regulations impact manufacturers?
Rules and regulations of AI in the manufacturing industry can have significant implications on businesses using third party AI products.
Regulations require transparency, accountability, and clarity about how AI systems make decisions. This means manufacturers need to be clear about AI’s role in their operations and provide safety nets against biases and errors.
Here’s how these rules can impact manufacturing businesses:
Bias in the manufacturing process: As the Danish Medicine Agency’s questionnaire for AI systems in drug manufacturing explains, “High bias can cause an algorithm to miss the relevant relations between features and target outputs (underfitting).” Put more simply, biased data yields bad results.
As a result, many things can go wrong if biases are introduced into the manufacturing process: inaccurate defect detection, unbalanced quality control (being stricter with certain standards but more lenient with others), imbalanced production rates, maintenance concerns, and even worker safety risks.
At Cognex we ensure that the data we use to power our AI models is free of biases, whether we build the datasets in-house or license them from third-party providers.
- Data privacy: AI systems typically need very big data sets, which can unintentionally include sensitive information if collected haphazardly. At Cognex, we ensure that our smart cameras do not collect any personally identifiable customer information (PII), and the data sets used to train our AIs are likewise free of personal information.
Understanding & complying with AI regulations in manufacturing
Understanding and integrating these rules into production can be overwhelming. Here are some suggestions on how to start effectively:
- Risk assessment: Analyze new AI systems thoroughly to identify potential risks. If you find any potential conflicts with relevant regulations, work with your vendors to understand and minimize those risks.
- Transparency and documentation: Create and maintain clear documentation of how your AI systems work, what data they use, and the outcomes they generate.
- Training and awareness: Ensure that operators and workers are properly informed regarding AI regulations and ethical practices. Regular training can help operators understand how to use AI while following the proper procedures.
- Get advice from legal experts: Since AI rules and regulations can be complex and are continually changing, it’s best to consult with AI law specialists who can help navigate the legalities.
Solutions to compliance with AI rules and regulations
It’s clear that AI-powered vision systems can help manufacturers meet production goals and regulation requirements. By integrating this technology in accordance with today’s rules, manufacturers can safely automate their operations, reduce the risk of non-compliance, and maintain high quality production.
Here at Cognex, we make sure that our cutting-edge solutions are aligned with current AI regulations. Our AI-powered Vision Pro Deep Learning software products, for example, provide power and protection while using bias-free, privacy-compliant data sets.
By understanding and adhering to AI regulations, businesses can harness the power of AI responsibly and ethically, while building trust, authenticity, and credibility.