Do You Need to Comply with Laws When Implementing AI?
Do You Need to Comply with Laws When Implementing AI?
1. Why are legal issues important in AI implementation?
AI can make decisions that directly affect people, such as approving loans, filtering job applications, or assisting in medical diagnoses. Without clear legal frameworks, these AI systems can easily spark controversy, violate individual rights, and result in legal consequences for businesses.
2. Legal risks when implementing AI without proper control
Common legal risks include:
- Violating user privacy by collecting data without consent
- Discrimination caused by algorithms trained on biased data
- Lack of transparency when AI makes decisions that cannot be explained
- Absence of oversight mechanisms, preventing effective response to incidents
These factors can lead to lawsuits, reputational damage, or administrative penalties.
3. Legal regulations related to AI in Vietnam
Although Vietnam has not yet enacted a dedicated AI law, several current laws significantly affect AI applications, including:
- Cybersecurity Law 2018: Regulates data processing on cyberspace
- Law on Consumer Protection 2023: Includes AI-related provisions
- Decree 13/2023/NĐ-CP: On personal data protection, effective from July 1, 2023
Businesses should pay special attention to requirements for consent and notification when collecting and processing personal data via AI systems.
4. International standards and legal frameworks
For businesses operating across borders or using solutions from international partners, consider the following legal frameworks:
- GDPR (EU): Strict regulations on personal data protection
- OECD AI Principles: Guidelines for responsible AI development
- ISO/IEC 42001: The first standardized AI management system (2023)
Complying with international standards helps mitigate risks and strengthens credibility in global collaborations.
5. Data privacy and personal data protection laws
AI heavily relies on data, especially personal data. Therefore, businesses must comply with:
- Transparency and consent principles in data collection
- Using data only for declared purposes
- Not sharing data with third parties without consent
- Securing data with appropriate technical and organizational measures
Vietnam’s Decree 13 and the EU’s GDPR both require organizations with high-risk systems to appoint a Data Protection Officer (DPO).
6. Legal liability in AI: Who is responsible for mistakes?
One major challenge is determining liability when an AI system causes harm. Responsibility may lie with:
- The algorithm developer
- The business implementing AI
- The data provider
Clearly defining roles, responsibilities, and response processes is crucial to avoid prolonged legal risks.
7. Recommendations for businesses when implementing AI
- Start with a Legal Impact Assessment (LIA)
- Establish clear and transparent AI governance policies
- Consult legal experts or technology law advisors
- Regularly audit and review AI systems in operation
- Ensure staff are well-informed about legal regulations related to AI and data
8. Conclusion
AI implementation is not just a technical issue—it’s also a legal one. Businesses should treat compliance as part of their long-term strategic roadmap. As domestic and international legal frameworks evolve, investing in compliance from the start helps ensure safer, more sustainable AI adoption.