Challenges of consumer protection regarding artificial intelligence

Abstract

Artificial intelligence has gained more significance in the past few years because of the advanced algorithms, increased data storage and computing power. On the contrary, the novelty has several disadvantages, such as lack of transparency or the possibility of data protection problems. Thereby, there is an urgent need to regulate it properly. As a result of the phenomenon, the European Commission has created a Proposal for a Regulation of the European Parliament and of the Council Laying Down Harmonised Rules on Artificial Intelligence and Amending Certain Union Legislative Act’ in order to protect EU citizens, consumers. The so-called ‘Artificial Intelligence Act’ highlights the importance of consumer protection, as it was established in a previous EU document, the White paper on Artificial Intelligence. This paper aims to examine the regulatory framework of AI on the level of the European Union and to describe the challenges of consumer protection in this new digital era.