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Moscow Acts as Test-bed for Russian AI Regulation

Russia's New Law Encourages Implementation of Artificial Intelligence (AI) Technologies in Moscow

11 May 2020

Russia has adopted a new law (AI Law) establishing a special legal framework for the development and adoption of AI technologies in Moscow for the period from 1 July 2020 to 1 July 2025.

The AI Law defines AI as "a set of technological solutions that allow imitating a human's cognitive function (including self-learning and decision-making with no predefined algorithm) and … producing results at least comparable with results of a human's intellectual activity". AI technologies to which the AI Law applies include computer vision, natural language processing, speech recognition and synthesis, smart decision-making and other emerging AI methods.

The AI Framework will apply to legal entities and entrepreneurs registered in Moscow and included in a special public register maintained by Moscow authorities. Moscow authorities have also been authorised by the AI Law to introduce detailed regulations on the development, adoption and sale of AI technologies and AI-based products and services by Participants. Such regulations are yet to be adopted.

The AI Law sets out certain rules for the processing of anonymised personal data (APD) by Participants. In particular, Participants will need to enter into an APD processing agreement with Moscow authorities, will not be authorised to transfer APD to non-Participants, and will have to destroy APD if they cease to be Participants. At the same time, the AI Law allows Participants to process APD (including health-related APD) without the prior approval of a personal data subject.

It is expected that, following the five-year trial period in Moscow, the AI Law will serve as a basis for the future country-wide regulation of AI technologies in Russia.

Should you have any queries about the AI initiative described above, please contact the authors of this article or your usual Clifford Chance contacts.