By Damian Martinez, journalist at G&M News.
Recently, the European Parliament approved the Artificial Intelligence Act that ensures safety and compliance with fundamental rights, while boosting innovation. The regulation, agreed in negotiations with member states in December 2023, was endorsed by Members of the European Parliament (MEPs), with 523 votes in favor, 46 against and 49 abstentions.
The regulation establishes obligations for Artificial Intelligence (AI) based on its potential risks and level of impact. The new rules ban certain AI applications that threaten citizens’ rights, including biometric categorization systems based on sensitive characteristics and untargeted scraping of facial images from the Internet or CCTV footage to create facial recognition databases. Emotion recognition in the workplace and schools, social scoring, predictive policing (when it is based solely on profiling a person or assessing their characteristics), and AI that manipulates human behavior or exploits people’s vulnerabilities will also be forbidden.
HIGH-RISK AI SYSTEMS
The use of biometric identification systems (RBI) by law enforcement is prohibited in principle, except in exhaustively listed and narrowly defined situations. “Real-time” RBI can only be deployed if strict safeguards are met, for example, its use is limited in time and geographic scope and subject to specific prior judicial or administrative authorization. Such uses may include a targeted search of a missing person or preventing a terrorist attack. Using such systems post-facto (“post-remote RBI”) is considered a high-risk case, requiring judicial authorization being linked to a criminal offense.
Clear obligations are also foreseen for other high-risk AI systems (due to their significant potential harm to health, safety, fundamental rights, environment, democracy, and the rule of law). Examples of high-risk AI uses include critical infrastructure, education and vocational training, employment, essential private and public services (like healthcare or banking), certain systems in law enforcement, migration and border management, justice, and democratic processes (like influencing elections). Such systems must assess and reduce risks, maintain use logs, be transparent and accurate, and ensure human oversight. Citizens will have a right to submit complaints about AI systems and receive explanations on decisions based on high-risk AI systems that affect their rights.
GPAI MODELS TO CONSIDER
General-purpose AI (GPAI) systems, and the GPAI models they are based on, must meet certain transparency requirements, including compliance with EU copyright law and publishing detailed summaries of the content used for training. Some powerful GPAI models that could pose systemic risks will face additional requirements, like performing model evaluations, assessing, and mitigating systemic risks, and reporting on incidents.
The regulation will enter into force twenty days after its publication in the official European Parliament Journal, and be fully applicable 24 months after its entry into force, except for: bans on prohibited practices, which will apply six months after the entry into force date; codes of practice (nine months after entry into force); general-purpose AI rules including governance (12 months after entry into force), and obligations for high-risk systems (36 months).
IMPLICATIONS FOR THE CASINO INDUSTRY
While the AI Act has broad implications across various sectors, let’s delve into its specific impact on the casino industry. AI-powered personalization is set to transform the way casinos engage with their patrons. AI algorithms analyze player behavior, preferences, and playing patterns. By understanding individual preferences, casinos can tailor game recommendations and promotions. For instance, if a player enjoys slot machines with adventure themes, the AI system can suggest similar games.
Moreover, players receive a more seamless and enjoyable gaming experience. Instead of sifting through an overwhelming array of games, they are presented with options closely aligned with their interests. This not only enhances satisfaction, but also encourages longer play sessions.
BENEFITS AND RESPONSIBILITIES
On the other hand, AI revolutionizes marketing efforts within the casino industry. The technology identifies popular games and underperforming machines. Casinos can allocate resources effectively by promoting the most engaging games and optimizing floor layouts. Also, AI-driven marketing campaigns deliver personalized offers to players. Whether it’s a welcome bonus, free spins, or exclusive rewards, the system defines promotions based on individual preferences and playing history.
In terms of security, AI plays a crucial role in preventing fraud. Machine learning algorithms monitor betting patterns and detect anomalies. Unusual behavior, such as sudden large bets or irregular wagering, triggers alerts for further investigation. AI systems excel at identifying fraudulent activities. Whether it’s card counting, collusion, or identity theft, the technology safeguards sensitive data and maintains the integrity of casino operations.
While the benefits are evident, responsible AI deployment is essential. Casinos must navigate ethical dilemmas related to player privacy, consent, and fairness. Transparency in AI decision-making processes is crucial. Moreover, AI models should be trained to minimize biases. Fairness and inclusivity are paramount, especially when dealing with diverse player demographics.