Privacy Talk with Lior Etgar, Partner at Erdinast, Ben Nathan, Toledano & Co: What do new tech companies have to consider amid AI, data protection and privacy from a legal perspective to succeed their business?
“This interview has been recorded on 5th August 2024 and discusses privacy and data protection legislation in Israel”
- How can we prevent the media manipulation?
- What do new tech companies have to consider amid AI, data protection and privacy from a legal perspective to succeed their business?
- Message to listeners
- How can we prevent the media manipulation?
Lior: And are you referring to manipulation in social media?
Kohei: Yeah, that’s the important in this scene, in like wartime, that happens actually, in nine months ago, we see that some of the news outlet that’s been arising some of the questions so but any of the legal answers from the perspective or just struggling how we can solve the problem.
Lior: I think that first of all, regulators handle this issue in a good manner. I think globally, there are, if you’re talking, for example, about chatbots or fake files in social media. I think that the big, big tech companies look at Twitter, maybe 40 or 50% of the profiles are fake.
They have a very good interest, a very good business interest to keep it because it provides traction. It provides a lot of income to companies that are taking social media campaigns, and now we can talk about billions of dollars that are invested in social media campaigns by all sorts of stakeholders from commercial companies to political entities, the you know, even hostile entities as well.
So eventually this is something that the big tech companies will never, I think, my belief they will never make a good treatment in this issue will have to come from the top, from you know, from regulators and lawmakers.
I think that the EU did a very, very interesting thing with the EU AI data, you will EU, AI act, you know that is regulating AI issues. And one of the prohibited things that they said, that they cognitive manipulation, is forbidden for example.
So this is a very good step forward, and it’s still there. There are some, there’s something like a few months ahead, it will be effective, and let’s see how the regulator, the EU will rise.
They will be ready in six months. I think that in other places, it’s a little difficult. In Israel, I can say that they are super mature, though, although the market is looking at the AI act, and, you know, the market is trying to, there is beginning a change towards looking at those principles and adopting them or not the way. they think. I think that this is sincere, but we are very far from actual regulations, in that sense.
By the way, by guidance, the Israeli Science Ministry of Science, we do have some sort of guidance, which now is adopting the common material for AI use and deployment, but it is, first of all, it’s a guidance, it’s non binding,
And it’s mostly for public values at this stage, I think, on the business side.
Kohei: Thank you. That’s very interesting actions. So the next question is about the new tech companies. Because you, your law firm, are supporting the startup companies as well.
That’s a very important point to work on from a data protection or other legal perspective, even the small tech companies at this moment.
And so what do you think the new tech companies have to consider in the AI, in the data protection, the privacy from legal perspective to succeed in the business?
- What do new tech companies have to consider amid AI, data protection and privacy from a legal perspective to succeed their business?
Lior: It’s a good question, often being asked by founders. I think that first of all, they must be aware. You have to understand first whether or not there is not business that you’re planning to meet with privacy regulations.
So the most important thing I can give is, you know, to set the meeting with the privacy expert and to have a discussion for privacy by design.
They have to be aware of privacy by design from the start to understand the red line the boundaries, and you have to design your product and service, which you are building according to privacy principles from the start.
First of all, because this is the standard, and second, because this is the requirement by market, and third, because it will be much harder to change it, you know, at the latest stage.
So privacy gets designed. This is something that you need to adopt at first, I think that, you know, consultation, and call for conversation.
This is the best thing to do. I’m doing those all the time with founders, entrepreneurs. We’re having discussions way before they’re establishing more incorporating the company itself. We’re talking about the idea, the ideas, the ideation stage thereafter as well.
We are going together once the product is being developed and we’re discussing it together.
Then I think that the next time that we need after a maybe something more concrete, is once you’re going with the beta, you’re going to the public or going to the user, then you need some documentation as far as policy.
And this is another step that you need for another milestone. You need to check yourself before you go out. You have to make another consultation. And usually when we meet a startup in our data protection assessment, usually it’s later stage to the startup raises enough funds.
after raising funds they are starting to talk about assessments and the controls, compliance controls. And after they usually you can see most of the companies are coming to consult both assessments, because you know the funded company, you have a product outside, and you know when the risk is higher.
And then you need not only to have privacy by design consultation, but so you need to do sort of things, assessments and control and you have the DPO informed in place.
- Message to listeners
Kohei: Thank you. I agree with the designing phase. It’s becoming so important to protect the fundamental rights. That’s because privacy by design is a key part of the requirements for this startup as well.
So in the end, I’d like to ask you about the last message for listeners. And so you had a lot of things with business side support and happy to share your message to listeners. So could you share about it?
Lior: And now the message is that stay tuned for privacy compliance, be aware of privacy by design and most important principle, of course, and then if you need any assistance, I will be happy to provide and assist. If you need any, reach out to the Israeli market. And that’s it. That’s it.
Kohei: Thank you. Thank you. Because a lot of the Israeli high tech startups there, a lot of the company wants to collaborate with these startups, so you may have, like good facilitators to bridge the regulatory perspective and business opportunities. So yeah, that’s a great conversation with you today.
Lior: Thanks the same here, and thanks a lot for the opportunity. Thank you.
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