ARTIFICIAL INTELLIGENCE
Explaining the decision is made more difficult by the fact that AI tends to function as a ‘black box’ with even those behind the systems unable completely to know how decisions are made. This will get harder as the machine learning capabilities of AI come more into play. Hard as it may be, we must insist that AI be able to explain its decision-making process, that it show the data points it has counted and demonstrate where they correlate with certain outcomes. Only then can it report that it has proven links which guide its decisions. Ultimately, AI algorithms should be reviewable by a human, and we need to know how and where data is being processed and used. Game integrity will also need to be regulated and, especially where AI itself forms part of a game, there will need to be human oversight and monitoring to ensure that it is conducted fairly. Regulatory standards in jurisdictions around the world have fairness as a key objective, but in the context of AI-designed and operated games, this will need to be independently tested and verified. Regulation & consumer confidence The mechanics of different verticals are often built into their license and this magazine has observed more than once the limitations placed on the advance of technology in gaming as a result. Where regulation is highly prescriptive, every tweak or iteration has to be certified. With a technology that is moving as fast as AI this could be seen as either a block on innovation or brake on a technology that is out of control, depending on the perspective of the observer. Either way, limited use of AI in gaming is unlikely to stand isolated from the tide of innovation if it continues to surge into so many other parts of our lives. Regulators who strive to be technology-agnostic using terms like ‘behavior monitoring tools’ rather than defining these too closely are likely to find their rules are more future proof than those that do not. Here, as in many other areas, a constructive dialogue with the industry will be vital. The good news is that the AI outputs which inform AML and RG decisions can also be harnessed to drive policy decisions making it an
exciting time for operators and regulators alike.
Aside from gaming, there are several notable moves to regulate AI which recognise its potential upsides and downsides. In Europe, Spain unveiled the Spanish Agency for the Supervision of Artificial Intelligence (AESIA) in August, making it the first EU country to establish a regulatory body. Preferring to take an active role, Germany announced a substantial AI Action Plan, with the Federal Ministry of Education and Research committing to more than €1.6 billion to boost investments in AI research and skills training. Elsewhere, copyright concerns have been the focus for a technology that is becoming increasingly sophisticated at generating text content and images. The United States Copyright Office is currently processing applications to register works containing AI-generated materials and has launched a comprehensive review of AI copyright infringement claims. It is consulting on a range of issues including the use of copyrighted works to train AI models, the required levels of transparency and disclosure, and the legal status of AI-generated outputs. ChatGPT has carved out a place in public consciousness that is largely positive and fun. Students and journalists may have misbehaved and there are dire warnings for the impact on jobs, but for the most part, people seem curious about the possibilities. Heavy-handed law suits or a wave of scandals about exploitation could bring this honeymoon period to a rapid halt. Consumer awareness of big data may be limited but that does not stop people from being deeply suspicious about, for example, dynamic airline ticket pricing, and that is not even a smart AI application. If as an industry, the online gambling sector gained a reputation for using AI to exploit customers or target vulnerable groups the initial curiosity would quickly turn hostile It is the responsibility of the industry and its regulators to ensure this powerful technology is rolled out and regulated in ways that consumers understand and accept, because the consequences of not doing so would have an affect far beyond gaming.
PHIL SAVAGE Head of Publications and European Affairs, IMGL For information contact +44 7778 635836 phil@IMGL.org
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IMGL MAGAZINE | OCTOBER 2023
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