Lithuania takes to AI regulation, aims to become regional leader

VILNIUS – Lithuania aims to regulate artificial intelligence (AI) and become a regional leader in the development of this technology following the entry into force of the European Union's Artificial Intelligence Act, the Economy and Innovation Ministry said on Monday.

The ministry plans to submit draft legislative amendments, which would give the Communications Regulatory Authority (RRT) the functions of an AI market watchdog and a single point of contact, and the Innovation Agency the functions of a notifying authority, with a pilot AI regulatory environment to be set up within the Agency.

According to Economy and Innovation Minister Ausrine Armonaite, Lithuania has all the potential to be one of the leaders in the development of this technology.

“Lithuania can become an innovation hub for AI, just like in fintech or cybersecurity. Our goal is to create the most favorable environment for innovative businesses to create and develop AI solutions," she said.

Once the amendments are adopted by the Seimas, the RRT will have to ensure that AI systems placed on the market, or the products in which they are integrated, are reliable and safe.

The Innovation Agency will assess the eligibility of companies, research and education institutions wishing to become notified bodies. Notified bodies will carry out conformity assessment and certification of high-risk AI systems.

The Innovation Agency will also set up an AI regulatory pilot environment to stimulate innovation and facilitate the development and testing of AI systems before they are put on the market.

Lithuania developed its AI strategy in 2019 and was the second EU country to do so. The strategy sets the goal to become a regional leader in AI and to join the global ecosystem for this technology.

In March, the European Parliament gave its final approval to the AI regulatory legislation. The new rules banned certain applications of the AI that threaten citizens' rights.