Unilever lays out action plan as EU AI Act takes effect

31 Jul 2024 --- Unilever outlines the steps it has taken to navigate the EU AI Act, which will come into force tomorrow as the first comprehensive AI regulation that aims to govern the risks of AI systems.

The EU AI Act is the world’s first comprehensive AI law aimed at mitigating the risks of AI use and is widely considered to become the blueprint for other similar AI regulatory regimes developing around the world.

“Regulatory compliance is a key component of our Responsible AI Framework, and we are proactively monitoring and addressing upcoming legal developments that may impact Unilever,” explains Christine Lee, chief privacy officer.

Triage system for regulatory compliance
Unilever manages over 500 AI systems in operation globally, ranging from AI-driven R&D that enables faster innovation cycles to machine-activated stock control and generative AI-powered consumer experiences in the marketing space.

Unilever’s AI assurance journey began in 2019, as the global debate on digital transparency and privacy began escalating. The business started to review its practices on data and AI ethics.

In 2021 Unilever strengthened its business principles to commit to “responsible, ethical and fair” use of data. Over the following years, it started building its AI assurance process, scaling this up for the generative AI boom.

To ensure regulatory compliance, a cross-functional team of subject matter experts — including Unilever’s partners at Holistic AI — assesses potential new projects using AI systems at the company.

The partners review the project’s needs, manage risks and suggest improvements or mitigation strategies that might be needed prior to deployment, as well as any ongoing monitoring.

This triage system is further backed by Unilever’s Responsible AI Principles, which outline the company’s commitments developing, deploying and using AI technologies in line with legal and regulatory requirements.

Unilever manages over 500 AI systems in operation globally.Robust risk management
Unilever’s cross-functional team recently hit its 150 “projects assured” milestone.

“Taking proof of concept projects using AI systems through a thorough assurance process at an early stage is enabling us to be more innovative and fully deploy trustworthy AI systems more quickly,” says Andy Hill, chief data officer.

He adds: “We see potential in the use of AI to drive productivity, creativity and growth at Unilever.”

“With augmentation, we’re supporting our teams through learning, enhanced decision-making and new experiences. And by creating autonomous systems, we believe AI can drive productivity within our business,” he notes.

“As the deployments of these systems grow, we cannot underestimate the importance of making sure it works in a responsible manner.”

Keeping pace in a novel sector
Unilever is keeping an eye on new global legal frameworks, such as the EU AI Act and the US White House Executive Order on AI.

“Although Unilever has developed legal and ethical guardrails for AI, risks around issues such as IP rights, data privacy, transparency, confidentiality and AI bias can remain, as legal frameworks can lag behind the rapidly evolving technology,” explains Lee.

“As demand for AI systems, technology and capabilities continues to grow, we expect regulations to evolve as different countries discuss their own approaches to governing AI,” adds Andy.

“We will continue to ensure Unilever stays in step with legal developments that affect our business and brands — from copyright ownership in AI-generated materials to data privacy laws and advertising regulations.”

“I’m very excited to see where the integration of digital innovation and the latest technologies can take us, but we also need to make sure that our data is well governed and that whenever Unilever uses AI, it is in an effective and responsible manner,” he says.

In a recent Special Report, Personal Care Insights spotlighted emergent solutions, including virtual try-on services equipped up with photorealistic skin care simulations to virtual scalp and hair care diagnostic therapy.

Earlier this year, The Estée Lauder Companies and Microsoft co-unveiled an AI Innovation Lab. Leveraging generative AI capabilities in Microsoft’s Azure OpenAI Service, the companies will develop solutions that equip ELC’s more than 20 prestige beauty brands with “closer consumer connections” and “increased speed to market with local relevance.”