Five key points of the Artificial Intelligence Act regarding business connectivity and SD-WAN solutions
Regulation (EU) 2024/1689 of the European Parliament and of the Council of June 13, 2024, establishing harmonized rules on artificial intelligence, which we will refer to as the European Union (EU) Artificial Intelligence Act (AI Act), in effect since August 1, 2024, will have a significant impact on telecommunications companies providing global enterprise connectivity services and SD-WAN network solutions.
The EU will gradually implement the strict regulations set forth in the AI Act by 2026. Many of these regulations will be mandatory for SD-WAN networks that use AI for predictive analysis or network troubleshooting. It will also affect “rerouting,” a key technique in network management within SD-WAN systems to maintain service efficiency and reliability at all times.
The regulation imposes high standards of transparency regarding the operation of these systems and requires that they be explainable. Companies will have to provide their customers with clear information on how AI makes decisions, especially if these decisions affect network security or performance. The EU’s AI Act is highly demanding, but it will also offer opportunities to innovate responsibly, generate a competitive advantage, and earn the market’s trust.
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Compliance and regulations
Telecommunications companies and SD-WAN solution providers must ensure that the AI systems they use comply with new regulations. This includes ensuring that AI systems are transparent, secure, and respect fundamental rights, such as privacy and non-discrimination. To this end, companies must implement risk assessment and mitigation mechanisms.
SD-WAN solutions use AI to optimize network traffic in real time. Operators must ensure that algorithms comply with the requirements of the AI Act to prevent automated decisions that could unfairly affect service quality for certain users or European regions
Classification of AI systems
The AI Act classifies artificial intelligence systems into different categories based on their risk level (unacceptable, high, limited, and minimal). Telecommunications companies that use AI systems in areas considered high-risk, such as network security or the analysis of sensitive data, will be subject to stricter requirements.
The AI Act establishes clear responsibilities for developers and operators of AI systems, so companies must ensure that their systems are secure and well-documented to avoid potential litigation. In this regard, it is important to note that the AI in an SD-WAN network can make critical decisions, such as automatically rerouting traffic in the event of a security threat or prioritizing certain types of traffic.
Responsible innovation and development
One of the objectives of European law is to promote more ethical and secure AI. These two values will benefit the companies themselves by demonstrating responsible development (CSR), as well as consumers. The AI Act also aims to serve as a catalyst for innovation, encouraging companies to develop more advanced AI technologies that comply with regulatory requirements. The Act includes a series of measures to this end.
To meet transparency and “explainability” requirements, SD-WAN companies can invest in emerging technologies such as interpretable machine learning, which helps provide a better understanding of how AI models make decisions. These technologies not only enable compliance with these requirements but also empower customers to manage their networks more efficiently.
Data protection and privacy
The AI Act reinforces data protection regulations, such as the General Data Protection Regulation (GDPR), as well as the current Law 3/2018 of December 5 on the Protection of Personal Data and the Guarantee of Digital Rights (LOPDGDD). Telecommunications companies must exercise particular care when processing personal data using AI systems. They must ensure that this information is processed transparently and with proper consent.
SD-WAN service providers that monitor data traffic using AI must also comply with these strict privacy and data protection regulations. If AI algorithms access, analyze, or store personal data, the company must ensure that this is done in a manner that complies with the AI Act and the GDPR. This may involve implementing additional measures to anonymize data or limiting access to only the personal data strictly necessary.
Keep in mind that the Act provides, in its final phase of implementation, for the development of a penalty regime by each European Union member state for non-compliance with the regulations.
Legal responsibility
The law also establishes a clear framework for liability regarding the use of AI. Telecommunications companies could be held liable for any harm caused by their AI systems, underscoring the importance of ensuring that these systems are secure and well-managed.
The law also establishes a clear framework for liability regarding the use of AI. Telecommunications companies could be held liable for any harm caused by their AI systems, underscoring the importance of ensuring that these systems are secure and well-managed.
In the case of an SD-WAN network, if AI makes critical decisions—such as automatically rerouting traffic in the event of a security threat or prioritizing certain types of traffic—the company could be held legally liable in the event of security failures.