Legal Regulation of Artificial Intelligence in Ukraine: Latest Trends and Developments

Basics of Legal Regulation

Ukraine has taken significant steps to establish a comprehensive legal framework for regulating artificial intelligence (AI) systems and ensuring responsible AI development and use. The country has amended its copyright law, signed international agreements, and outlined a roadmap for future AI governance initiatives. 

Key Legislation Updates

Intellectual Property Rights for AI-Generated Works 

Back in December 2022, Ukraine introduced amendments to its copyright law, addressing the ownership of intellectual property rights for AI-generated works. The law now recognizes “sui generis” rights – special rights granted to non-original objects created without the involvement of humans.

AI-generated works that differ from similar works and which are created without the participation of humans are subject to these sui generis rights. The rights include the ability to use the work and either authorize or prohibit third-party use. The tangible sui generis rights belong to the natural person who has the software license that created the work or the software owner, as specified in separate agreements.

The validity period for sui generis rights on AI-generated works is 25 years from the first day of the year following the year of creation. In addition, non-original databases now benefit from sui generis rights for 15 years from their creation. 

International Cooperation and Initiatives

The Bletchley Declaration

In November 2023, Ukraine joined other countries in signing the Bletchley Declaration at the AI Safety Summit. This declaration outlines a commitment to international cooperation on ensuring the safe development, deployment, and use of AI, particularly addressing risks associated with “frontier AI” capabilities.

Key aspects of the Bletchley Declaration include:

  • Recognition of AI’s significant opportunities and risks, especially in domains like cybersecurity, biotechnology, and disinformation;
  • Emphasis on the urgent need to understand and address potential risks from highly-capable “frontier AI” models;
  • Commitment to promoting human-centric, trustworthy, and responsible AI through international collaboration;
  • Encouragement for transparency and accountability from actors developing frontier AI capabilities;
  • Establishment of an agenda to identify AI safety risks, build shared understanding, develop risk-based policies, support research, and facilitate international dialogue on frontier AI safety.

By signing the declaration, Ukraine has signaled its commitment to cooperating with the international community in ensuring safe and responsible development of AI. 

Ukraine’s AI Regulation Roadmap

Principles and key elements

In October 2023, the Expert Committee on the Development of Artificial Intelligence presented, in collaboration with the Ministry of Digital Transformation of Ukraine, a roadmap for the regulation of AI in Ukraine. The roadmap outlines a bottom-up approach based on the following principles:

  • Service function: Providing businesses with tools to prepare for future Ukrainian AI law and for entering the EU market;
  • Balance: Avoiding being among the first to introduce regulations, learning from the experiences of other countries, and considering global realities and domestic interests;
  • Partnership and self-regulation: Building a culture of self-regulation in partnership with the private sector;
  • Global perspective: Considering the extraterritorial effect of the EU AI Act and the “Brussels Effect,” as well as Ukraine’s domestic interests;
  • Product approach: Providing tools to help businesses prepare for entering international markets.

Key elements of the roadmap include:

  • Development of a White Paper with recommendations for self-regulation;
  • Launch of a regulatory sandbox for AI development and testing;
  • Participation in the HUDERIA pilot project (impact assessment methodology);
  • Emphasis on protecting the rights of Ukrainians in digital space and personal data;
  • AI Legal Advisory Platform;
  • AI Labelling;
  • Voluntary AI Commitments, tools to help businesses prepare their AI products/services for future regulation;
  • Sectoral guidance on responsible use of AI.

This soft law approach is designed to foster a culture of responsibility and self-governance among AI companies and stakeholders, without immediately imposing legally binding regulations that could stifle innovation.

Transition to National AI Legislation

Following an initial 2–3-year period of self-regulation, the next step will be to form comprehensive national AI legislation aligned with the European Union’s AI Act. Ukraine’s bottom-up process aims to create a smooth transition by first allowing businesses to adapt through self-regulation before transitioning to an official regulatory framework harmonized with EU rules.

At the same time, Ukraine does not have plans to regulate the military use of AI.

The aim of the roadmap is to strike a balance between fostering innovation in the AI sector and addressing potential risks, enabling Ukrainian businesses to become more competitive and gain access to global markets while ensuring alignment with future EU regulations.

Sectoral Guidance: Responsible AI in News Media

As part of the AI regulation roadmap, the Expert Committee on the Development of Artificial Intelligence has developed, in collaboration with the Ministry of Digital Transformation of Ukraine and the National Council of Television and Radio Broadcasting, Guidelines on the Responsible Use of Artificial Intelligence in the News Media.

These guidelines aim to promote the ethical and responsible implementation of AI systems by media organizations while respecting human rights and professional ethical standards. Key aspects include:

  • Definitions and application areas for using AI in news media operations;
  • Main principles: Responsible editorial decision-making, legality, risk assessment, transparency, audience awareness, confidentiality/data protection, diversity/non-discrimination, human oversight, accountability, and adaptability;
  • Recommendations for media that are developing their own AI systems vs. using third-party systems;
  • Guidance on transparency practices like labeling AI-generated content and providing information on usage of the AI system;
  • Emphasis on human oversight and editorial responsibility, even when using AI tools;
  • Principles for ethical content personalization and recommendation systems;
  • Measures to uphold accountability, including developing internal guidelines and industry codes of conduct;
  • A recommended algorithm for evaluating and selecting AI systems based on various considerations.

The guidelines provide a comprehensive framework for Ukrainian media to navigate the responsible adoption of AI technologies while mitigating risks and upholding ethical standards in journalism.

Protection of Human Rights and Personal Data

While Ukraine’s current data protection law does not have special requirements for AI data processing, proposed draft bills propose updating legislation to align with European GDPR and Data Act standards.

The EU-funded EU4DigitalUA project has presented, in cooperation with the Ombudsman Office and the Ministry of Digital Transformation of Ukraine, the country’s first Guidelines on the protection of human rights and the right to privacy in the development and implementation of AI technologies.

These Guidelines, titled “Human Rights in the Era of Artificial Intelligence: Challenges and Legal Regulation,” examine the impact of AI systems and outline approaches to regulating this sphere in accordance with national legislation and international standards.

Further steps involve developing more specific guidelines focusing on individual AI-related issues, creating a methodology for assessing AI’s impact on human rights, establishing a regulatory sandbox, developing voluntary codes of conduct for businesses, and publishing a White Paper on AI regulation.

The main objective of these instruments is to ensure an adequate level of human rights protection in any interactions with AI systems, facilitating the responsible development of AI capabilities while upholding key rights and ethical principles.

Concept of State Targeted Scientific and Technical Program for the Use of AI Technologies

In April 2024, the Cabinet of Ministers of Ukraine approved the Concept of the State Targeted Scientific and Technical Program for the Use of Artificial Intelligence Technologies in Priority Economic Sectors until 2026. This program aims to define the directions and objectives for the development of artificial intelligence technologies and introduce mechanisms for state support, which will contribute to enhancing Ukraine’s economic potential and strengthening its position on the global market.

The Concept identifies the main problems associated with the use of artificial intelligence technologies in priority economic sectors, such as imperfect identification of technologies, lack of criteria for assessing results and threats, insufficient standardization of requirements, distribution of user responsibilities, criteria for preliminary compliance checks, and control mechanisms. The program envisages a comprehensive approach to addressing these issues, including:

  • Conducting research in the field of artificial intelligence;
  • Developing a regulatory framework and harmonizing it with EU acts;
  • Training qualified personnel and developing education;
  • Developing information infrastructure;
  • Ensuring information security.

It is expected that the implementation of the program will contribute to enhancing the innovative component in production processes, expanding cooperation with the EU, and involving economic entities to assess the economic effectiveness of the artificial intelligence technologies used.

Planned AI Governance Initiatives for 2024

As part of its national AI regulation roadmap, Ukraine has outlined several key initiatives planned for implementation in 2024:

  • Voluntary AI Commitments: Encouraging the adoption of voluntary codes of conduct by AI companies and stakeholders to promote ethical and responsible development and use of AI systems;
  • Sectoral Guidance: Developing sector-specific guidance documents on the responsible use of AI tailored to different industries;
  • Participation in the HUDERIA Pilot Project: Ukraine will participate in this pilot focused on impact assessment of AI systems;
  • Regulatory Sandbox for AI: Establishing a controlled environment or “sandbox” where AI technologies can be developed and tested under monitoring prior to deployment;
  • Public White Paper: Publishing a White Paper that provides recommendations and best practices for self-regulation of the AI industry in the interim period before binding regulations are put into place;
  • AI Legal Advisory Platform: Creating a platform to provide legal guidance and advisory support to AI developers and users on compliance with existing laws and ethical principles.

These initiatives aim to build an enabling environment for safe AI innovation in Ukraine while fostering a culture of ethical and responsible practice within the AI ecosystem.

Development of National AI Legislation Aligned with EU AI Act

Ukraine plans, as the next phase of its AI regulatory roadmap, to initiate the development of comprehensive national AI legislation in 2024 aimed at harmonization with the European Union’s AI Act.

The objective is to ensure Ukraine’s AI governance framework is compatible with forthcoming EU rules, facilitating integration with the European market while upholding standards for trustworthy and human-centric AI.

The alignment process will occur in stages, with targets to achieve 20% harmonization by 2026 and 50% harmonization by 2027.

This phased approach allows Ukraine to adapt its legal and regulatory structures gradually, learning from the EU’s implementation experience and engaging stakeholders throughout the drafting process.

Aligning with the EU AI Act will involve putting key requirements into Ukrainian law, such as risk-based regulation of AI systems, ex-ante conformity assessments for high-risk AI applications, transparency and human oversight obligations, data governance and management practices, and AI value chain monitoring and compliance measures.

Artificial Intelligence, Human Rights, Democracy, and the Rule of Law Framework Convention

Ukraine has finalized, together with the Council of Europe, the draft text of a landmark Convention on Artificial Intelligence (AI), Human Rights, Democracy, and the Rule of Law. As the world’s first legally binding instrument on AI and human rights, this Convention represents a significant development in the international governance of AI, such as:

  • The Convention covers only the public sector, so this convention will not be obligatory for private entities;
  • Complaint mechanisms;
  • References to human dignity/autonomy;
  • Public consultation processes;
  • AI systems used for national security purposes are excluded from the scope;
  • Criteria for prohibited high-risk AI uses.

As Ukraine aims to implement the provisions of this Convention into national legislation, it will be important to address any human rights concerns. Ensuring robust human rights safeguards, independent oversight, and clear enforcement mechanisms will be crucial for aligning Ukraine’s AI governance framework with international standards.

Conclusion

Ukraine has embarked on an ambitious path to establish a comprehensive governance framework for artificial intelligence technologies. The cornerstone efforts outlined in this article, including legislative amendments, international cooperation initiatives, the national AI regulation roadmap, and planned programs and policies, demonstrate Ukraine’s commitment to fostering responsible AI innovation while mitigating the risks of doing so.

By pursuing a balanced, multi-stakeholder approach, Ukraine aims to create an enabling environment that promotes the development and adoption of trustworthy AI systems across priority economic sectors. The phased transition, beginning with self-regulation and voluntary commitments, enables businesses to adapt gradually before binding regulations fully harmonized with the EU AI Act take effect.

Crucially, Ukraine recognizes the importance of upholding human rights, ethical principles, and democratic values as AI capabilities advance. Initiatives focused on human rights impact assessments, data protection, transparency, and accountability mechanisms underscore this commitment to developing human-centric AI governance.

Ukraine positions itself to responsibly unlock the benefits of artificial intelligence for economic growth, societal progress, and enhancing its global competitiveness in the digital age. The comprehensive approach outlined paves the way for the trustworthy and ethical adoption of AI across all sectors, ensuring Ukraine remains at the forefront of technological advancements while upholding its core values and principles.

  • Peter Bilyk

    Head of AI practice Juscutum, member of Expert Committee on the Development of Artificial intelligence in Ukraine under the Ministry of Digital Transformation of Ukraine

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Juscutum is an innovative legal company that has been operating at the intersection of technology and law since 2008. Juscutum aims to transform the legal profession, making it modern and digitalized.

Juscutum offers not only a full range of traditional legal services but also has unique industry specializations such as IT, AI, Crypto, Media, and more. Today, the company is integrating artificial intelligence into the provision of legal services. Juscutum became the first legal company in Ukraine to open a practice in Artificial Intelligence. However, being the first is quite usual for Juscutum. In 2014, the company was the first in Ukraine to open an IT practice. By 2015, Juscutum became the first among all legal companies in Ukraine to accept payment for its services in cryptocurrency. Currently, Juscutum is focused on large IT and crypto projects, assisting these projects in scaling globally.

Juscutum is recognized by international ratings such as The Legal 500, Chambers, Financial Times, Who’s Who Legal, and others. The company collaborates regularly with the Ministry of Digital Transformation of Ukraine. Juscutum’s lawyers helped develop the law regulating of Diia.City and the Law “On Virtual Assets.”

Over the past year, Juscutum’s experts have been involved in legislative work and consultations on the following projects:

  • Implementation of the Markets in Crypto-Assets Regulation (MiCA) in the EU for the European Securities and Markets Authority
  • Roadmap for the development of AI in Ukraine. Became a member of the AI committee at the Ministry of Digital Transformation of Ukraine
  • Electronic residency
  • Regulatory sandboxes

Negotiations related to the accession of various countries to the EU.