Legal framework for AI systems: BBH group prepares study for the BBSR

The BBH group, the German Institute of Urban Affairs (Difu) and the Fraunhofer Institute for Experimental Software Engineering IESE have drawn up a study on innovative AI applications for urban development, smart cities and regions. The study has been published by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR). In addition to practical examples and innovative scenarios, the study provides municipal decision-makers with a comprehensive overview of the legal framework for the use of AI systems.

The BBSR, an institute of the Federal Office for Building and Regional Planning (BBR), has published the study “Künstliche Intelligenz in smarten Städten und Regionen – Innovative KI-Anwendungen für die Stadtentwicklung” within the framework of the funding programme “Model Projects Smart Cities”.

The 84-page publication, prepared by the German Institute of Urban Affairs (Difu), the Fraunhofer Institute for Experimental Software Engineering IESE and the BBH group is meant to be a practical guide for municipal decision-makers aiming at integrating AI for urban development purposes. The study examines not only the potential of AI and the associated technical and organisational requirements, but also the provisions of the AI Act (Regulation (EU) 2024/1689 on artificial intelligence) with a view to using AI in smart cities and regions.

It also contains specific recommendations on contract drafting, data strategy and intellectual property which are intended to enable municipalities to implement AI projects efficiently and with legal certainty. 

“The AI Act is just the beginning: Users of AI systems must also keep an eye on copyright, data protection (GDPR) and IT security requirements,” emphasises BBH partner Julien Wilmes-Horváth (lawyer, specialist lawyer for IT law), thanking BBH lawyers Robert Grützner and Anna Schriever for their work. All three agree: “Using AI is associated with a wide range of legal challenges. Even negligent violations can result in warnings, compensation claims or administrative fines. Taking the right legal and strategic measures can help to prevent such consequences.”

With more than 700 employees, 7,000 clients and 7 offices, the BBH group is a leading provider of advisory services to energy and infrastructure companies and their customers. Energy and supply companies, particularly public utilities, municipalities and local authorities, industrial companies and international groups are among its core clients. The BBH group assists these and many other companies and organisations with legal, business and strategic advice.

Download the study (in German) for free on: BBSR - Veröffentlichungen - Künstliche Intelligenz in smarten Städten und Regionen

Contact:
Prof. Dr. Ines Zenke
Rechtsanwältin/Lawyer, Partner
Phone +49 (0)30 611 28 40-179
ines.zenke@bbh-online.de

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