Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 84

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 84
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 regulation of AI is uncertain, but the National Institute
of Standards and Technology issued the NIST-AI-600-1, AI Risk Management Framework: Generative Artificial Intelligence Profile which will
likely remain a standard that regulators may consider for determining whether companies have adequate assessed the risk of use of AI.

A number of states have issued
or proposed laws that require developers and deployers of high risk AI tools and systems to conduct risk assessments and take steps to
avoid algorithmic discrimination. In addition, these laws provide consumers with the right to pre-use notice and certain rights to opt-out
of use of such tools for certain kinds of automated decisions and to seek human review for adverse decisions. These laws could impose
additional obligations on us to comply with such requirements and limit the Company’s ability to use AI and automated decision making.
Violations of such laws could expose the Company to fines and sanctions and consumer class actions.

In the European Union, the
EU AI Act establishes a comprehensive, risk-based governance framework for AI in the EU market. The EU AI Act entered in force
on August 1, 2024, and the majority of the substantive requirements will apply two years later (beginning 2026). The EU AI Act will
apply to companies that develop, use and/or provide AI in the European Union and includes requirements around transparency, conformity
assessments and monitoring, risk assessments, human oversight, security, accuracy, general purpose AI and foundation models, and proposes
fines for breach of up to 7% of worldwide annual turnover (revenue). Additionally, in September of 2022, the European Commission
proposed two Directives seeking to establish a harmonized civil liability regime for AI in the European Union, in order to facilitate
civil claims in respect of harm caused by AI and to include AI-enabled products within the scope of the European Union’s existing
strict liability regime. Once fully applicable, the EU AI Act will have a material impact on the way AI is regulated in the
European Union, and together with developing guidance and/or decisions in this area, may affect our use of AI and our ability to provide,
improve, or commercialize our cloud services, and could require additional compliance measures and changes to our operations and processes.

Moreover, the protectability
and ownership of intellectual property, including patent and copyright, resulting from the use of AI technologies has not been fully addressed
by courts or laws or regulations. To the extent we use AI technologies to generate or develop other technology, we