Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 468

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 468
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global privacy laws allow individuals the right to opt out of certain automated processing of personal data and create other requirements
that impact automated decision-making. At the federal level, the President of the United States recently issued an Executive Order on
the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, which charges multiple agencies, including The National
Institute of Standards and Technology, with producing guidelines in connection with the development and use of AI. In the European Union,
there was political agreement on the EU AI Act, which 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 intellectual
property ownership and license rights, including copyright, surrounding AI technologies has not been fully addressed by courts or laws
or regulations, and the use or adoption of AI technologies into our offerings may result in exposure to claims of copyright infringement
or other intellectual property misappropriation. As the legal and regulatory framework for AI and automated decision making evolves, we
may not always be able to anticipate how to respond to these laws or regulations, and compliance may adversely impact our operations and
involve significant expenditure and resources. Any failure by us to comply may result in significant liability, potential increases in
civil claims against us, negative publicity, an erosion of trust, and