Company: RSKD
Filing Date: 2025-03-06
Form Type: 20-F
Source: 0001851112-25-000006
Chunk: 36

Company: RISKIFIED LTD.
Filing Date: 2025-03-06
Form: 20-F
Item: Item 3
Chunk 36
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 could require us to expend significant resources to modify our products, services, or operations to ensure compliance or remain competitive. U. S. legislation related to artificial intelligence technologies has also been introduced at the federal level and is advancing at the state level. For example, California enacted 17 new laws in 2024 that regulate use of artificial intelligence technologies and provide consumers with additional protections around companies’ use of artificial intelligence technologies, such as requiring companies to disclose certain uses of generative artificial intelligence. Other states have also passed artificial-intelligence-focused legislation, such as Colorado’s Artificial Intelligence Act, which will require developers and deployers of “high-risk” artificial intelligence systems to implement certain safeguards against algorithmic discrimination, and Utah’s Artificial Intelligence Policy Act, which establishes disclosure requirements and accountability measures for the use of generative artificial intelligence in certain consumer interactions. Such additional regulations may impact our ability to develop, use, procure and commercialize artificial intelligence and machine learning technologies in the future. Additionally, new laws regulating artificial intelligence have been enacted in China and the European Union's Artificial Intelligence Act (the “ EU AI Act”) entered into force in August 2024, establishing a comprehensive legal framework for the regulation of artificial intelligence across the EU. The majority of obligations under the EU AI Act will apply from August 2026. Once fully applicable, the EU AI Act will have a material impact on the way artificial intelligence is regulated in the EU, including requirements around transparency, conformity assessments and monitoring, risk assessments, human oversight, security, accuracy, general purpose artificial intelligence and foundation models, and fines for breach of up to 7% of worldwide annual turnover. In 2022 and 2023, China implemented a number of regulations to govern generative artificial intelligence, algorithmic recommendation and deep synthesis technologies, namely the Interim Provisions on Management of Generative Artificial Intelligence Services, Administrative Provisions on Algorithm Recommendation for Internet Information Services and Provisions on Management of Deep Synthesis in Internet Information Service, respectively. Such regulations impose strict obligations on service providers, among other entities, with respect to their provision and use of generative artificial intelligence, algorithmic recommendation and deep synthesis technologies. For example, service providers must file the algorithms used and complete a security assessment with the local CAC before the provision of the service. The regulatory framework in China is expected to have a material impact on the way artificial intelligence is regulated in China, and together with developing guidance and/or decisions in this area, may affect our use of artificial intelligence and our ability to provide and to improve our