AI REGULATIONS IN DENMARK

In Denmark, AI regulations and initiatives are strategically developed to foster innovation, digital transformation, and ethical AI practices across various sectors. One of the foundational initiatives is the set up of – The Disruption Council, operational from 2017 to 2019 under the Ministry of Employment (BM), brought together businesses, governmental institutions, and job market experts to address the challenges and opportunities presented by technological advancements. This partnership aimed to provide recommendations on future skills and labor demand, ensuring that Denmark’s workforce is prepared for the evolving labor market.

Then came the Technology Pact, launched in 2018 by the Ministry of Industry, Business and Financial Affairs (EM). This pact aims to attract 250 participating members and increase the number of students choosing STEM subjects by 20%, or 10,000 students by 2025. The objectives include boosting STEM education and upgrading qualifications in technology and digital skills, aligning with the OECD AI principle of building human capacity and preparing for labor market transitions.

Another key initiative, SME:Digital, also initiated in 2018 by the Ministry of Industry, Business and Financial Affairs (EM), supports the digital transformation of Danish SMEs. This program helps SMEs implement digital solutions and provides guidance on e-commerce and e-exports, fostering a digital ecosystem for AI and addressing the significant digital gap between SMEs and larger companies.

Additionally, the Declaration on AI in the Nordic-Baltic Region, released in May 2018, demonstrates Denmark’s commitment to international cooperation for trustworthy AI. The declaration, signed by digital development ministers from Denmark, Estonia, Finland, the Faroe Islands, Iceland, Latvia, Lithuania, Norway, Sweden, and the Åland Islands, focuses on skills development, data access, ethical guidelines, and standards for privacy, security, and trust. The Nordic-Baltic collaboration aims to ensure AI’s prominent role in European discussions and avoid unnecessary regulations.

Denmark’s National Strategy for AI, implemented from 2019 to 2022, is a comprehensive approach to making Denmark a frontrunner in the digital economy. Managed by the Ministry of Industry, Business and Financial Affairs (EM) and the Danish Business Authority (ERST), the strategy includes 24 key initiatives focusing on creating public-private digital hubs, assisting SMEs with data-driven business development, enhancing technical and digital skills through educational institutions, and strengthening cybersecurity. The strategy emphasizes responsible AI foundations, better data practices, strong competences, new knowledge, and increased investment. It also sets priority areas such as healthcare, energy, utilities, agriculture, and transport, while promoting international cooperation on AI.

The Law on the Disclosure of Data Ethics Policy, adopted in 2020, further underscores Denmark’s commitment to ethical AI practices. This law is the world’s first regulation of Data Ethics. This policy mandates Denmark’s largest companies to disclose their data ethics policies, fostering transparency and aligning with the OECD AI principle of providing an enabling policy environment for AI.

Furthermore, Denmark is set to enhance its global tech leadership with a new digitalization strategy unveiled on November 16, 2023. This comprehensive plan, backed by a 800 million DKK investment over the next four years, includes 25 initiatives aimed at advancing Artificial Intelligence (AI), automation, and digitalization for small and medium-sized enterprises. A key highlight is the 55 million DKK allocation for a strategic AI initiative, which will define Denmark’s AI vision and leverage its benefits for society. Additionally, the strategy introduces a 17 million DKK “Regulatory Sandbox” for AI, designed to support companies and authorities in navigating AI regulations and development. This sandbox will enable close collaboration with public authorities, fostering international partnerships and innovation. These efforts position Denmark as a forefront leader in AI technology and regulation, attracting global investment and setting a benchmark for responsible AI use.