Artificial Intelligence - Curse or Blessing? Historical Analysis of Digital Developments up to the First European Law on Artificial Intelligence (AI-Act)

Artificial Intelligence - Curse or Blessing? Historical Analysis of Digital Developments up to the First European Law on Artificial Intelligence (AI-Act) PhD. student Julia KRENN1 Abstract Changes in the way people live and work, driven by digitalization and automation, have always triggered fears. Developments in the field of digitalization and automation, as well as the use of artificial intelligence, which has been the subject of much discussion recently, require people in all areas to have a certain degree of adaptability. Increasing complexity, the loss of jobs and the challenges of data protection are just a few examples of the challenges facing not only society but also legislators. The simplification of daily life and the increasing efficiency gains made possible by AI are some of the arguments in favor of using AI. The EU law on artificial intelligence aims to ensure that AI systems brought to market and deployed in the EU are safe and in line with the EU's fundamental rights and values. The groundbreaking proposal is also intended to promote investment and innovation in the field of AI in Europe. Keywords: artificial intelligence, industrial revolution, EU Artificial Intelligence Act, digitalization. JEL Classification: K33, K42 DOI: 10.62768/PLPA/2024/13/1/01 Please cite this article as: Krenn, Julia, „Artificial Intelligence - Curse or Blessing? Historical Analysis of Digital Developments up to the First European Law on Artificial Intelligence (AI-Act)”, Perspectives of Law and Public Administration 13, no. 1 (March 2024): 5-12 Article History Received: 14 February 2024 Revised: 3 March 2024 Accepted: 10 March 2024 1. Introduction Artificial intelligence is the ability of a machine to imitate human abilities such as reasoning, learning, planning and creativity. AI enables technical systems to perceive their environment, act on what they perceive, and solve problems to achieve a specific goal. The computer receives data, processes it and reacts. AI systems are able to adapt their actions by analysing the consequences of previous actions and working autonomously. There is much analysis and debate about whether artificial intelligence is a blessing or a curse. To make valid predictions, it is important to understand the historical development of past industrial revolutions. Moving to the current industrial revolution (Industry 5.0), with its focus on artificial intelligence, has raised people's fears and concerns, especially when it comes to becoming replaceable in the workplace. Emotional and creative decisions are potentially challenging for AI. On the basis of a review of the literature, the analysis describes the areas in which it will be necessary to create a legal framework in the future. Protection of fundamental and democratic values such as human rights, privacy and non-discrimination will be necessary. In many areas of life, artificial intelligence can be seen as a positive opportunity. A balanced approach is needed: artificial intelligence must not be misused, as in almost all areas of life. People should always be at the centre of the development of artificial intelligence. It is people who will be the deciding factor in whether artificial intelligence is a useful tool in everyday life, for example in the world of work. However, the past has also shown that inventions have not always been used for the benefit of human beings, but have often had devastating consequences for both human beings and the natural world. To make the misuse of artificial intelligence difficult or impossible, a legal framework is needed. The EU's goal is to be a democratic actor for the foreseeable future as 1 Julia Krenn – PhD. student, University of Economics in Bratislava, Slovak Republic, . Perspectives of Law and Public Administration Volume 13, Issue 1, March 2024 6 well. The aim is to be a guarantor of peace and prosperity together. The EU has developed and agreed a legal framework for enabling artificial intelligence for humanity's benefit. The law, which has been approved by the European Parliament, is designed to make using artificial intelligence safe and legally compliant, uphold European values, protect fundamental rights and promote innovation and competitiveness. The aim is to make the use of artificial intelligence safe, transparent, traceable, nondiscriminatory and environmentally friendly. 2. Industry in the course of time Industry 1.0. The Industrial Revolution describes the profound and lasting change in economic and social conditions, working conditions and living circumstances that began in the second half of the 18th century. 2 It was during this time that the first mass production by machines was developed - and thus Industry 1.0. The first machines, such as looms, were operated by human power. Mechanical production facilities were built and machines were driven by water and steam power. Water power was the first primary energy source. This was followed by steam engines. During this development phase, the first successes of early industrialization included the first railroads, coal mining, heavy industry, steam navigation, cloth production, transport and textile printing. During this transition, people recognized that the first industrial development created new jobs in the factory halls.3 Industry 2.0. The introduction of electricity as a driving force at the end of the 19th century was the starting signal for the second industrial revolution. With the first automobiles from the early 20th century onwards, manufacturing work became increasingly automated. Factory halls produced in rapid time on assembly lines and engines made production increasingly easier. During this development phase, office jobs also underwent further development in terms of communication. Telephone calls and telegrams simplified communication, which accelerated work processes. These success factors in the second revolution were the first steps towards globalization. The production of automobiles, clothing, raw materials and food was automated. Transportation also developed further, with goods being transported across continents for the first time. Aviation began operations and the world's oceans could be crossed by ship.4 Industry 3.0. Another 100 years later, production was automated through the use of IT and computers. Since the 1970s, it has been possible to use electronic components in the industrial environment. Production was further advanced by automation with electronics, IT and programmable logic controllers. Machine processes could be controlled more efficiently and human intervention in production processes was reduced to a minimum. 5 Industry 4.0. In the context of the fourth industrial revolution, there is a focus on the increasing digitalization of previously analogue technologies and the integration of cyber-physical systems. In many areas, stock production has been replaced by the manufacturing of products on demand or according to actual requirements. Ju (...truncated)