Month: October 2023

Month: October 2023

Artificial Intelligence and the Law

The surge in interest surrounding the implementation of artificial intelligence (AI) solutions to enhance efficiency and gain a competitive edge is the latest trend. However, concerns about legal compliance, particularly in light of pending EU regulations addressing AI, are of utmost importance.

Artificial Intelligence Regulatory Landscape

Currently, there exists no universally applicable legislation imposing specific obligations related to AI. However, this is expected to change in the near future. The finalization of the core act, known as the “Artificial Intelligence Act,” which establishes standardized rules on AI, is scheduled for later this year. The Commission, Parliament, and Council are currently engaged in negotiations to determine the final wording of this act. It will primarily impose obligations on both AI system providers and entities using AI systems under their control.

The Artificial Intelligence Act aims to establish a legal framework for the development and deployment of AI systems within the EU. Its primary objective is to ensure that AI technologies are employed in a manner that is transparent, accountable, and respects fundamental rights and values.

Common Concerns about Artificial Intelligence

In addition to regulations specific to AI, it is crucial to analyse AI usage within the framework of existing legislation. Frequently raised questions include:

  • Determining ownership rights over AI-generated outputs (completions) and establishing usage protocols, including the consequences of integrating such outputs with the client’s proprietary solutions.
  • Allocating liability for intellectual property infringements resulting from the use of AI solutions and completions/materials generated by generative AI (e.g., identifying the entity responsible for copyright claims when third-party materials were used in training models).
  • Addressing potential access by the AI system provider to data inputted into the model, particularly during content analysis and filtering to ensure proper usage.
  • Utilising client data for further training of the provider’s models.
  • Ensuring compliance with GDPR, especially in terms of upholding data subject rights and implementing requirements related to automated data processing (including profiling), as well as addressing issues of inaccurate personal data generated by AI solutions.

Solutions to these concerns can primarily be found within the contract with the AI system provider and technical documentation detailing data flow or service configuration options.

Furthermore, evaluating necessary adjustments within the client’s organisational structure is crucial to ensure lawful AI usage and mitigate solution-specific risks (e.g., over-reliance on AI systems or potential misinterpretations by AI solutions). These efforts often involve formulating appropriate usage policies for AI, updating data protection documentation, and implementing protocols for human oversight of AI-generated content.

When identifying legal risks and their solutions, it is worth remembering that there are considerable differences not only between different versions of AI solutions but – most importantly – between AI service providers, especially regarding the ways in which they regulate the above issues in their contracts or in the architecture of their services. The situation in this area is often very dynamic – for example, recently Microsoft published the Microsoft Copilot Copyright Commitment which states that, starting October 1st, Microsoft will extend existing contractual liability rules for intellectual property infringement with regard to commercial Copilot services and Bing Chat Enterprise. As a result of the above, Microsoft will defend the customer and pay any amounts awarded in adverse judgments/settlements in the event that the client is sued by a third party for infringement of intellectual property rights through the use of Copilot services or the generated responses (excluding trademarks). To benefit from the above, it is necessary to use the protections and content filters built into the services by Microsoft and not to use the services intentionally to create infringing materials. The obligation to defend against claims related to the use of AI-generated content by AI systems is undoubtedly an important change in the approach to the client, and may facilitate any decision regarding using AI.

Implementing AI is already possible Despite many valid points regarding the risks of using AI, what is common for new technologies, it should not be assumed, without further analysis, that implementing such systems in an organization is currently not possible, particularly given the still-ongoing work on the AI Act. The regulations which are in force in Poland do not generally prohibit the use of such solutions. However, it is important to approach this topic thoroughly, including by properly defining the rights and obligations of the user and the AI solution provider, defining the ways in which AI solutions can be used in the organization as well as adjusting internal procedures. Many entities are already using this technology in their daily work, showing many interesting applications of AI (e.g. efficient document review, performing summaries and analysis of large amounts of text) and how many further benefits it can bring.

Housing affordability: What Can an Average Salary Buy in Terms of Square Meters of Housing in Poland?

Examining Housing Affordability in Poland’s Largest Cities

In the realm of housing demand and affordability, Poland mirrors global concerns. A recent study by RynekPierwotny.pl delved into the housing markets of the ten largest Polish cities, gauging how many square meters of real estate an average salary can secure. The findings, listed in ascending order of affordability, are as follows:

Source information – Click here.

Katowice—0.87 square meters.

Bydgoszcz—0.77 square meters.

Poznan—0.72 square meters.

Gdańsk—0.72 square meters.

Łódź—0.69 square meters.

Lublin—0.68 square meters.

Kraków—0.66 square meters.

Wrocław—0.66 square meters.

Szczecin—0.63 square meters.

Warsaw—0.59 square meters.

A stark disparity emerges, with Warsaw standing as the least accessible city to purchase a home. Here, only 0.59 square meters of residential real estate can be acquired for an average salary.

High earnings

Interestingly, high earnings don’t always align with elevated housing prices. Katowice serves as an example, where earnings are relatively high, yet housing costs remain modest. Conversely, Szczecin presents the inverse scenario, with lower wages but real estate options tailored towards wealthier clientele.

Of note are Gdańsk and Bydgoszcz, shining in terms of housing affordability, boasting 23 properties per thousand inhabitants. In contrast, Szczecin faces a less favorable situation, offering only 12 properties per thousand residents.

Keeping an eye on the housing market reveals intriguing shifts. Over the past year, Katowice, Lublin, and Łódź saw a notable surge in real estate options, with increases of 34%, 17%, and 5%, respectively. Conversely, cities like Warsaw, Kraków, Gdańsk, and Poznań witnessed a decline in available housing opportunities.

Real Estate And Construction Law

Our experience in real estate and construction law matters includes:

  • Representing investors with the purchase and sale of real estate;
  • Representing landlords and tenants in lease and sale-and-lease back real estate transactions;
  • Representing developers in commercial and residential projects;
  • Organizing and conducting due diligence reviews;
  • Representing clients in proceedings to obtain permits and administrative decisions in the construction process;
  • Advising in connection with the development of structure and finance documents under various investment projects;
  • Advising on and defending against restitution claims;
  • Advising on corporate aspects of all transactions;
  • Advising on construction issues (contentious and non-contentious), land use, planning, permitting and environmental issues;
  • Drafting and negotiating agreements and other documentation required in the investment or construction process.

As it is very important that every transaction, investment project or any other decision we make is tax efficient and tax secure we also advise our clients on taxation of numerous real estate transactions (e.g. purchase / sale of land real estate & building real estate).

Demographic Struggles: Poland Anticipates Significant Population Decline by 2060

Poland, much like numerous other nations, grapples with significant demographic hurdles. According to projections from the Central Statistical Office of Poland, the country’s population could dwindle by nearly a third, reaching 27 million people by 2060. Let’s delve into the factors influencing this process.

Present Demographic Landscape

As of the close of the previous year, Poland was home to 37.7 million inhabitants. Projections suggest that by 2060, the population may diminish by anywhere from 8% to 29%, contingent on the scenario.

Diminishing Birth Rate

Between the onset of this year and June 2023, Poland welcomed 139.5 thousand new-borns, marking the lowest count since the conclusion of World War II. Experts foresee further deterioration. Under the pessimistic scenario, by 2060, the count of new-borns might plummet by half, totalling just around 152 thousand.

The dwindling fertility rate also influences the demographic panorama. In 2022, the rate stood at 1.26, and forecasts indicate it could decline to 1.19. Notably, these figures fail to meet even the minimal criteria for straightforward generational succession, necessitating a coefficient of 2.1.

Effects of Abortion Legislation

The reduction in the count of women within reproductive age groups adds to this predicament. In recent years, shifts in Polish legal frameworks, notably the tightening of abortion regulations, have negatively impacted the demographic scenario. These changes may impede family planning and heighten the risk of clandestine procedures.

The Role of Immigration

To counterbalance population decline and sustain economic vitality, Poland must actively allure immigrants. As of June 2023, the nation boasted over a million foreign laborers, primarily hailing from Ukraine. However, competition with neighbouring nations like the Czech Republic, Slovakia, and Germany could exacerbate the situation, potentially diminishing Poland’s appeal to prospective immigrants.

Aging Population

With a reduction in the number of working-age citizens and an upswing in retirees, Poland confronts substantial challenges in the realms of healthcare and social security. The count of individuals aged 65 and above could surge by over 80%, placing substantial strain on healthcare and pension systems.

By 2022, for every 100 working-age individuals, there were 70 who were not in the workforce. However, according to the “medium” scenario, by 2060, the ratio could skew towards 105 working-age individuals for every 100 non-working individuals.

Poland Implements Reduced Rates for Late Payment Interest

Late payment interest

On September 15, 2023, Poland released an Announcement from the Ministry of Finance regarding the interest rates for tax arrears and late payments. This announcement includes the following reductions in interest rates:

Source information: https://www.dziennikustaw.gov.pl/MP/2023/1017

Late payment interest rates

The standard rate has been lowered from 16.5% to 15.0% per annum.

The reduced rate has been decreased from 8.25% to 7.50% per annum.

The increased rate has been brought down from 24.75% to 22.50% per annum.

Reduced rate

The reduced rate is applicable when a taxpayer initiates self-correction prior to receiving a notice of procedures for an amended assessment, and the payment is made within 7 days of filing the corrected return. Conversely, the increased rate is enforced for VAT and customs duties, including situations where a taxpayer understates their tax liability, overstates an overpayment or refund claim, or neglects to file a return and pay tax, and this is discovered during tax control proceedings.

For further information about late payment interest or any other tax matters, please contact Bernard.

Tax Lawyer Poland

If you are looking for a tax lawyer in Warsaw, our law firm can help you. The tax landscape in Poland is forever evolving, particularly when dealing with cross-border and local tax regulations and this presents businesses and individuals with a significant challenge. Recently, there has been a noticeable increase in the number and complexity of tax investigations conducted by authorities and it is expected that enforcement will continue to gather pace.

The requirement for tax adjustments and a multi-disciplinary approach to maximise tax effectiveness is rising accordingly. The law firm of Bernard Łukomski has in-depth knowledge and expertise in national and international tax laws and we advise our clients in all aspects of personal and corporate income taxes, VAT, excise duty, transfer tax, stamp duty, real estate tax, tax disputes, social security, and fiscal criminal law.

Email / Tel

bernard.lukomski@kpbl.pl

+48 608 093 541 (Mobile)

+48 692 802 229 (WhatsApp)