Mohamed Agamy is the founder and managing partner of Links & Gains Law Firm. Mr Agamy is a bilingual lawyer and a driven professional legal consultant with a proven track record of 20 years of leading successful international legal transactions during which he has developed a vast area of expertise across North Africa and the Middle East. He was appointed to expert cross-border associate exclusively for Egypt, particularly in M&As, corporate transactions, commercial litigation; and has expertise in aviation, shipping, logistics and taxation. Mr Agamy was feted as one of the top 50 lawyers in litigation in 2019, and as energy lawyer of the year in 2020 (Leaders in Law).

Chaden Soliman is an attorney-at-law and a member of the legal research unit at Links and Gains law firm, where she works with international clients in the industrial, FMCG and logistics sectors. Soliman is fluent in Arabic, English and French, and has attained practical legal knowledge in many disciplines and branches of law, such as public international law, international investment law and competition law.

1 What is the current state of the law and regulation governing AI in your jurisdiction? How would you compare the level of regulation with that in other jurisdictions?

Egypt is steadily moving towards the integration of new technological advancements, among which is AI, in its regulatory and legal framework. For instance, a law regarding Anti-Cyber and Information Technology Crimes (Law No. 175/2018) was passed in 2018, and a law on the Protection of Personal Data (Law No. 151/2020) was passed in 2020.

Ministerial Decree No. 2889/2019 established the National Council for Artificial Intelligence (NCAI), which adheres to the Egyptian Cabinet and is presided by the Minister of Communication and Information Technology with representatives of various ministries that include the Ministry of Defence, the Ministry of Education and Scientific Research, and the Egyptian General Intelligence Agency.

The decree gives the NCAI the responsibility of outlining and executing the Egyptian AI Strategy by empowering it to issue policies and recommendations to develop the legal framework of AI and to make recommendations as to AI-related laws and regulations.

This is demonstrated by the progress Egypt has made in the Government AI Readiness Index by Oxford Insights and the International Research Development Centre; as it went from an overall score of 45.520 in 2020 to an overall score of 49.75 in 2021.

2 Has the government released a national strategy on AI? Are there any national efforts to create data sharing arrangements?

The National AI Strategy was released by the Egyptian government in 2019. This National Strategy aims at using AI technologies to achieve Egypt’s sustainable development goals and at having Egypt play a central role in the regional and international efforts of the promotion of AI.

Accordingly, the strategy relies on four main pillars: automating governmental processes and integration of AI in decision-making (AI for government); utilising AI to develop economic sectors in Egypt and increase economic growth (AI for development) ;increasing the public’s awareness of AI and providing technical training and education of AI to the Egyptian population (capacity building); and promoting cooperation and playing a key role in the coordination of regional and international efforts in the development and integration of AI (international relations).

The Egyptian government is conscious of the fact that international coordination and cooperation are only possible through research and participation in discussions on an international and regional scale. The National AI Strategy further emphasises the importance of technological exchanges or consultations between governments and their populations, between the public and private sectors, and among international governments.

3 What is the government policy and strategy for managing the ethical and human rights issues raised by the deployment of AI?

On a national level, Egypt has released a ‘National Strategy for Human Rights’ for the years 2021-2026. The Human Rights’ Strategy addresses key issues related to the deployment of AI, including the right to privacy, free speech, non-discrimination and the freedom of peaceful assembly. The strategy is issued by The Egyptian Supreme Standing Committee for Human Rights, which is responsible for monitoring and accessing new human rights issues, among which those raised by the deployment of AI.

Notably, the NCAI works as an adviser for the government regarding the issues of ethical and legal use of AI, it is also responsible for establishing guidelines for the responsible and ethical use of AI and coordinating with the competent bodies to issue the necessary legislation and regulations and educate professionals.

On an international level, Egypt participated in United Nations Educational, Scientific and Cultural Organization (UNESCO)’s Intergovernmental Meeting of Experts to Draft Recommendation on AI Ethics in April 2021, which eventually led to the adoption of the Recommendation on the Ethics of Artificial Intelligence by UNESCO’s General Conference in November of that same year.

The Egyptian Ministry of Communications and Information Technology (MCIT) has additionally participated in drafting one of the most internationally well-known instruments that address human rights’ intersection with AI: the Organisation for Economic Co-operation and Development’s (OECD) Recommendations on the responsible use of AI. Egypt was the first Arab and African country to formally accept the implementation of the recommendations.

4 What is the government policy and strategy for managing the national security and trade implications of AI? Are there any trade restrictions that may apply to AI-based products?

To apply adequate protection of national security and important data; a ‘data classification’ strategy has been implemented. Data is therefore categorised from top secret to confidential, all the way to unclassified, per its sensitivity and the damage its disclosure would cause to national security. This classification ensures that each category of data is met with a sufficient level of protection.

A relevant entity would be the Egyptian Computer Emergency Readiness Team, which responds to attacks targeting the Egyptian information infrastructure and cyber threats.

Law No. 151/2020 on the Protection of Personal Data is also noteworthy since it contains provisions that protect data transfer outside the country unless provided with an adequate degree of protection, and prior authorisation by the Data Protection Centre. Its Executive decree, which would inevitably add provisions regarding the practical application of the law, is expected to be issued by the end of 2022.

5 How are AI-related data protection and privacy issues being addressed? Have these issues affected data sharing arrangements in any way?

The Egyptian government is highly aware of the importance of facing AI-related privacy issues, especially in the most critical sectors; notably fintech, the banking sector, the medical sector and the telecommunications’ sector.

Law No. 151/2020 on the Protection of Personal Data sets data collection and processing conditions. The law further prohibits collecting, transferring, saving or processing sensitive data without a prior licence from the Personal Data Protection Center.

Additionally, the Cybercrime Prevention Law No 175/2018 sanctions unauthorised access to websites and information systems, electronic payment tools hacking and the unlawful interception of information. Such sanctions generally include both imprisonment and the payment of hefty fines.

Most notably, The Egyptian Supreme Standing Committee for Human Rights, in cooperation with The Arab Organisation for Human Rights, launched a conference on the challenges to the right to privacy amid the rapid development of artificial intelligence in July 2022. The conference addressed privacy issues arising from the use of AI, the determination of the responsibility falling upon the state and the private sector to protect data and citizens’ right to privacy and the need for legislation to govern the protection of data.

6 How are government authorities enforcing and monitoring compliance with AI legislation, regulations and practice guidance? Which entities are issuing and enforcing regulations, strategies and frameworks with respect to AI?

Since the implementation of the AI National Strategy is primarily entrusted to the NCAI, which plays a central role in the enforcement and the monitoring of AI deployment rules; it is responsible for recommending legislation and amendments to current legislations that are necessary for the development of AI in Egypt. It is also responsible for the issuance of recommendations to put in place the technical, legal and economic framework of AI application.

As for compliance of AI with human rights in particular, the Egyptian Supreme Standing Committee for Human Rights plays an important role in monitoring the compliance of recommendations issued by international and regional human rights’ bodies, which includes those relating to AI. Additionally, the ‘General Administration for Human Rights’ established within the Egyptian Public Prosecution Office receives and studies complaints and reports relating to human rights and is the competent body responsible for monitoring compliance with international and regional human rights-related rules issued by international and regional bodies.

The compliance of companies to the obligation of joining the E-invoices system is naturally enforced by the Egyptian Taxation Authority and the Ministry of Finance, as its violation is considered tax evasion.

7 Has your jurisdiction participated in any international frameworks for AI?

Playing a key role in international and regional efforts of development of frameworks for AI is in fact one of the main goals of Egypt’s National Strategy.

Egypt is an active participant in the field of AI, taking part in initiatives launched by international and regional organisations such as the OECD, the UNESCO Ad Hoc expert group, the International Telecommunication Union AI summit, the African Union Working Group on AI, the Working Groups of the Global Partnership on Artificial Intelligence and the League of Arab States’ Working Group on AI.

Most recently, Egypt participated in the First Session of the Working Party on AI Governance of the OECD held in May of this year. Egypt has also been a part in the 2021 UNESCO Intergovernmental Meeting of Experts to Draft Recommendation on AI Ethics.

In 2021, Egypt chaired both the Second and the Third Session of the Arab Artificial Intelligence Working Group, which included discussions about AI-enabled Arabic-language processing and building a Common AI Arab Strategy.

8 What have been the most noteworthy AI-related developments over the past year in your jurisdiction?

Perhaps the biggest development of all is the launch of the platform Digital Egypt, offering access to a majority of governmental services including procedures pertaining to electricity, notarisation and real estate registration, among many others. Links and Gains finds Digital Egypt especially useful in the registration and follow-up of claims for its clients. The launch of ‘Digital Egypt’ coincides with the launch of e-services by the Ministry of Interior on its website, which allows citizens to initiate and follow up on proceedings such as the issuance of work permits.

Another noteworthy development in the field of investment; is the E-voting system ‘E-Magles’ used by a number of companies and law firms, namely Links and Gains. Recognised by the Egyptian Exchange and the General Authority for Investment and Free Zones, E-Magles facilitates the decision-making process within companies through enabling shareholders and board members to attend and monitor meetings and vote remotely, while ensuring its transparency and efficiency.

AI additionally plays an important role in fintech; the official website of ‘Fintech Egypt’ powered by the Central Bank of Egypt, highlighted some recent AI innovations in the field of fintech that included credit scoring models, advanced analytics, and quick and scalable graph platforms among others.

On another note, and with cooperation being one of the main objectives in the National AI Strategy, the Egyptian government is initiating several major projects in cooperation with industry giants and foreign governmental entities and universities such as France and Singapore. Most recently, a memorandum of understanding was signed between the Egyptian MCIT and the French company Thales to implement Egypt’s national AI Strategy through the development of applications and the integration of AI in different sectors such as transportation, smart villages, digital infrastructure and digital governance. The cooperation extends to training locals, encouraging creativity as well as supporting companies working in the AI field.

On a similar note, the Egyptian Computer Emergency Readiness Team launched a security awareness campaign, under the direction of the National Telecom Regulatory Authority in October 2022.

9 Which industry sectors have seen the most development in AI-based products and services in your jurisdiction?

Financial services have been the subject of great advancements through the launch of ‘E-Finance’, a digital financial platform playing a key role in the digitalisation of the Egyptian government, with its primary major project The Egyptian Government Financial Network, which processes millions of governmental payments and collections. Next to its e-payment services, the platform also offers operations management, technical support, incident management, field services and consultancy as well as infrastructure, platform and software. E-Finance is therefore involved in many programmes, for example; the development of the digital infrastructure of the Ministry of Agriculture and Land Reclamation, the digitisation of the financial structure of social insurance and pension programmes in addition to many other projects.

Agriculture and tourism certainly come to mind as well, since applications using AI technologies have recently been launched by the government in these sectors; the former capitalises on AI to facilitate communication, distribute information and offer consultations to farmers. As for the latter, this new application uses AI to guide visitors of the Egyptian Postal Museum, facilitate their access to relevant information and offer answers to their questions. An illustration of Egypt’s success is the Egyptian Post Office winning the 2021 Excellence Award for the Best Arab Postal Institution in Digital Transformation during its participation in the ‘Compliance Challenges and Strengthening Correspondent Banking Relationships Forum organised by the Union of Arab Banks.

Development of AI in the health sector is also remarkable; according to a member of the health committee in the Senate, covid-19 has accelerated the digitisation of the healthcare system and the move towards AI integration; through early remote diagnosis, health insurance administration and distribution of patients to hospitals. The Ministry of Health recently unveiled its plans of digitising the healthcare system through the integration of AI hospitals, and the MCIT is collaborating with Alexandria University to use AI for detection of certain diabetes complications.

It is noteworthy that AI education has been a focal point in the implementation of the National AI Strategy; the Egyptian government has concluded several agreements, with companies that include tech giants such as Dell and IBM, to improve the general awareness of citizens and to provide necessary training and education for students as well as those employed in several vital sectors, for example, health, agriculture, irrigation and planning.

10 Are there any pending or proposed legislative or regulatory initiatives in relation to AI?

Since the first phase of the National AI Strategy is expected to be concluded this year, the launch of the second phase, with all of its accompanying legislation and regulations, is highly anticipated. This phase, expected to start in 2023 and last for three years, will focus on expanding the implementation of AI to other key sectors, which include education and banking or financial services. The second phase will further move towards the 2030 vision of a ‘paperless, collaborative and smart’ government and further integrate AI education to students on all levels to provide the market with experienced professionals in preparation for the third phase.

It should be added that, according to the NCAI official website, Egypt is currently working towards adopting the Egyptian Charter on Responsible AI, which would detail Egypt’s plan to ‘adapt the OECD Principles of Responsible AI, and other AI international instruments to its local context and priorities’.

11 What best practices would you recommend to assess and manage risks arising in the deployment of AI?

Due to it being a field still in development; new risks and issues being brought to the surface as a result of the deployment of AI are surely expected.

Therefore, developing adequate monitoring systems to constantly trace and foresee these risks is recommended. And most importantly, a proactive legal structure that prioritises security and addresses all aspects of the implementation of AI and that responds rapidly and attempts to anticipate new risks raised by the deployment of AI remains crucial. Protective provisions need to address resulting implications of AI deployment such as the need for unified identification of users on an international scale, and ensure the protection of remote and freelance workers.

The Inside Track

What skills and experiences have helped you to navigate AI issues as a lawyer?

With Links and Gains being an international law firm that consistently handles a multitude of practices and issues of different backgrounds and several jurisdictions across the globe; our team has developed a skillset and accumulated practical experience on an international scale that allow us to navigate AI-related issues to guarantee its use to serve our clients in the best way possible.

Adapting quickly to change, critical thinking and the ability of preforming advanced legal research are skills that have definitely been useful for the Links and Gains team to have when dealing with AI.

Our firm is rapidly integrating technological systems and services in all areas of its business; from the implementation of services used in legal research, those used in legal drafting all the ways to relying on AI systems in the internal management of the firm.

Which areas of AI development are you most excited about and which do you think will offer the greatest opportunities?

The continuous deployment of AI in the governmental sector and the current efforts made to use it to facilitate legal proceedings are certainly the most interesting to us as a law firm. In fact, Links and Gains has been an active follower of deployment of AI that would serve its clients through fostering strong partnerships with new technologically advanced services such as E-Magles.

With Egypt putting AI education and training to all in the forefront of its AI deployment plan, opportunities in all sectors and areas are definitely expected, especially with the government being conscious of the possibility of incidental unemployment and deploying its best efforts to avoid it and to provide equal opportunities for everyone.

What do you see as the greatest challenges facing both developers and society as a whole in relation to the deployment of AI?

Since AI is complex technology, challenges to its deployment can range from challenges in collecting the necessary data, to ensuring that the new programs offer all the features needed by their users all the way to designing such programs in a user-friendly way.

Challenges to AI deployment on a societal level would include dealing with ethical and human rights issues, providing adequate training to senior employees and preventing unemployment.