Federal Council decides on regulatory approach to AI in Switzerland 

In order to preserve and enhance its international competitiveness, Switzerland must maintain international compatibility and stay true to its established principles of technology-neutral, principles-based and targeted regulation, with a particular emphasis on creating and exploiting scope for innovation and progress. We therefore welcome the Federal Council’s decision to proceed with care, and enact legislative amendments to complement the existing legal framework only where this is necessary.   

Innovation-friendly framework is crucial  

Technological developments in the field of AI are of great importance to Switzerland as a centre of innovation and technology. The country can and should play a pioneering role in the development of AI technologies and applications. Success hinges on a powerful and secure infrastructure, high-quality, reliable data, the promotion of research and digital skills, the availability of qualified personnel and broad acceptance within society but also, and especially, a legal and regulatory framework that is conducive to innovation.  

Given the wealth of data at its disposal, the financial market in particular is a highly promising field for the deployment of AI. Banks are proceeding with great care, and are currently focusing in particular on applications in transaction monitoring to, for example, combat money laundering, detect and prevent fraud, identify clients, automate the processing of documents and more, and query internal knowledge databases. They have extensive experience of handling data confidentially and managing operational risks. The financial market already has effective, proportionate and risk-based rules in place that also apply to the use of AI. It would be worthwhile to examine whether these could be established across all sectors of business with a view to securing fair competition, something from which people and companies in all sectors would benefit.  

Maintaining established regulatory principles  

We welcome the Federal Council’s intention to preserve the economic freedom of private parties and remain true to the established principles of technology-neutral, principles-based and targeted regulation. Switzerland does not need exhaustive, detailed and complex regulations such as the EU AI Act, which came into force on 1 August 2024. Legal standards should wherever possible be designed in such a way that they can be applied across all technologies. There is also no need to cover every possible set of circumstances; all that is required is objectives or principles. This will allow new technological developments to be taken into account – where necessary and subject to a prior regulatory impact assessment – by means of targeted legislative amendments to address risks that are new or are significantly increased by the use of the technology.  

The development and application of AI do not take place in a legal vacuum. Given the technology-neutral and principles-based nature of Swiss law, the existing and generally applicable rules (e.g. legislation on data protection, the financial markets, personality rights, fair competition and copyright) must also be complied with in the development and use of AI. These are largely sufficient as a basis.  

In our view, the challenge when developing and using AI is to be found mostly in the implementation of existing laws and regulations by means of technical and organisational measures that take sufficient account of the technology’s particular features.  

Constructive dialogue with a view to future-oriented regulation  

The SBA will analyse the federal government’s overview and the Federal Council’s policy decision in depth and, in dialogue with politicians, authorities and other sectors, will continue to participate actively and constructively in the ongoing discussions surrounding the regulation of AI in order to achieve a regulatory outcome that is viable and future-oriented.