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Legal Horizons of AI in Egypt: Challenges and Prospects

The integration of AI in Egypt’s business sector signifies a transformative era in technological advancement. AI technologies, ranging from machine learning algorithms to advanced data analytics, are revolutionizing how Egyptian businesses operate, offering new opportunities for innovation and efficiency. This integration, however, also brings forth a multitude of legal challenges and considerations that need careful navigation.

Egypt’s journey towards embracing AI reflects a broader global trend. As businesses in Egypt adopt AI for various applications, including customer service, market analysis, and operational automation, the need for a robust legal framework becomes increasingly evident. This framework must address the unique characteristics of AI while ensuring that the technology’s deployment aligns with national laws and ethical standards.

Legal Framework Governing AI in Egypt

Currently, Egypt’s legal system is adapting to the complexities introduced by AI technologies. While specific AI legislation is still in its infancy, existing laws, such as the Telecommunication Regulation Law (Law No. 10 of 2003), indirectly govern aspects of AI. This law, primarily focused on telecommunication services, also touches upon digital data management, an essential component of AI operations.

Additionally, the Egyptian Data Protection Law (Law No. 151 of 2020) plays a crucial role in regulating AI. This law, modeled after the European Union’s General Data Protection Regulation (GDPR), sets standards for data privacy and security, directly impacting AI systems that process vast amounts of personal data. It mandates consent for data collection, a significant factor in AI’s functionality, especially in consumer-facing applications. It is considered that Egypt’s AI market stands at USD 785 million and is growing at a rate of 17.18% annually. 

AI and Intellectual Property Rights

The intersection of AI with intellectual property (IP) rights presents unique legal challenges. One primary concern is the determination of ownership and control over AI-generated content and inventions. Egyptian IP laws, such as the Intellectual Property Protection Law (Law No. 82 of 2002), currently do not explicitly address AI-generated works. This ambiguity raises questions about copyright ownership, patentability of AI creations, and the protection of trade secrets in AI algorithms.

Furthermore, as businesses increasingly use AI for creative or innovative processes, the need to update IP laws to accommodate AI’s role becomes evident. This includes redefining the concepts of authorship and inventorship to fit AI scenarios and ensuring that IP laws encourage innovation while protecting legitimate rights. It is important to consider that the issue of AI and IP law in Egypt has never been raised in front of an Egyptian court.

Data Protection and Privacy in the AI Era

Data protection and privacy are at the forefront of legal considerations surrounding artificial intelligence in Egypt. The Egyptian Data Protection Law (Law No. 151 of 2020), influenced by the GDPR, addresses critical aspects of data privacy that directly affect AI systems. This law mandates strict guidelines for data collection, storage, and processing, all of which are integral to AI operations in various sectors. Businesses utilizing AI in Egypt must ensure their AI systems comply with these regulations, particularly in terms of securing user consent and safeguarding personal data.

The implementation of AI technologies often involves processing vast quantities of data, raising concerns about user privacy and data security. Compliance with the Data Protection Law requires businesses to implement robust data governance frameworks. This includes regular audits, transparent data processing policies, and strong cybersecurity measures to prevent data breaches, which are crucial for maintaining consumer trust and legal compliance.

AI in Employment and Labor Laws

The integration of AI in Egypt’s workforce presents both opportunities and challenges. AI’s potential to automate tasks can lead to increased efficiency but also raises concerns about job displacement. The Egyptian Labor Law (Law No. 12 of 2003) currently does not specifically address the implications of AI on employment. However, it is crucial for businesses to consider the ethical and legal ramifications of replacing or supplementing human labor with AI.

AI’s role in decision-making processes, particularly in hiring, promotions, and terminations, introduces legal complexities. Ensuring that AI-driven decisions in the workplace comply with existing labor laws, including non-discrimination and fair treatment, is essential. As AI in Egypt continues to evolve, there may be a need for amendments in labor laws to address the nuances of AI in employment, ensuring that workers’ rights are protected in an increasingly automated business landscape.

Ethical Considerations and AI in Business Practices

Ethical considerations are paramount in the deployment of AI technologies in Egyptian businesses. AI systems, while efficient, can sometimes operate as ‘black boxes’ with decision-making processes that are not transparent. This raises ethical concerns, particularly in areas such as consumer privacy, data security, and fairness in AI decision-making. Establishing ethical guidelines for AI use, aligned with global best practices, is essential for businesses in Egypt.

Corporate governance plays a critical role in managing these ethical challenges. Companies must develop ethical frameworks for AI use, ensuring that AI systems are designed and deployed responsibly, respecting human rights as well as culture and ethical norms.

Comparative Analysis with Global AI Legal Frameworks

The Egyptian government has taken strides in researching AI and its effects on Egypt’s society and economy. In 2019, the Egyptian Government established the National Counsel for Artificial Intelligence, which is tasked with developing Egypt’s national AI strategy.

Comparing Egypt’s approach to AI regulation with global frameworks reveals both similarities and differences. Countries around the world are grappling with similar challenges in regulating AI, and Egypt can learn from their experiences. For instance, the European Union’s AI Act provides a comprehensive framework that addresses various aspects of AI deployment, including risk assessment, transparency, and data governance. Egypt’s AI legal framework can benefit from such comprehensive and holistic approaches, adapting global best practices to the local context. It is likely that Egypt will implement specific AI legislation that mirrors


As AI in Egypt continues to evolve, there is a need for ongoing legal and regulatory development. This includes updating existing laws and introducing new regulations that address the unique challenges posed by AI technologies. Embracing AI’s potential while mitigating its risks requires a balanced approach, combining legal rigor with ethical considerations and global best practices.

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Written By

Joseph Iskander - Attorney-at-law

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