The EU Artificial Intelligence Act, which came into force on August 1, sets strict rules regarding the use of AI for facial recognition, safeguards for general-purpose AI systems, and protection of consumer rights to submit complaints and request explanations for decisions made with high-risk AI systems. The legislation aims to ensure safe and ethical use of AI in the EU, with transparency requirements for developers of foundation AI models like ChatGPT.
The EU Parliament voted in favor of the AI Act on March 13, 2024, and it was officially published in the European Union’s Official Journal on July 12, 2024. The Act will be implemented in phases, with bans on prohibited practices taking effect six months after the entry into force, general-purpose AI rules after 12 months, and obligations for high-risk AI systems after 24 months and 36 months for high-risk systems subject to EU health and safety legislation.
The legislation categorizes AI systems based on their level of risk and impact on citizens, banning certain use cases such as biometric categorization and emotion recognition in the workplace. Companies that fail to comply with the AI Act face fines ranging from €7.5 million to €35 million or a percentage of their global turnover.
To ensure compliance with the AI Act, businesses are advised to produce an inventory of AI systems, update governance frameworks, assess risks associated with AI systems, and consult with legal and AI experts. Developers of high-risk AI systems must meet obligations set by European lawmakers, including assessments of how their AI systems impact citizens’ rights.
The AI Act marks a significant moment for the AI industry, with the EU aiming to set a global precedent for AI regulation. However, some critics argue that the legislation does not go far enough to protect citizens’ rights and prevent misuse of AI systems. Organizations like IBM and Salesforce have commended the EU for its initiative, while also preparing tools and services to help other firms comply with the new regulations.
Overall, the AI Act represents a step towards responsible AI use in Europe, with the aim of balancing innovation with ethical standards and protection of citizens’ rights.
