Europe Reaches Landmark Deal on World’s First Comprehensive AI Act

European Union officials have finalized a political agreement on the AI Act. This groundbreaking legislation is the first of its kind globally. It aims to regulate artificial intelligence based on its potential for harm.

The deal was reached after nearly 40 hours of intense negotiations. According to Reuters, the law establishes a comprehensive legal framework for AI development and use. It directly addresses powerful foundation models like ChatGPT.

How the Landmark AI Legislation Will Work

The EU AI Act operates on a risk-based pyramid. Applications deemed an “unacceptable risk” face an outright ban. This includes social scoring systems and certain types of predictive policing.

High-risk AI uses, like those in critical infrastructure and medical devices, face strict obligations. These include rigorous risk assessments and high-quality data sets. Citizens will have a right to launch complaints.

Most AI systems, like spam filters, are considered minimal risk. They will face few to no new constraints. The law creates specific rules for general-purpose AI models, requiring transparency about their training data.

Enforcement and Global Impact of the New AI Rules

The new rules carry significant financial teeth for non-compliance. Violating the banned applications provisions could lead to fines of up to €35 million. That is a figure confirmed by the Associated Press.

This legislation is expected to set a global benchmark, similar to the EU’s GDPR data law. Companies outside the EU will need to comply if they want to access the bloc’s vast single market. This gives the rules immense international influence.

Analysts suggest the law could spur innovation in trustworthy AI within Europe. It also forces global tech giants to adapt their products. The final text is expected to be formally adopted in early 2024.

The EU AI Act establishes a new global standard for artificial intelligence regulation, balancing innovation with fundamental rights and safety.

Thought you’d like to know

What AI systems are banned under the EU AI Act?

The law bans AI systems considered a clear threat to safety and rights. This includes biometric categorization using sensitive characteristics and untargeted scraping of facial images. It also prohibits social scoring by governments and AI that manipulates human behavior.

How will the AI Act affect companies like OpenAI and Google?

Developers of powerful general-purpose AI models will face transparency requirements. They must provide detailed summaries of the content used for training their systems. They also must implement cybersecurity measures and report their energy consumption.

When will the EU AI Act officially become law?

The political agreement is provisional, pending final legal checks and formal adoption. According to the European Parliament, the law is expected to be fully applicable 24 months after it enters into force, with some bans applying sooner.

What are the fines for breaking the AI Act rules?

Fines are tiered based on the violation and the company’s size. The most severe breaches can lead to fines up to €35 million or 7% of global annual turnover. Lesser violations have lower maximum fines.

Why did the EU create this law?

The EU aims to ensure AI developed and used in Europe is safe and respects fundamental rights. The goal is to foster public trust and legal certainty for businesses. Officials want to make Europe a leader in human-centric AI governance.

Trusted Sources

European Parliament, European Commission, Reuters, Associated Press, Bloomberg.