EU’s AI Act to Enter Into Force Next Month

Europe’s groundbreaking AI Act will take effect next month following endorsement from EU countries on Tuesday.

The comprehensive legislation was initiated by the European Commission in 2021. EU lawmakers later refined it to establish a global standard for AI technology. The Act contrasts sharply with the United States’ more lenient approach and China’s focus on social stability and state control.

The legislation addresses growing concerns about AI’s potential to spread misinformation, fake news, and copyrighted material, fueled by the rise of generative AI systems like OpenAI’s ChatGPT and Google’s Gemini. It emphasizes trust, transparency, and accountability while fostering innovation within Europe.

Key provisions include stringent transparency requirements for high-risk AI systems and lighter obligations for general-purpose AI models. Expected to have a global impact, the AI Act will affect companies outside the EU that use EU customer data, potentially serving as a blueprint for other regions, similar to the GDPR.

The Act also restricts real-time biometric surveillance by governments to specific serious crime scenarios, with particularly important implications regarding the use of facial recognition.

The legislation’s staggered implementation schedule begins in six months with bans on AI in social scoring, predictive policing, and untargeted facial image scraping. General-purpose AI model obligations will follow in 12 months, and AI systems in regulated products in 36 months. Penalties for non-compliance range from €7.5 million or 1.5 percent of turnover to €35 million or seven percent of global turnover, depending on the violation.

Source: Reuters

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May 21, 2024 – by Cass Kennedy