The European Union (EU) has proposed an Artificial Intelligence (AI) Act, aiming to regulate AI’s use across the member states. The Act classifies AI systems into three categories: unacceptable risk, high risk, and low to minimal risk. Unacceptable risk AI systems will be banned, while high-risk systems will require conformity assessments before deployment. Low to minimal risk AI systems will have minimal regulatory oversight.
The Act also introduces fines for non-compliance, which could be up to 6% of global turnover or €30 million, whichever is higher. It also establishes a European Artificial Intelligence Board to oversee its implementation.
The Act could impact businesses significantly. The broad definition of AI in the Act could result in many technologies being classified as high-risk, leading to increased costs for businesses. The Act’s extraterritorial nature will also affect businesses outside the EU that sell AI systems in the region.
The Act is currently under review by the European Parliament and Council, with the final version expected to be significantly different from the proposed one. It is vital for businesses to engage with the Act’s development to ensure their interests are represented.
Training data used in AI systems will also be regulated, requiring transparency about its origin and usage. The Act also emphasises the importance of human oversight in AI systems, particularly high-risk ones.
The Act’s introduction is a significant step towards regulating AI, but it also raises several questions about its implementation and impact on businesses.
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