European AI Act Takes Effect

On August 1, 2024, the European Artificial Intelligence Act (AI Act) officially comes into effect. This landmark legislation is designed to promote the responsible development and deployment of artificial intelligence within the European Union.

Originally proposed by the European Commission in April 2021, the AI Act was finalized by the European Parliament and the Council in December 2023. Its primary goal is to address potential risks to citizens' health, safety, and fundamental rights posed by AI technologies. The Act establishes clear requirements and obligations for AI developers and users, while also aiming to reduce the administrative and financial burden on businesses.

The AI Act sets forth a standardized regulatory framework across all EU member states, utilizing a forward-looking definition of AI and a risk-based classification system:

• Minimal Risk: AI systems like spam filters and AI-powered video games fall into this category and face no obligations under the Act. However, companies can voluntarily adhere to additional codes of conduct.

• Specific Transparency Risk: AI applications such as chatbots must clearly inform users that they are interacting with a machine. Similarly, AI-generated content must be labeled as such to ensure transparency.

• High Risk: High-risk AI systems, including AI-based medical software and AI tools used in recruitment, must meet stringent requirements. These include implementing risk mitigation measures, using high-quality data sets, providing clear user information, and ensuring human oversight.

• Unacceptable Risk: AI systems that pose a clear threat to fundamental rights, such as those enabling "social scoring" by governments or companies, are banned under the Act.

The EU aims to become a global leader in the safe use of AI by building a robust regulatory framework grounded in human rights and fundamental values. The AI Act is expected to foster an AI ecosystem that benefits all. This includes advancements in healthcare, safer and cleaner transportation, and improved public services for citizens. For businesses, the Act encourages innovation in sectors like energy, security, and healthcare, while also boosting productivity and efficiency in manufacturing. Governments stand to benefit from more cost-effective and sustainable services in areas like transport, energy, and waste management.

Recently, the European Commission launched a consultation on a proposed Code of Practice for providers of general-purpose Artificial Intelligence (GPAI) models. This Code, as envisioned by the AI Act, will address critical issues such as transparency, copyright regulations, and risk management. GPAI providers operating within the EU, along with businesses, civil society groups, rights holders, and academic experts, are invited to contribute their insights. These contributions will help shape the Commission's upcoming draft of the Code of Practice for GPAI models.

The provisions related to GPAI will come into effect 12 months from now. The Commission aims to finalize the Code of Practice by April 2025. Additionally, feedback from the consultation will inform the activities of the AI Office, which will oversee the implementation and enforcement of the AI Act's rules on GPAI.

Article source: https://commission.europa.eu/news/ai-act-enters-force-2024-08-01_en

Photo attribution: Bovee and Thill, AI Humans and Robots, CC BY 2.0