The EU AI Act is a groundbreaking regulation set to standardize AI application across Europe. Introduced by the European Commission and approved by Parliament in March 2024, this Act aims to safeguard consumers while fostering technological innovation. With its enforcement starting between 6 to 36 months post-adoption, anticipated by May 2024, the Act ensures rigorous oversight of high-risk AI technologies, marking a significant step in the global regulation of artificial intelligence.
Companies should closely follow the EU AI Act, as it has the potential to become the global standard for ethical AI development and use. Similar to how GDPR transformed data privacy regulations, the AI Act sets out a framework for governing high-risk AI systems across various sectors, from healthcare and law enforcement to online content moderation. This focus on ethical AI is already shaping AI policy discussions worldwide.
Non-compliance with the Act can result in hefty fines, reaching up to €35 million or 7% of a company's global turnover, whichever is higher. Therefore, compliance with the Act is not just a matter of ethics, but also a strategic necessity for companies operating in the EU or with global reach.
AI systems under the Act are assigned to one of three distinct risk categories:
AI systems that pose an unacceptable risk to safety and rights are strictly prohibited. These include technologies that compromise privacy, human dignity, or autonomy. Ensuring no deployment of such high-risk AI. Learn more here.
AI systems identified as high-risk must adhere to stringent design and operational standards. These systems undergo rigorous checks to guarantee compliance with safety and ethical standards, ensuring they are secure and trustworthy before deployment.
AI systems with minimal risk face no mandatory regulatory constraints, promoting innovation and rapid development. Such systems can be deployed freely, fostering technological advancement with lower oversight.
There are also additional and more specific obligations for the providers of AI systems with certain transparency risk and general-purpose AI models.
Find out how the EU AI Act impacts your business by using our EU AI Act risk calculator tool. Please use this calculator for each AI system in your company.
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