Effective Date: July 2024
The European Union once again demonstrates its leading role in global technology regulation, this time by passing the world’s first law dedicated entirely to artificial intelligence. The Artificial Intelligence Act (EU AI Act) is a comprehensive initiative aimed at making the use of AI safer, more transparent, and fairer. For many companies and developers, this law presents new challenges but also new opportunities. Let’s explore what it brings and how it will impact the future of technology.
Introduction to the Law: Why Is It Important?
Since the advent of artificial intelligence, humanity has faced a range of issues—from ethical dilemmas to security concerns. The integration of AI into everyday life has proven to be not only beneficial but also in need of significant oversight. As technology evolved, it became clear that AI needs to be regulated as strictly as other critical sectors such as pharmaceuticals or finance. The European Union was the first to take on this challenge seriously.
The EU AI Act is the result of long discussions and the work of hundreds of experts from various fields. Its goal is to create a legal framework that allows for the control and management of AI usage in society, ensuring its safety and compliance with ethical standards.
Risk-Based Approach: From Minimal to Unacceptable
One of the key aspects of the new law is the risk-based approach. European regulators have identified four categories of AI system risks:
Unacceptable Risk: Systems that can cause significant harm to society fall into this category. An example is social scoring, where people are rated based on their online behavior. Such systems are banned by law.
High Risk: AI systems that play a critical role in important areas such as healthcare, justice, or education. They may continue to operate but must meet strict requirements, including continuous monitoring and auditing.
Limited Risk: AI with minimal societal impact, such as chatbots or spam filters. These systems must inform users that they are interacting with AI.
Minimal Risk: AI systems that pose virtually no threat and do not require strict regulation. This includes, for example, music recommendations on streaming services.
High Risk – High Control
Special measures are in place for high-risk AI systems. Their developers are required to adhere to strict rules at every stage of product creation—from design to operation. These systems must be resilient to failures, protected from external threats, and ensure high data processing accuracy.
One of the new requirements is the registration of such systems in the European Digital AI Repository. This will allow EU member states to monitor all AI products that could have a serious impact on society.
Who Is Regulated?
Interestingly, the law applies not only to companies operating within the EU but also to those offering their services in the Union’s territory. This means that if an American or Chinese company sells its AI products in Europe, it must comply with European laws, even if the company itself is registered outside the EU.
Transparency as a Key Factor
The law also requires maximum transparency in the use of AI. Users must be informed that they are interacting with a machine and not a human. This is especially important in situations where AI is used to make significant decisions, such as credit assessments or medical diagnoses. In such cases, users have the right to know that AI was involved in the decision-making process.
Penalties and Sanctions
An important aspect is the enforcement of the law. Violators face severe fines—up to 30 million euros or up to 6% of a company’s global turnover. This underscores the seriousness of the EU’s intentions in AI regulation.
Why Is This Important for Business?
For companies, the law represents both a challenge and an opportunity. On one hand, new requirements may require significant changes in business processes and technologies. On the other hand, compliance with the rules will create conditions for more trustworthy relationships with users and government bodies. Ultimately, companies that can adapt to the new conditions will gain a competitive advantage.
What’s Next?
The EU AI Act is just the beginning. Ahead lies the adaptation of businesses to new conditions, the emergence of new regulations, and possibly even the improvement of existing systems. It is important to note that the law will be continuously refined to keep up with technological developments and new challenges.
With the adoption of the AI Act, the European Union demonstrates its determination to ensure the safety and ethics of technology. This law will be an important step towards sustainable and fair development of artificial intelligence. Businesses working with AI should carefully study the requirements of the new law and take all necessary measures to comply with it. In the coming years, we will see how this law will influence the development of technology and shape a new digital society.
