World's first major AI law enters into force — here's what it means for...
The European Union's landmark artificial intelligence law officially enters into force Thursday — and it means tough changes for American technology giants. Free 24/7 Connecticut news stream: Watch NBC CT wherever you are
Overview of the AI Act
The AI Act, a landmark rule that aims to govern the way companies develop, use and apply AI, was given final approval by EU member states, lawmakers, and the European Commission in May. This regulation sets out a comprehensive and harmonized regulatory framework for AI across the EU.
Impact on Technology Companies
The AI Act will primarily target large U.S. technology companies, which are currently the primary builders and developers of the most advanced AI systems. However, plenty other businesses will also come under the scope of the rules — even non-tech firms.
Regulatory Measures
The legislation applies a risk-based approach to regulating AI, with different applications of the technology being regulated depending on the level of risk they pose to society. For high-risk AI applications, strict obligations will be introduced, including risk assessment, high-quality training datasets, routine logging of activity, and mandatory sharing of detailed documentation with authorities.
Prohibited AI Applications
The law imposes a blanket ban on applications of AI deemed "unacceptable" in terms of their risk level. Examples include "social scoring" systems, predictive policing, and the use of emotional recognition technology in the workplace or schools.
Impact on Global Tech Giants
U.S. giants like Microsoft, Google, Amazon, Apple, and Meta will be heavily impacted by the new rules due to their involvement in AI development. Cloud platforms such as Microsoft Azure, Amazon Web Services, and Google Cloud will also play a crucial role in supporting AI development.
Enforcement and Penalties
Companies that breach the EU AI Act could face fines ranging from 35 million euros ($41 million) to 7% of their global annual revenues. Oversight of AI models falls under the European AI Office, a regulatory body established by the Commission.
Future Implications
With the AI Act now in force, it will bring increased scrutiny on tech giants operating in the EU market and their use of EU citizen data. The law aims to encourage innovation while prioritizing the safe development and deployment of AI technology.
