Written by Tiffany Cunha, GRC & Data Protection Specialist at Palqee Technologies
The European Union has introduced the EU Artificial Intelligence Act, a comprehensive law that regulates the use of AI systems in the EU. In this series, ‘Decoding AI: The European Union’s Take on Artificial Intelligence’, we break down everything you need to know about the law for you.
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Background on the EU AI Act
The European Union's AI Act is a new regulation designed to govern the use of artificial intelligence within the EU. Discussions on the Act began in April 2021 with a proposal from the European Commission. A provisional agreement between the Parliament and the Council was reached in December 2022.
In February 2024, the European Commission established the European Artificial Intelligence Office to oversee the implementation of the AI Act. Additionally, the Internal Market and Civil Liberties Committees voted 71-8, with 7 abstentions, to approve the negotiated outcome with the member states on the AI Act.
The EU AI Act was published in the Official Journal of the European Union in July 2024.
Next Steps
The AI Act comes into force on August 1, 2024, and will be implemented in stages over the course of three years:
February 2025 (6 months): Prohibited AI systems must be removed from the EU market.
August 2025 (12 months): Rules on general-purpose AI models take effect.
August 2026 (24 months): Rules on high-risk AI systems apply, except for those that are AI safety components or products covered by Union harmonisation legislation and require third-party conformity assessment.
August 2027 (36 months): Rules for high-risk AI systems apply.
The European Artificial Intelligence Office will oversee and enforce the Act, ensuring consistent application across the EU.
How Are AI Systems Classified?
The AI Act classifies AI systems into the following categories:
Prohibited AI systems: It prohibits applications and systems that create unacceptable risks, such as government-run social scoring systems,
High-risk AI systems: Applications, like CV-scanning tools for job ranking, are subject to specific legal requirements, and
Applications not explicitly banned or classified as high-risk, such as the systems that interact with humans (chatbots) or generate or manipulate content (deep fakes).
To whom does it apply?
The Regulation applies to:
Providers of AI systems within the EU.
Deployers of AI systems within the EU.
Providers and deployers outside the EU if their AI system's output is used within the EU.
Importers and distributors of AI systems within the EU.
Manufacturers placing products containing AI systems on the EU market.
Authorised representatives of providers not established in the EU.
Individuals in the EU affected by AI systems.
What Is the Impact on International Companies in the EU?
The AI Act's jurisdiction extends beyond the EU's borders to include any company, regardless of location, that places AI systems or AI-enabled products on the EU market, or whose AI systems produce outputs used within the EU.
Therefore, international companies developing or deploying AI systems with any connection to the EU market must ensure their practices align with the AI Act’s requirements.
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