Europe Leads the Way in Artificial Intelligence Regulation
Europe took a major step towards implementing the world’s first artificial intelligence rules, with EU lawmakers endorsing a provisional agreement for the groundbreaking AI Act. This legislation will have a significant impact on the rapidly growing use of AI across various industries and in daily life.
What Does the AI Act Cover?
The AI Act will regulate foundation models and generative AI, such as Microsoft-backed OpenAI, which are trained on large datasets to create new content and perform tasks. It will also restrict governments’ use of real-time biometric surveillance in public spaces, allowing it only in cases of specific crimes or threats.
Transparency and Compliance
The rules will apply to high-impact, general-purpose AI models and high-risk AI systems, which must meet transparency obligations and adhere to EU copyright laws. A total of 523 EU lawmakers voted in favor of the agreement, emphasizing the importance of establishing a comprehensive framework for trustworthy AI.
Global Implications
EU industry chief Thierry Breton hailed the EU’s role as a global standard-setter in trustworthy AI, as other countries and regions are likely to use the AI Act as a blueprint for their own regulations. While Brussels may have set the benchmark, companies will face considerable red tape in complying with the new rules.
Enforcement and Penalties
EU countries are expected to formally approve the deal in May, with the legislation set to take effect in 2026. Companies found in violation of the AI Act could face fines ranging from $7.5 million to $35 million, depending on the severity of the offense. The European Parliament and EU countries reached a preliminary agreement after lengthy negotiations, paving the way for a new era of AI regulation.