The EU AI Act applies not only to those developing AI platforms but also to a wide range of stakeholders, including distributors. Importantly, it also applies to US businesses deploying AI-based products or services available to anyone located in the EU. As such, many businesses will need to review their AI systems for compliance and establish policy and procedural frameworks to avoid the substantial fines associated with breaches of the Act.
Key takeaways:
- The European Union has approved the world's first major set of legislation to regulate the use of AI, known as the EU AI Act, which is expected to come into force in May 2024.
- The EU AI Act classifies AI Systems into four categories based on risks: Unacceptable Risks, High Risks, Low/Limited Risks, and Minimal Low Risks, with regulations ranging from total prohibition to voluntary codes of conduct.
- The Act covers a wide range of stakeholders, from developers to distributors, and sets out clear requirements for risk management systems, technical documentation, human oversight, and a certification standard of compliance for high-risk AI systems.
- Sanctions for breaches of the Act are serious, with fines ranging from €15m to €35m or 1 to 7 per cent of annual worldwide turnover. US businesses deploying AI-based products or services available to anyone in the EU will also have to comply with the EU AI Act.