The Act employs a "risk-based approach," applying regulations based on the level of risk an AI system presents. High-risk AI systems are those that could cause significant harm if misused or malfunctioned. These systems must meet strict mandatory requirements before deployment or use. Not all Large Language Models (LLMs) like ChatGPT are automatically considered high-risk under the Act; the classification depends on the intended use, potential harm, and whether it falls under the critical use cases outlined in the Act.
Key takeaways:
- The EU AI Act is designed to foster the growth of trustworthy AI in the EU, with a focus on transparency and protecting citizens' rights, health, and safety.
- The Act introduces a 'risk-based approach', applying regulations based on the level of risk an AI system presents, with high-risk systems subject to strict mandatory requirements.
- The Act applies to any company that develops or utilizes AI systems within the EU, as well as any company outside the EU whose AI systems are intended for usage within the Union.
- Not all Large Language Models (LLMs) like ChatGPT are automatically considered high-risk under the AI Act, the classification depends on its intended use and potential harm.