The Act does not create new laws around data collection, but requires companies to follow GDPR guidelines. It also does not clarify how companies should handle copyrighted material used in model training data. The Act will not apply to open-source developers, researchers, and smaller companies, a decision that has been praised by the open-source community. The Act could pressure other countries, particularly the US, to accelerate their own AI regulations. Despite being home to major AI companies, the US has struggled to establish AI regulation. The AI Act is seen as a significant moment for AI governance, but changes are not expected to be immediate.
Key takeaways:
- The European Union's AI Act, first proposed in 2021, has not yet been fully approved and its impact on AI companies remains unclear. The Act is expected to take effect around 2025.
- The Act divides its rules based on the level of risk an AI system has on society, with stricter rules for higher risks. However, some member states have expressed concerns that this could make the EU an unattractive market for AI.
- The Act does not create new laws around data collection, but requires companies to follow GDPR guidelines. It also does not apply fines to open-source developers, researchers, and smaller companies working further down the value chain.
- While the AI Act is not yet finalized, it indicates the direction the EU wants to go in terms of AI regulation. It does not retroactively regulate existing models or apps, but future AI developments will need to take into account the transparency requirements set by the EU.