Executive Summary

After a marathon discussion, the EU have finalised the terms of their EU AI Act; the world’s first legislation regulating AI development and deployment. An agreement on the terms of the EU AI Act was delayed because of issues with the original draft including the:

• Regulation of General-Purpose AI vs Powerful AI Models
• Regulation of High-risk systems
• Use of Facial Recognition Technology
• Allowance of Source Code Access
• Insurance of commercial viability of the AI industry in nation states.

Outcome

To mitigate issues that delayed agreement, EU parliament have amended the AI Act to include a:

• Two-tier approach to regulating AI models – lesser restrictions for General Purpose AI and stronger restriction for more powerful models.
• Ban of the use of Facial Recognition Technology – with narrow law enforcement exceptions.
• Ban on social scoring algorithms.
• Ban on Algorithms that aim to manipulate human behaviour.
• Ban on the use of AI to profile and exploit vulnerable people.
• Non-compliance fine set at up to €35 million or 7 % global revenue.

Next steps

Now that the contents of the act is agreed, companies who develop or deploy AI, would do well to get a head start on complying with the Act because it sets an International Gold Standard for AI development and deployment. This means that if the standard set by it is met, your product will be:

• deemed as safe, reliable, transparent, and trustworthy.
• more widely marketable and profitable.

Early compliance will provide you a competitive advantage over those who do not prepare and insure you against fines for non-compliance. As a result:

• Companies with connections in the EU, who develop or deploy AI, especially High-Risk systems, should begin immediately to consider how to align their AI Approach with the new EU rules.
• Companies who currently develop AI, who wish to sell their product in the EU, should look to align their development practices with those set by the EU to ensure that they are able to do this.

How can we help?

If you’d like a briefing on the EU AI Act, help to understand how it may apply to AI that you develop or deploy, or if you are looking to get a head start towards meeting this new gold standard then we, at AIPRIVSEC, can help you.

Get in touch via this link

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DISCLAIMER

This document is intended to be read for reference only.

It is not intended as legal advice and should not be acted on as if it is.