EU Takes Lead in Regulating AI with Landmark Legislation
Widespread and rapid technological development has seen explosive growth in the deployment of Artificial Intelligence (AI) in markets across the globe. AI is becoming an instrumental part of human society, revolutionizing many aspects of life. With the many benefits AI provides, there is also a risk that the technology could produce unintended harms or be used in negative, or even unlawful ways.
On 21 of May 2024 The European Union has taken a historic step by passing the world's first comprehensive set of rules governing Artificial Intelligence (AI). This groundbreaking legislation, the EU AI Act, aims to strike a balance between harnessing the potential of AI and mitigating the risks it may pose.
Key Provisions of the EU AI Act
Risk-Based Approach: The Act categorizes AI systems based on their potential for harm. High-risk systems, like those used in facial recognition, face very strict regulations, such as undergoing a fundamental rights impact assessment, and obligations to gain access to the EU market. Lower-risk systems, like chatbots, require lighter transparency measures.
Focus on High-Risk Systems: These systems must undergo rigorous assessments to ensure they comply with fundamental rights and avoid discrimination.
Regulation of Biometric Identification: Law enforcement can only use real-time biometric identification in public spaces for specific purposes, such as preventing terrorism or finding missing persons.
Transparency for General Purpose AI: Developers of large language models or "foundation models" must provide technical documentation and ensure their training data complies with copyright laws. High-impact models will require additional risk assessments and reporting.
Prohibited Uses of AI: The Act bans certain applications deemed unethical or harmful, such as social scoring systems, manipulation of human behaviour, and emotion recognition in educational settings.
Enforcement and Oversight
A dedicated AI Office within the European Commission will oversee enforcement.
An AI Board with representatives from EU member states will assist in implementing the legislation.
Companies face significant fines for violating the Act, ranging from €7.5 million to 7% of their global turnover.
The obligations under the Act will be phased in over a period of 36 months, with the key obligations in place within 24 months.
The Department of Enterprise, Trade and Employment is leading the national implementation of the AI Act. The department is currently assessing, in conjunction with other government departments and public authorities, alternative possible approaches to national implementation to determine the optimal national structure for efficient and effective enforcement of the provisions of the Act.
The EU AI Act represents a significant step towards responsible AI development. It could potentially serve as a model for other countries looking to regulate this powerful technology.