AI Act and the Automotive Industry – Where does the road lead?
The AI Act introduces a transformative regulatory framework aimed at the integration of artificial intelligence within the automotive industry. As AI technologies advance, they enhance the capabilities of automated and assisted driving systems, but they also introduce a range of risks that could impact individual rights and safety on the road.
Current Legal Framework for AI in the Automotive Industry
Autonomous and automated vehicles (AVs) in the EU are governed by various regulatory frameworks. Key regulations include the Type-Approval Framework Regulation (TAFR), which focuses on automotive standards, and the General Product Safety Regulation (GPSR), which addresses product safety concerns.
Under TAFR, vehicles must undergo a type-approval process to ensure compliance before market entry. Additionally, the United Nations Economic Commission for Europe (UNECE) standards are integrated into EU law to enhance safety and compliance.
While existing regulations address traditional safety issues, they do not explicitly cover AI-specific risks. However, AI use in the automotive sector also falls under regulations such as the General Data Protection Regulation (GDPR), particularly when personal data is processed by connected vehicles.
What Does AI Act Regulate?
Effective from August 1, 2024, the AI Act introduces a risk-based approach to regulation. AI systems classified as posing unacceptable risks, such as those involved in social scoring or real-time surveillance, are outright prohibited.
High-risk AI systems (HRAI) must adhere to stringent requirements, including:
- Data security
- Transparency
- Human oversight
- Robustness
These systems must undergo mandatory conformity assessments before they can be marketed, with ongoing monitoring throughout their lifecycle. Applications in critical infrastructure sectors, such as energy supply and justice, exemplify areas where HRAI regulations are crucial.
AI systems classified as very low risk will be governed by general guidelines and best practices without additional legal requirements.
Impact on the Use of AI in the Automotive Industry
AI is integral to many products and services within the automotive sector, particularly in autonomous and driver-assistance systems. It enhances vehicle intelligence by analyzing vast amounts of data to make informed driving decisions and monitor driver fitness and alertness.
Given the critical nature of in-vehicle decision-making, most AI-driven autonomous systems are expected to be classified as HRAI. However, non-safety-related AI applications may be classified as low-risk AI (LRAI).
The AI Act mandates that certain AI systems are classified as HRAI if governed by specific harmonisation legislation, such as TAFR and GPSR. This ensures that automotive-specific AI use remains primarily regulated by existing legislation, while HRAI provisions serve as overarching standards.
Compliance Requirements for AI Use Cases
While specifics regarding the revised TAFR and GPSR regulations are still pending, the HRAI and LRAI provisions in the AI Act provide an early indication of the regulatory demands facing the industry.
Under the high-risk classification, businesses must establish extensive documentation and monitoring processes, including:
- Rigorous testing to eliminate potential biases
- Transparency logs for decision traceability
- Comprehensive quality assurance throughout the vehicle’s lifecycle
Dedicated teams, including external auditors, will be necessary to conduct risk assessments and ensure compliance, making adherence to the AI Act technically complex and resource-intensive.
Impact on Non-EU Companies
The AI Act applies broadly to AI systems introduced or used in the EU or European Economic Area (EEA), regardless of the provider’s location. This includes non-EU companies whose AI outputs are utilized within these regions.
For instance, a U.S.-based company must comply with the EU’s stringent high-risk AI requirements while also adhering to potentially less stringent regulations in its home country. This extraterritorial scope necessitates that automotive manufacturers and service providers entering the EU market address overlapping regulatory requirements.
Many businesses may opt to adopt the EU’s high standards globally, potentially leading to a harmonization of AI safety standards worldwide as other major markets align with EU principles.
