EU Publishes Voluntary Code of Practice for AI Compliance
The European Union has recently unveiled a new voluntary code of practice designed to assist companies across its 27-member bloc in adhering to the forthcoming AI Act. This regulation represents a comprehensive framework that will govern the usage of artificial intelligence within the EU.
Context and Background
As the EU prepares to enforce the AI Act’s rules on general purpose AI, which will come into effect on 2 August 2024, the newly released code aims to provide guidance for organizations navigating this complex landscape. Full enforcement of the AI Act is anticipated to commence at least a year later.
Key Focus Areas of the Code
The code addresses three critical areas:
- Transparency Obligations: This pertains to providers integrating general purpose AI models into their products.
- Copyright Protections: Ensuring that intellectual property rights are upheld in AI applications.
- Safety and Security: Focused on the robust functioning of advanced AI systems.
This framework assists firms by clarifying the compliance requirements of the AI Act, which evaluates AI use cases based on their associated risk levels, ranging from minimal to unacceptable. Non-compliance with the AI Act may result in severe penalties, including fines of up to €35 million or 7% of a company’s global revenue.
Understanding General Purpose AI
General purpose AI refers to systems capable of executing a broad spectrum of tasks, such as OpenAI’s ChatGPT. These models are foundational to numerous AI applications currently operating across various sectors within the EU. The code aims to provide a practical pathway for businesses grappling with the intricacies of the full legislation.
Industry Response and Concerns
Despite the EU’s intentions, the regulation has encountered rising criticism from segments of the industry. Recently, over 40 European companies—including major names like Airbus, Mercedes-Benz, and Philips—signed an open letter advocating for a two-year delay in the implementation of the AI Act. The letter expressed worries about the “unclear, overlapping and increasingly complex” regulatory demands, suggesting that these could jeopardize Europe’s competitive edge in the global AI arena.
EU’s Stance and Future Outlook
Despite these appeals, the European Commission has indicated no intention to postpone the rollout of the AI Act. It continues to stress the significance of responsible AI development. Henna Virkkunen, Executive Vice President for Tech Sovereignty, Security, and Democracy at the European Commission, remarked, “Today’s publication of the final version of the Code of Practice for general-purpose AI marks an important step in making the most advanced AI models available in Europe not only innovative but also safe and transparent.”
The publication of this code represents a critical development in the EU’s regulatory landscape for AI, aiming to balance innovation with safety and compliance.
