European AI Regulation: A New Era of Responsible Innovation

Implementation of the AI Regulation

The European Union’s regulation on artificial intelligence (AI) came into force on August 1, 2024. This regulation aims to promote the responsible development and deployment of AI within the EU.

Background

Proposed by the Commission in April 2021 and approved by the European Parliament and Council in December 2023, the AI regulation addresses potential risks to health, safety, and fundamental rights of citizens. It establishes clear requirements and obligations for developers and deployers regarding specific uses of AI while minimizing administrative and financial burdens on businesses.

Risk-Based Framework

The AI regulation introduces a uniform framework across all EU countries, focusing on a forward-looking definition of AI and a risk-based approach:

  • Minimal Risk: Most AI systems, such as spam filters and AI-based video games, are exempt from obligations under the AI regulation. However, companies may voluntarily adopt additional codes of conduct.
  • Specific Transparency Risk: AI systems like chatbots must clearly inform users that they are interacting with a machine, while certain AI-generated content must be flagged as such.
  • High Risk: High-risk AI systems, such as AI-based medical software or systems used for recruitment, must meet strict requirements, including risk mitigation systems, data quality, user information, and human oversight.
  • Unacceptable Risk: Systems enabling “social scoring” by governments or corporations are considered a clear threat to citizens’ fundamental rights and are therefore prohibited.

Aspirations for AI Leadership

The EU aims to become a global leader in safe AI. By developing a robust regulatory framework based on human rights and core values, the EU can create an AI ecosystem that benefits all. This translates into better healthcare, safer and cleaner transportation, and improved public services for citizens.

The AI ecosystem will facilitate the development of innovative products and services, especially in the fields of energy, security, and healthcare, as well as increased productivity and more efficient manufacturing processes for businesses. Additionally, governments will benefit from cheaper and more sustainable services, for instance, in transportation, energy, and waste management.

Consultation on Good Practices

Recently, the Commission launched a consultation on a code of good practices for providers of general-purpose AI models. This code, mandated by the AI regulation, will cover critical areas such as transparency, copyright rules, and risk management.

Providers of general-purpose AI models operating in the EU, businesses, civil society representatives, rights holders, and academic experts are invited to provide feedback and insights, which will contribute to the future draft of the Commission’s code of good practices for general-purpose AI.

Next Steps

Provisions related to general-purpose AI will take effect in 12 months. The Commission intends to finalize the code of good practices by April 2025. Furthermore, the feedback received during the consultation will also inform the work of the AI Office, which will oversee the implementation and enforcement of the AI regulation concerning general-purpose AI.

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