The European Union (EU) has officially adopted the AI Law – the first comprehensive legislation in the world to control and regulate artificial intelligence (AI) technology.
The above decision was made after a meeting of EU member countries on Tuesday, May 21, marking an important turning point in shaping the future of AI on a global scale.
“The adoption of the AI Law is an important milestone for the European Union,” said Mathieu Michel, Belgian Minister of Digitalization, in a statement on the same day. “With the AI Law, Europe emphasizes the importance of trust, transparency and accountability when dealing with new technologies while ensuring that this rapidly changing technology can evolve and advance. European innovation,” Michel added.
The Act is expected to create a comprehensive legal framework for the development, application and management of AI in important fields such as health, finance, education and transportation. Accordingly, the EU classifies AI applications based on the level of risk they pose to society.
AI applications rated as “unacceptable” such as “social assessment” systems, predictive policing and emotion recognition in workplaces and schools will be banned. High-risk AI systems, including autonomous vehicles, medical devices, and AI applications in financial services and education, will be more tightly regulated.
The AI law also sets specific requirements for next-generation AI systems, often referred to as “general purpose” AI, including systems such as OpenAI's ChatGPT, Google's Gemini, and Microsoft's Copilot. These requirements include: compliance with EU copyright law, transparency about how models are trained, regular testing, and adequate network security.
Matthew Holman, partner at law firm Cripps, said the law would have a major impact on companies developing, using or selling AI in the EU, especially US technology companies. Businesses outside the EU that use EU customer data in this AI platform will need to comply with the new law.
“American tech giants have been closely watching the developments of this law,” Holman added. “There has been a lot of investment in public-facing generative AI systems that will need to ensure compliance with new laws, which in some places are quite strict.” The EU Commission will have the power to fine companies that violate the AI Law up to 35 million euros ($38 million) or 7% of their annual global turnover, whichever is higher.
However, it will take some time before these requirements actually take effect, according to Dessi Savova, partner at Clifford Chance. Restrictions on general purpose systems will not begin until 12 months after the AI Law comes into force. And even then, commercially available generative AI systems will have a “transition period” that will allow them 36 months from the effective date of the law to bring their technology into compliance with the law. .
The introduction of the AI Law is a clear sign that the EU is serious about managing and developing AI responsibly. This law will create a global standard for other countries to follow and could greatly impact the future development and application of AI.