What are the penalties for infringement of the EU AI Act?

 

Penalties for infringement

Member States will have to lay down effective, proportionate and dissuasive penalties for infringements of the rules for AI systems.
The Regulation sets out thresholds that need to be taken into account:

  •  Up to €35m or 7% of the total worldwide annual turnover of the preceding financial year (whichever is higher) for infringements on prohibited practices or non-compliance related to requirements on data;
  • Up to €15m or 3% of the total worldwide annual turnover of the preceding financial year for non-compliance with any of the other requirements or obligations of the Regulation;
  • Up to €7.5m or 1.5% of the total worldwide annual turnover of the preceding financial year for the supply of incorrect, incomplete or misleading information to notified bodies and national competent authorities in reply to a request;
    For each category of infringement, the threshold would be the lower of the two amounts for SMEs and the higher for other companies.
    The Commission can also enforce the rules on providers of general-purpose AI models by means of fines, taking into account the following threshold:
  • Up to €15m or 3% of the total worldwide annual turnover of the preceding financial year for non-compliance with any of the obligations or measures requested by the Commission under the Regulation.
    EU institutions, agencies or bodies are expected to lead by example, which is why they will also be subject to the rules and to possible penalties. The European Data Protection Supervisor will have the power to impose fines on them in case of non-compliance.

Our CEO, Dr. Galya Mancheva was a speaker at a seminar organized by BAIT, which took place on November 20, 2024

Our CEO, Dr. Galya Mancheva was a speaker at a seminar organized by the Bulgarian Association of Information Technology (BAIT), which took place on November 20, 2024, at Interpred. The  topic of the seminar was the  EU AI Act – the EU’s regulatory framework on artificial intelligence (Regulation (EU) 2024/1689).

The event was attended by nearly 20 representatives from 13 BAIT member companies, who learned about the definition of artificial intelligence, the deadlines for compliance with the new regulatory requirements, the levels of risk and the risk-based approach implied by the framework, as well as the concept of risk management in the context of these requirements.

Dr. Galya Mancheva also presented  AI advy, which helps companies meet European requirements and regulations related to artificial intelligence, particularly in the area of high-risk systems.

Our CEO Dr. Galya Mancheva took part in “Women`s Entrepreneur Day 2024”

 

Our CEO, Dr. Galya Mancheva participated in“Women’s Entrepreneur Day” 2024, which took place on November 19, 2024, at Inter Expo Center, Vitosha Hall. The event was organized by Selena Association of Women Entrepreneurs in Bulgaria and gathered inspiring women leaders and entrepreneurs from various industries, who are moving Bulgarian business forward.

At the event, she took part in the panel “Health, Sports, Balance, and Longevity,” where she shared how she takes care of herself while managing an innovative technology company. She talked about how she finds balance between her professional and personal life and  shared some useful tips for achieving business success without forgetting about health and personal well-being.

Women Entrepreneur Day is a platform that supports and inspires women in business. The agenda of the event included lectures, workshops and panel discussions covering key topics such as business strategies, financial planning and stress management.Guest speakers shared sucess stories and practical tips for overcoming challenges in today`s business world.

 

 

Europe regulates AI in order to boost investment in innovation and deep technologies

Europe regulates AI in order to boosts investment in innovation and deep technologies: European Innovation Council to invest €1.4 billion in deep technologies in 2025

Next year, the European Innovation Council (EIC) will boost deep technologies and high-potential start-ups from the EU with €1.4 billion. This is set out in the EIC Work Programme for 2025. The increase is €200 million compared to 2024 and aims to boost a more sustainable innovation ecosystem in Europe.

One of the main improvements to the programme is the EIC’s new scheme to expand the Strategic Technology Platform for Europe (STEP) – its budget is €300 million and will finance larger investments in companies aiming to bring strategic technologies to the EU market.

The remaining budget is distributed across 4 funding schemes:

EIC Pathfinder – for technology solutions with a technology readiness level of up to TRL 4 with the potential to lead to technological breakthroughs.

EIC Transition – an opportunity for consortia that have already achieved research results within the EIC Pathfinder or other Horizon 2020 and Horizon Europe programmes to turn them into innovations ready for market implementation.

EIC Accelerator – support for innovation projects in the final development phase.

The individual programmes are eligible for funding by research organisations, universities, SMEs, start-ups, manufacturing companies or sole traders, large companies, small mid-caps, etc.

Our CEO Dr. Galya Mancheva has provided an UpDate on EU AI Act on Bloomberg TV

Our CEO Dr. Galya Mancheva has provided today an UpDate on EuAiAct on Bloomberg TV.

Some of the insights are the following:

The ban of AI systems posing unacceptable risks will apply six months after the entry into force.

Codes of practice will apply nine months after entry into force.

Rules on general-purpose AI systems that need to comply with transparency requirements will apply 12 months after the entry into force

High-risk systems will have more time to comply with the requirements as the obligations concerning them will become applicable 36 months after the entry into force.

Our CEO, Dr. Galya Mancheva, will be part of the upcoming event “Women`s Entrepreneur day 2024”

Our CEO, Dr. Galya Mancheva, who is an economist and holds a PhD in Political Science, will be part of the upcoming event “Women’s Entrepreneur Day” 2024, which will take place on November 19, 2024, at Inter Expo Center, Vitosha Hall.

At the event, she will participate in the panel “Health, Sports, Balance, and Longevity,” where she will share how she takes care of herself while managing an innovative technology company. She will talk about how she finds balance between her professional and personal life and will share useful tips for achieving business success without forgetting about health and personal well-being.

Please use promo code: MANCHEVA25 to purchase a ticket with a 25% discount here:  https://wed.selenabulgaria.com/#tickets

 

 

Dr. Galya Mancheva was one of the speakers at the Business forum EU AI Act: regulations and transformations in the industry

Dr. Galya Mancheva, founder and executive director of the company Ai advy, was one of the speakers at the business forum EU AI act: regulations and transformations in the industry, organized by b2b Media.
The event took place on November 1st at the Intercontinental Hotel. The one-day forum  has brought  together business leaders and entrepreneurs who are transforming their organizations in line with the latest technology trends and regulations. It  provided an opportunity for  trends to be followed in the industry, the latest EU regulations in the field, as well as intriguing European programs to develop business with.
Dr. Mancheva  participated with the topic “EU AI act: threat or opportunity for business transformation” and brought clarity among the four levels of risk and the chronology in the creation and implementation of  EU AI legislation.

Dr. Galya Mancheva will be one of the speakers at the upcoming business forum EU AI Act: regulations and transformations in the industry

Dr. Galya Mancheva, founder and executive director of the company Ai advy, will be one of the speakers at the upcoming business forum EU AI act: regulations and transformations in the industry, organized by b2b Media.
The event will take place on November 1st at the Intercontinental Hotel. The one-day forum brings together business leaders and entrepreneurs who are transforming their organizations in line with the latest technology trends and regulations. It will provide an opportunity to follow trends in the industry, the latest EU regulations in the field, as well as intriguing European programs to develop business with.
Dr. Mancheva will participate with the topic “EU AI act: threat or opportunity for business transformation”. She builds her risk management and regulatory expertise over 10 years in the financial technology industry. For the past three years, he has been developing Ai advy, which helps companies comply with EU regulatory requirements regarding artificial intelligence. She has authored a number of scientific publications exploring the regulation since its announcement in 2021.
You can buy a ticket worth BGN 240. We provide an additional code for a 40% discount: Advy40
Need more experts? – Get 3 tickets and get a fourth free

Come to find out:
– What are the deadlines for the implementation of the EU AI Act
– How AI will change the business climate in Bulgaria and Europe
– Which are the new European innovation programs to apply to

Learn more: https://ai.b2bmedia.bg/

Article: https://b2bmedia.bg/news/nov-biznes-forum-postavq-na-fokus-regulaciite-v-ai-eto-kakvo-da-ochakvate-xepYL

Website of the event: https://ai.b2bmedia.bg/

 

EU AI Act: first regulation on artificial intelligence

As part of its digital strategy, the EU wants to regulate artificial intelligence (AI) to ensure better conditions for the development and use of this innovative technology. AI can create many benefits, such as better healthcare; safer and cleaner transport; more efficient manufacturing; and cheaper and more sustainable energy.

In April 2021, the European Commission proposed the first EU regulatory framework for AI. It says that AI systems that can be used in different applications are analysed and classified according to the risk they pose to users. The different risk levels will mean more or less regulation.

Learn more about what artificial intelligence is and how it is used
What Parliament wants in AI legislation

Parliament’s priority is to make sure that AI systems used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly. AI systems should be overseen by people, rather than by automation, to prevent harmful outcomes.

Parliament also wants to establish a technology-neutral, uniform definition for AI that could be applied to future AI systems.

Learn more about Parliament’s work on AI
Learn more about Parliament’s vision for AI’s future
AI Act: different rules for different risk levels

The new rules establish obligations for providers and users depending on the level of risk from artificial intelligence. While many AI systems pose minimal risk, they need to be assessed.

Unacceptable risk

Unacceptable risk AI systems are systems considered a threat to people and will be banned. They include:

Cognitive behavioural manipulation of people or specific vulnerable groups: for example voice-activated toys that encourage dangerous behaviour in children
Social scoring: classifying people based on behaviour, socio-economic status or personal characteristics
Biometric identification and categorisation of people
Real-time and remote biometric identification systems, such as facial recognition

Some exceptions may be allowed for law enforcement purposes. “Real-time” remote biometric identification systems will be allowed in a limited number of serious cases, while “post” remote biometric identification systems, where identification occurs after a significant delay, will be allowed to prosecute serious crimes and only after court approval.

High risk

AI systems that negatively affect safety or fundamental rights will be considered high risk and will be divided into two categories:

1) AI systems that are used in products falling under the EU’s product safety legislation. This includes toys, aviation, cars, medical devices and lifts.

2) AI systems falling into specific areas that will have to be registered in an EU database:

Management and operation of critical infrastructure
Education and vocational training
Employment, worker management and access to self-employment
Access to and enjoyment of essential private services and public services and benefits
Law enforcement
Migration, asylum and border control management
Assistance in legal interpretation and application of the law.

All high-risk AI systems will be assessed before being put on the market and also throughout their lifecycle. People will have the right to file complaints about AI systems to designated national authorities.

Transparency requirements

Generative AI, like ChatGPT, will not be classified as high-risk, but will have to comply with transparency requirements and EU copyright law:

Disclosing that the content was generated by AI
Designing the model to prevent it from generating illegal content
Publishing summaries of copyrighted data used for training

High-impact general-purpose AI models that might pose systemic risk, such as the more advanced AI model GPT-4, would have to undergo thorough evaluations and any serious incidents would have to be reported to the European Commission.

Content that is either generated or modified with the help of AI – images, audio or video files (for example deepfakes) – need to be clearly labelled as AI generated so that users are aware when they come across such content.

Supporting innovation

The law aims to offer start-ups and small and medium-sized enterprises opportunities to develop and train AI models before their release to the general public.

That is why it requires that national authorities provide companies with a testing environment that simulates conditions close to the real world.

Next steps

The Parliament adopted the Artificial Intelligence Act in March 2024 and the Council followed with its approval in May 2024. It will be fully applicable 24 months after entry into force, but some parts will be applicable sooner:

The ban of AI systems posing unacceptable risks will apply six months after the entry into force
Codes of practice will apply nine months after entry into force
Rules on general-purpose AI systems that need to comply with transparency requirements will apply 12 months after the entry into force

High-risk systems will have more time to comply with the requirements as the obligations concerning them will become applicable 36 months after the entry into force.

Source: https://www.europarl.europa.eu/topics/en/article/20230601STO93804/eu-ai-act-first-regulation-on-artificial-intelligence

Who does the AI Act apply to?

The legislative framework will apply to both public and private entities inside and outside the #EU if the AI system is placed on the Union market or its use affects persons located in the #EU.

It can apply to both providers (e.g. the developer of a resume screening tool) and those implementing high-risk AI systems (e.g. a bank that purchased a resume screening tool). Importers of AI systems will must also ensure that the foreign supplier has already carried out the relevant conformity assessment procedure and that the relevant AI system bears a European Conformity Mark (CE) and is accompanied by the necessary documentation and instructions for use.

In addition, certain obligations are foreseen for providers of general-purpose AI models, including large generative #AI models.

Free open source model providers are exempt from most of these obligations. This exemption does not cover the obligations of providers of general purpose AI models with systemic risks.

The obligations also do not apply to pre-market research, development and prototyping activities, and the regulation does not apply to #AI systems that are exclusively for military and defense purposes or for purposes in the field of national security, regardless of the type of entity performing these activities