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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.

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

Which risks will be covered by the new AI rules?

The deployment of #AI systems has great potential to deliver societal benefits, economic growth and boost #EU innovation as well as global competitiveness. In some cases, however, the specific characteristics of some AI systems may lead to new risks related to consumer safety and fundamental rights. Some powerful AI models that are widely used could even pose systemic #risks.
This leads to legal uncertainty for companies and a potentially slower uptake of AI technologies among businesses and citizens due to a lack of trust. An unsynchronized regulatory response by national authorities risks fragmenting the internal market.

Why should we regulate the use of artificial intelligence?

The potential benefits of artificial intelligence (#AI) for our societies are numerous—from better medical care to better education. Given the rapid technological development of #AI, the #EU is determined to act as one to make good use of these opportunities.

The #EU AI Act is the first comprehensive #AI legislation in the world. It aims to address risks to health, safety and fundamental rights. The regulation also protects democracy, the rule of law and the environment.

Although most AI systems involve little or no risk, some AI systems create risks that must be accounted for in order to avoid undesirable outcomes.

For example, the non-transparency of many algorithms can lead to uncertainty and hinder the effective implementation of existing safety and fundamental rights legislation. In response to these challenges, legislative action was needed to ensure a well-functioning internal market for AI systems where both benefits and risks are adequately considered.

This includes applications such as biometric identification systems or decisions made by AI that affect important personal interests, for example in employment, education, healthcare or law enforcement.