The world’s first comprehensive AI regulation – the AI Act – has finally been published in the Official Journal of the European Union after being signed by the Presidents of the European Parliament and the Council.
Following its publication, the AI Act will enter into force on 1 August 2024. However, it is worth noting that the majority of the AI Act’s obligations will not be applicable at this date, due to a two-year implementation period.
As Gulliksson has previously reported (here, here and here), the aim of the AI Act is to ensure the sustainable emergence and use of AI in the European Union and to create the conditions for the responsible development of innovation. The AI Act does this by regulating AI on the basis of its ability to cause harm to society, using a “risk-based” approach, meaning that the higher the risk, the stricter the rules.
For companies in the Union that provide, manufacture or deploy AI systems as part of their business, the AI Act will naturally have a huge impact on their day-to-day activities. In particular, companies will need to ensure that their use of AI is in line with the objectives and values set out in the legislation. Especially since legal entities could face fines of up to €7.5 million, or 1.5% of the company’s annual turnover, for non-compliance with the AI Act. As for global companies, they could face fines of up to €35 million or 7% of global turnover.
If you find it difficult to navigate this new world of AI legislation, please do not hesitate to contact us or any of our colleagues.
