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The European Union has launched the first comprehensive regulatory framework for Artificial Intelligence (AI), after several years of planning. The Act sets to redefine the approach that companies will take to AI usage, placing emphasis on transparency and user protection. As regulators have now put their foot down, businesses face a difficult choice between strict compliance and accessing the valuable European market or seeking friendlier shores.
The EU AI Act is a landmark piece of legislation designed to regulate AI at scale by building public trust. It adopts a risk-based approach, meaning the level of rules depends on the potential for harm. Certain practices, such as manipulating human behaviour or targeting vulnerable groups, are completely prohibited. At other levels, the focus is on transparency and documentation, ensuring users know when they are interacting with AI. Crucially, this framework forces companies to prove their technology is safe before it reaches the public.
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