The EU AI Act is a landmark legislation that regulates artificial intelligence within the European Union. The Act takes a risk-based approach, categorizing AI systems into four risk levels: unacceptable, high, limited, and minimal. High-risk systems, such as those used in healthcare, education, or critical infrastructure, face stricter regulations.
Developers of AI systems must provide detailed documentation, including data sources, system design, testing, and risk management. AI-generated content, like deepfakes, must be labeled as such to ensure transparency and accountability. Companies that fail to comply with the regulations can face significant fines, ranging from €7.5 million to €35 million or 1% to 7% of their global turnover.
The Act establishes a European Artificial Intelligence Board to promote national cooperation and ensure compliance. Its global reach means that any organization using or developing AI systems within the EU, regardless of their location, must adhere to the regulations.
The timeline for implementation is crucial, with key dates including February 2, 2025, when the ban on unacceptable AI practices came into effect, August 2, 2025, when compliance requirements kick in for high-risk systems, and August 2, 2026, when full obligations come into effect.
The EU AI Act sets a precedent for global AI regulation, emphasizing transparency, accountability, and human oversight. Its impact will be felt beyond the EU, shaping the development and deployment of AI worldwide.
