The Council of the European Union finally approved the Artificial Intelligence Act (AI Act).
The law, proposed by the European Commission (EC) in April 2021, established mandates for AI based on potential risks and levels of impact, with the aim of protecting fundamental rights, democracy, rule of law, and environmental sustainability from high-risk artificial intelligence (AI), while promoting innovation and making Europe a leader in the sector.
On December 8, 2023, the European Parliament (EP) and Council negotiators tentatively agreed on the 'Artificial Intelligence Act', and on March 13, 2024, the European Parliament approved the 'Artificial Intelligence Act'.
The law is the world's first AI-related law aimed at promoting the development and utilization of AI systems that are safe and reliable for both private and public entities in the EU single market, ensuring respect for the basic rights of EU citizens, and promoting investment and innovation in AI in Europe.
First, the classification of AI systems was done according to their risk. AI systems with limited risk in classifying AI into various types are subject to a light transparency obligation, and high-risk AI systems are subject to a set of requirements and obligations to access the EU market through permission.
General-purpose AI models do not pose a systemic risk with respect to the use of general-purpose artificial intelligence (GPAI) models, but only a few limited requirements, such as transparency requirements, are applied to GPAI models, while models with systemic risks must adhere to stricter rules.
The governance structure will have a management body to ensure proper implementation, including an AI Secretariat within the Commission to enforce common rules across the EU and a panel of independent experts to support enforcement activities.
To develop and train innovative AI before it is released on the market, regulatory sandboxes and tests will be prepared available to SMEs and startups at the national level.
The law will take effect 20 days after it is published in the EU Gazette and will take effect two years after it enters into force, with some exceptions to certain provisions.
