European lawmakers have passed landmark rules to regulate artificial intelligence (AI) in the region. The new regulations include comprehensive AI laws, starting with the Artificial Intelligence Act. Companies that breach these rules could face penalties of up to 7% of their global revenue. This act is part of a series of EU regulations that will have global implications for tech industry giants such as Meta Platforms, Apple, and Google’s parent company, Alphabet.
The move comes as several big tech companies have faced scrutiny from regulators for various concerns, including competition. Amazon has been a particular focus in this regard, and more recently, Microsoft’s ties to OpenAI, a leader in AI machine learning, have come under examination. The new AI regulations aim to establish new standards for competition and online content, which will significantly impact large AI tech companies.
According to Dragos Tudorache, a Romanian member of the European Parliament and lead delegate of the AI Act, The EU is the first in the world to set in place robust regulation on AI.
The European Parliament’s statement reveals that lawmakers have reached an agreement that prohibits certain AI applications, such as the creation of facial-recognition databases through indiscriminate image scraping. The deal also establishes rules for systems considered to be high-risk by lawmakers and requires transparency for general-purpose AI systems and the models powering them.
Regulating AI remains a global challenge, but countries such as the United States have drafted an executive order that is considered an attempt to ensure the safety of AI systems. Meanwhile, China has introduced rules related to generative AI.
The EU Act aims to provide clear regulations for various types of AI, particularly those utilizing large datasets with a high potential for harm. The Act also demands transparency and accountability from developers and users of AI.
However, it’s important to note that the Act does not cover AI systems operated solely for military or defense purposes. The Act still requires final endorsement from parliamentarians and representatives from the EU’s 27 countries and is not expected to take full effect before 2026.
Industry and consumer groups have raised concerns that regulations like the AI Act could hinder Europe’s progress and competitiveness. The tech lobby group DigitalEurope pointed out that conforming to the Act’s requirements could be costly for AI companies. Cecilia Bonefeld-Dahl, the group’s director-general, emphasized, The AI race is not one Europe can miss out on.
The European Consumer Organization also called for more robust regulations to effectively protect consumers. Ursula Pachl, the group’s deputy director-general, expressed concerns about leaving important areas underregulated, relying too heavily on companies’ goodwill to self-regulate.
The passing of the AI regulations by the EU marks a significant step toward establishing comprehensive rules for AI technology. As the first major global effort to regulate AI, it sets an example for other countries and regions to address the challenges and potential risks associated with AI.
