The EU AI Act – the world’s first legislation regulating the use of artificial intelligence – is coming. Is your organisation ready?
The EU Artificial Intelligence Act is a breakthrough piece of legislation, designed to regulate the use and provision of AI in the EU. The AI Act will have a significant impact on organisations both within and outside of the EU, with failure to comply potentially leading to fines of up to 7% of annual worldwide turnover.
On 21 May 2024, the Council of the European Union approved The Act, paving the way for the formal signing of the legislation and its publication in the Official Journal of the EU in the coming weeks (June/July 2024). The AI Act will then enter into force 20 days after such publication, with staggered transition periods of 6 to 36 months.
In summary, the AI Act is founded in a risk-based approach. In other words, the higher the risk of harm to society an AI use case poses, the more stringent the rules will be. The Act applies to all sectors and industries and affects anyone involved in the use of AI, including product manufacturers, providers, end users, distributors and importers of AI systems.
The AI Act equally applies to providers and deployers based outside the EU who operate in any capacity within the EU market.
Crucially, the EU intends for the AI Act to have the same level of international impact as GDPR — in other words, to be viewed as best practice and serve as a blueprint for other regions and jurisdictions.
Given the significant workload associated with preparing for the AI Act and the impact this may have on current product development, organisations are starting to consider their obligations now and as such, many are looking to bolster their risk teams with specialist AI and data privacy professionals.
Here’s a brief overview of the AI Act’s key milestones.
21 May 2024 - EU approved the EU AI Act
July 2024 - AI Act is set to be published in EU Official Journal and come into force
6 months after coming into force (likely to be around January 2025), bans on ‘unacceptable risk’ AI systems take effect
18 months after coming into force (likely to be around January 2026 ), continuous monitoring will be established to ensure ongoing compliance and saftey of AI systems in real-world scenarios
Corporate governance teams are already starting to prepare for the AI Act which will bring unprecedented change to the way AI is developed and adopted.
Leonid can help by finding you the very best expertise to prepare your organisation for the AI Act. Contact us to find out more!