Lawmakers in the EU have approved the world’s first comprehensive regulations for artificial intelligence (AI), marking a significant milestone in the global effort to regulate AI technology.
The European Parliament’s vote paves the way for these rules to become law and potentially serve as a model for other jurisdictions pursuing similar regulations.
According to AP News, The European Union’s initiative to establish guidelines for AI has gained urgency due to the rapid advancements in technologies like chatbots, exemplified by ChatGPT, which highlight both the benefits and risks associated with AI.
The proposed legislation, introduced in 2021, will govern the use of AI systems in various products and services. It introduces a classification system that categorizes AI applications into four risk levels, ranging from minimal to unacceptable.
Higher-risk applications, including those related to hiring and technologies designed for children, will face more stringent requirements, such as increased transparency and the use of accurate data. The enforcement of these rules will be the responsibility of the EU’s 27 member states, who will have the authority to compel companies to withdraw their AI applications from the market if necessary.
In cases of severe violations, companies could face fines of up to 40 million euros ($43 million) or 7% of their annual global revenue. This could result in significant penalties for tech giants like Google and Microsoft, potentially amounting to billions of euros.
While the EU may not be at the forefront of cutting-edge AI development like the United States and China, it has gained recognition for its influential role in setting global standards through regulations. Brussels, the administrative center of the EU, has taken the lead in addressing the dominance of major tech companies.
Experts highlight that the EU’s large single market, encompassing 450 million consumers, provides an incentive for companies to comply with EU regulations rather than creating separate products for various regions. This unified approach facilitates easier compliance for businesses operating within the EU.