MEPs Make History by Approving World’s First Comprehensive AI Law

The European Parliament has approved the world’s first comprehensive framework for regulating the risks associated with artificial intelligence (AI). The explosive growth of the AI sector has generated significant profits but has also raised concerns about bias, privacy, and potential threats to humanity. The AI Act aims to address these concerns by classifying AI products based on risk levels and adjusting scrutiny accordingly, making the technology more “human-centric.”

MEP Dragos Tudorache emphasized that the AI Act is a starting point for new governance built around technology, signaling the EU’s commitment to addressing the challenges posed by AI. The legislation places the EU at the forefront of global efforts to regulate AI and mitigate associated risks. While China has already introduced a patchwork of AI laws, the EU’s AI Act goes further, setting binding requirements to address AI risks and positioning the region as the global standard for trustworthy AI.

Enza Iannopollo, principal analyst at Forrester, highlighted the significance of the AI Act, calling it the world’s first and only set of binding requirements to mitigate AI risks. She noted that the EU would become the de facto global standard for trustworthy AI, surpassing other regions, including the UK, which hosted an AI safety summit in November 2023 but has not planned legislation similar to the AI Act.

The AI Act regulates AI based on its potential harm to society, implementing stricter rules for higher-risk applications. AI systems deemed high-risk, including those used in critical infrastructure, education, healthcare, law enforcement, border management, or elections, will be subject to strict requirements. The legislation also addresses risks associated with generative AI tools and chatbots, requiring transparency about the material used to train models and compliance with EU copyright law.

The Act still needs to pass additional steps before formally becoming law. Lawyer-linguists will scrutinize and translate its text, and the European Council, composed of representatives of EU member states, will endorse it. Meanwhile, businesses are preparing to comply with the legislation, seeking legal certainty and guidance on scaling AI technology and extracting value.

Kirsten Rulf, a former advisor to the German government and a partner at Boston Consulting Group, mentioned that over 300 firms have contacted her company for guidance on scaling tech and navigating the legal aspects of AI. The AI Act represents a pivotal step in shaping the future of AI regulation and governance, signaling the EU’s commitment to ensuring responsible and ethical use of AI technologies.