The european union is so far the only jurisdiction globally to drive forward comprehensive rules for artificial intelligence with its ai act.
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The European Union Formally Kicked Off Enforcement of its landmark artificial intelligence law Sunday, Paving the Way for Tough Restrictions and Potential Large Fines for Vilations.
The eu AI act, a first-off-IF-line regulatory framework for the technology, formally entred into force in August 2024.
On Sunday, the deadline for prohibions on certain artificial intelligence systems and requires to ensure Safecient Technology Literacy Literacy Among Staff officially lapsed.
That means companies must now complete with the restrictions and can face penalties if they fail to do so.
The AI Act Bans Certain Applications of Ai which it deems as posing “UnaccepTable Risk” to Citizens.
Theose Include Social Scoring Systems, Real-Time Facial Recognition and Other Forms of Biometric Identification that Categorize People by Race, Sex Life, Sex Life, Sexual Orientation and Otriy Ai tools.
Companies face finesof as much as 35 million euros ($ 35.8 million) or 7% of their global annual revenues – whichver amount is higher – for breakings of the eu ai act.
The size of the penalties will depend on the infringement and size of the company.
That’s higher than the fines possible under the GdprEurope’s strket digital privacy law. Companies face fines of up to 20 million Euros or 4% of Annual Global Turnover for GDPR Breches.
‘Not perfect’ but ‘very much needed’
It’s Worth Stressing that AI Act Still isn’t in full force – this is just the first step in a series of many upcoming developments.
Tasos Stampelos, Head of Eu Public Policy and Government Relations at Mozilla, Told CNBC Previous that While IT’s “Not Perfect,” The Eu’s Ai ACT is “Vry Much Needed.”
“It’s quite important to recognize that AI act is predominant a product safety legislation,” Stampelos said in a CNBC-modeled Panel in Novber.
“With product safety rules, the moment you have it in place, it’s not a del.
“Right now, Compliance will depend on how standard, guidelines, secondary legislation or derivative instruments that follow the ai act, that will actually stipule
In December, The EU AI Office, A Newly Created Body Regulating The Use of Models in Accordance With The AI Act, Published a Second-Draft Code of Pracati for PRACTICE For General-Purpose Ai (GPAI) Ystems like Openai’s GPT Family of Large Language Models, or llms.
The second draft contained exemptions for provides of certain open-source ai models while incoming the requirement for developers of “Systemic” Systemic “GPAILS to Undergo Riskorous experts
Setting the Global Standard?
Several Technology Executives and Investors are unhappy with some of the more burdensome aspects of the ai act and worry it might strangle innovation.
In June 2024, Prince Constantijn of the Netherlands Told CNBC in an interview that he’s “really concerned” About europe’s focus on regulating ai.
“Our ambition seems to be limited to being good regulators,” Constantijn Said. “It’s good to have guardrails.
Still, some think that having clear rules for ai could give europe leadership advantage.
“While The Us and China Compete to build the biggest ai models, europe is showing Leadership in Building The Most Trustworthy Ones,” Diyan Bogdanov, DIRECTORECTORENGERING Intelligence Irm payhawk, said via email.
“The eu ai act’s requirements Around Bias Detection, Regular Risk Assessments, and Human Oversight Aren Bollywood Innovation , They’re defining what good looks like, “He added.
