What Every CEO Needs To Know About The New AI Act

Having recently passed the Artificial Intelligence Act, the European Union is about to bring into force some of the world’s toughest AI regulations.

Potentially dangerous AI applications have been designated “unacceptable” and will be illegal except for government, law enforcement, and scientific study under specific conditions.

As was true with GDPR, this new EU legislation will create new obligations for anyone who does business within the 27 member states, not just the companies based there.

Those responsible for writing it have said that the aim is to protect citizens’ rights and freedoms while also fostering innovation and entrepreneurship. But the 460-odd published pages of the Act contain a lot more than that.

If you run a business that operates in Europe or sells to European consumers, though, there are some important things you need to know. Here are what stands out to me as the key takeaways for anyone who wants to be prepared for potentially significant changes.

When Does It Come Into Force?

The Artificial Intelligence Act was adopted by the EU Parliament on March 13 and is expected to soon become law when it is passed by the European Council. It will take up to 24 months for all of it to be enforced, but enforcement of certain aspects, such as the newly banned practices, could start to happen in as little as six months.

As was the case with GDPR, this delay is to let companies ensure they’re compliant. After this deadline, they could face significant penalties for any breaches. These are tiered, with the most serious reserved for those breaking the “unacceptable uses” ban. At the top end are fines of up to 30 million euros, or six percent of the company’s global turnover (whichever is higher!)

Potentially even more damaging, though, would be the impact on a business’s reputation if it’s found to be breaking the new laws. Trust is everything in the world of AI, and businesses that show they can’t be trusted are likely to be further punished by consumers.[…]

Having recently passed the Artificial Intelligence Act, the European Union is about to bring into force some of the world’s toughest AI regulations.

When Does It Come Into Force?

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