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Impact of the new European regulation on AI

Mar



Approval and Voting: The European Parliament has officially ratified the AI Act, marking a historic turning point in global regulation of artificial intelligence. With an overwhelming majority of 523 votes in favor, 46 against, and 49 abstentions, this legislative act positions the EU as a global precursor in establishing ethical and safety standards in AI usage.

The approval of the AI Act signifies a groundbreaking shift in the regulation of artificial intelligence, positioning the European Union at the forefront of global governance of this revolutionary technology. With the goal of balancing innovation and protection of fundamental rights, this legislation lays the groundwork for ethical, safe, and human-centered AI development. Through exploring its implications for consumers, businesses, and the future of AI regulation, we gain a comprehensive overview of how the AI Act could shape the global technological landscape.

A Regulatory Revolution: The Approval of the AI Act in the EU

Objectives and Ambitions

The AI Act aims to create an environment where AI can be developed and used reliably while simultaneously protecting citizens and their fundamental rights. It introduces a risk-based regulatory approach, categorizing AI applications based on their risk level and applying proportional requirements.

Risk Classification and Prohibitions

This innovative legislation categorizes AI applications from unacceptable risk to low risk, categorically prohibiting those assessed as dangerous, such as social scoring and behavioral manipulation. For high-risk applications, it imposes rigorous transparency and security standards.

Global Impact and European Leadership

With the adoption of the AI Act, the EU seeks to set an international standard for AI regulation, promoting an approach to technological development that is ethical, safe, and individual-centered.

Sanctions for Non-Compliance

Companies that fail to comply with the provisions of the AI Act face significant sanctions, up to 7% of their global turnover, highlighting the importance the EU places on compliance and accountability in the AI sector.

Flexibility and Adaptability

Despite imposing stringent rules, the AI Act leaves room for innovation, allowing the industry to adapt and innovate within the bounds of the law, especially regarding low-risk applications and support for startups and SMEs.

Next Steps and Implementation

Following parliamentary approval, the AI Act will proceed towards entry into force after its publication in the Official Journal of the European Union, ushering in a transition period for businesses and authorities to adapt. The establishment of an AI governance body will be crucial for the effective implementation and monitoring of the law.

The AI Act: Between Innovation and Regulation

The new law raises a series of considerations, from opportunities to risks and challenges, deserving thorough analysis.

Safeguarding Fundamental Rights

One of the AI Act's main strengths is its commitment to protecting citizens' fundamental rights. The inclusion of specific provisions against discriminatory use of AI and behavioral manipulation underscores the EU's clear stance against practices that may undermine democracy and ethical values. However, this requires ongoing updates of definitions and risk criteria to keep pace with technological evolution.

Promoting Innovation and SMEs

The AI Act promotes innovation by creating "regulatory sandboxes," offering SMEs and startups the opportunity to develop and test new technologies within a regulated framework. This is crucial for keeping the EU competitive on the global AI stage, but it requires a delicate balance to avoid stifling innovation with excessive bureaucracy.

Debate on Biometric Surveillance

The decision to allow the use of biometric surveillance by law enforcement agencies under exceptional circumstances has raised concerns. While there are safeguards, there is a risk that these technologies may be misused, leading to invasive surveillance and privacy violations. It is crucial for the EU to closely monitor the implementation of these technologies to prevent abuses.

Generative AI and Intellectual Property

The late inclusion of generative AI models in the AI Act raises questions about the regulation's ability to keep pace with technological innovations. Copyright compliance and transparency are vital aspects, but regulations must be flexible enough to adapt to future developments without hindering progress.

The Challenge of Global Interoperability

As the EU seeks to position itself as a leader in AI regulation, the challenge of interoperability with other jurisdictions, particularly the United States and China, emerges. It is essential for the EU to promote international dialogue to create global standards and ensure that the AI Act does not become a barrier to international trade and collaboration.

Sanctions and Enforcement

The severe sanctions envisaged by the AI Act for non-compliance highlight the importance the EU attaches to AI regulation. However, to ensure effective enforcement, robust monitoring mechanisms and cooperation among Member States will be essential, along with ensuring that SMEs are not deterred by potential sanctions.

A Path Yet to Be Traveled

The AI Act is a significant but not definitive first step in the regulation of AI. It will be crucial for the EU to remain vigilant, ready to amend and update legislation in response to rapid technological changes and their social, economic, and ethical implications. While the AI Act represents a significant advancement in AI governance, its success will depend on the EU's ability to adapt and respond to emerging challenges in this dynamic technological field.

Advantages

The AI Act represents a milestone in AI regulation, aiming to strike a balance between technological innovation and the protection of fundamental rights. Among its main advantages is the promotion of ethical, responsible, and transparent AI usage, positioning the EU as a leader in implementing high standards for privacy protection and security. Additionally, the legislative act provides regulatory clarity to businesses, facilitating responsible innovation and competitiveness in the global AI market.

Disadvantages

Despite positive intentions, the AI Act presents some disadvantages, including the risk of imposing excessive regulatory burdens that could hinder startups and SMEs, thus limiting innovation and growth in the AI sector. The law may also prove too rigid to quickly adapt to technological advances, limiting the EU's ability to effectively address future challenges posed by AI. Furthermore, the possibility of biometric surveillance in exceptional circumstances raises concerns about privacy and individual freedom.

Challenges

The main challenges posed by the AI Act include ensuring effective and uniform enforcement across all EU Member States, given the complexity and variety of AI technologies. A significant challenge is also to keep legislation up to date with rapid technological development, avoiding obsolescence. At the same time, the EU must balance the promotion of innovation with the need to protect citizens, ensuring that regulations do not unduly limit the potential for AI development.

Opportunities

The AI Act opens up several opportunities, including positioning the EU as a leading region in setting global standards for ethical and safe AI, exporting its values and principles internationally. It also offers the opportunity to stimulate innovation through regulatory experimentation spaces, supporting research and development of innovative AI solutions that respect fundamental rights. This can also encourage businesses to invest in responsible and secure AI technologies, promoting sustainable growth.

EU's Role Internationally

The adoption of the AI Act strengthens the EU's role as a pioneer in AI regulation, confirming its position as a leader in global technology governance. The EU has the opportunity to influence international standards and promote an ethical and responsible approach to AI, serving as a model for other regions. Furthermore, through international dialogue and cooperation, the EU can contribute to establishing a global framework for AI regulation that respects human rights and promotes sustainable technological development.

By Fausto Turco

Keywords: AI

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