"Ground-breaking" new EU legislation to regulate artificial intelligence (AI) has been given the final green light today, which will restrict or even prohibit the use of AI for certain purposes.
First proposed by the European Commission in April 2021, the act which was given final approval by the Council of the EU on Tuesday is the first of its kind globally to regulate the rapidly developing technology.
Under the new law, AI systems that present only a limited risk will be subject to lighter transparency obligations – such as the use of AI to structure data or organise documents without actually influencing decision making.
Meanwhile, high-risk AI systems will be authorised but subject to a set of requirements and obligations to gain access to the EU market.
High risk AI systems
Examples of high-risk AI systems mentioned in the act include safety or management systems for critical infrastructure, or with the intention of influencing an election or referendum. Other high risks include decision-making processes of employers, educational institutions, public service providers, law enforcement, migration and border control, and the justice system.
A number of uses of AI will be banned from the EU because of their "unacceptable" risk to society, such as cognitive behavioural manipulation (for example voice activated toys that encourage dangerous behaviour in children) and social scoring (classifying people based on behaviour, socio-economic status or personal characteristics).
The law also prohibits the use of AI for predictive policing based on profiling and systems that use biometric data to categorise people according to specific categories such as race, religion, or sexual orientation.
Penalties for infringing the the Act are set at a percentage of an offending company's global turnover or a predetermined amount, whichever is higher, while SME's and start-ups face proportional administrative fines.
'Significant milestone' for European Union
Mathieu Michel, Belgian State Secretary for Digitisation and Privacy Protection, said that adoption of the AI act is a "significant milestone for the European Union".
"This landmark law, the first of its kind in the world, addresses a global technological challenge that also creates opportunities for our societies and economies. With the AI act, Europe emphasises the importance of trust, transparency and accountability when dealing with new technologies while at the same time ensuring this fast-changing technology can flourish and boost European innovation," he said.
The new legislation also establishes a number of governance bodies, including an AI office within the European Commission to enforce the new rules.
After being signed by the presidents of the European Parliament and of the Council, the AI act will be published in the EU’s Official Journal in the coming days, and enter into force twenty days after this publication.The new regulation will apply two years after its entry into force, with some exceptions for specific provisions.