The EU AI ACT

The European Union has taken a bold step in regulating artificial intelligence (AI) with the AI Act, a landmark piece of legislation poised to reshape the global AI landscape. This Act introduces a comprehensive framework for governing the development, deployment, and use of AI systems within the EU, impacting businesses worldwide.  

What is the EU AI Act?

The EU AI Act is a risk-based approach to AI regulation. It categorizes AI systems into four risk categories: unacceptable risk, high risk, limited risk, and minimal risk. Each category has specific requirements and obligations for providers and users of AI systems.  

  • Unacceptable risk: AI systems that pose an unacceptable risk to fundamental rights and safety are banned outright. This includes systems that manipulate human behavior, exploit vulnerabilities, or engage in social scoring.  

  • High risk: AI systems used in critical sectors like healthcare, transportation, and law enforcement are subject to strict requirements, including conformity assessments, risk management systems, and human oversight.  

  • Limited risk: AI systems that interact with humans or generate synthetic content (like chatbots and deepfakes) have transparency obligations, such as disclosing that users are interacting with AI.  

  • Minimal risk: Most AI systems fall into this category and have minimal obligations under the Act.  

Why is the EU AI Act relevant to businesses?

Even if your business isn't based in the EU, the AI Act can affect you if your AI systems are used within the EU or if their output is used by individuals or organizations in the EU.  

Here's why businesses should pay attention:

  • Compliance is key: Non-compliance can lead to significant fines of up to €30 million or 6% of global annual turnover, whichever is higher.

  • It sets a global precedent: The EU AI Act is likely to influence AI regulations in other countries, making it a crucial benchmark for responsible AI development and deployment.  

  • It impacts innovation: The Act encourages innovation while ensuring that AI systems are safe, trustworthy, and respect fundamental rights.  

  • It builds trust: By complying with the AI Act, businesses can demonstrate their commitment to ethical AI practices and build trust with their customers and stakeholders.  

How can businesses prepare for the EU AI Act?

  • Understand your role: Identify whether you are a provider, deployer, importer, or distributor of AI systems under the Act.  

  • Assess your AI systems: Determine the risk category of your AI systems and the corresponding obligations.  

  • Develop a compliance strategy: Implement measures to meet the AI Act's requirements, including risk management, data governance, and transparency.  

  • Stay informed: Keep up-to-date on the latest guidance and interpretations of the AI Act.

Aetos Data Consulting can help you navigate the complexities of the EU AI Act and ensure your AI initiatives are compliant and ethical. Contact us today to learn more.