The European Union has recently taken a major step in laying out new rules for how companies can use artificial intelligence.
Brussels has taken a bold and significant step in establishing global standards for the technology employed in various applications, such as OpenAI’s ChatGPT to surgical procedures and fraud detection in the banking sector.
Brando Benifei, a member of the European Parliament involved in the EU AI Act, stated, "Today, we have made history".
The lawmakers have successfully reached an agreement on a draft version of the Act. The next step will be to negotiate with the Council of the European Union and the member states of the EU, before becoming law.
This action comes in response to the warning issued by hundreds of top AI scientists and researchers regarding the extinction risk posed by technology.
Upon approval, the Act will have jurisdiction over all entities that develop and deploy AI systems in the EU, including companies situated outside the bloc.
The level of regulation imposed will be determined by the risks posed by a specific application, ranking from minimal to unacceptable.
Systems falling into the "unacceptable" category will be banned. These include real-time facial recognition systems used in public spaces, predictive policing tools, and social scoring systems similar to those in China.
The Act also encompasses transparency requirements for AI systems. For example, ChatGPT would be compelled to disclose that the content is AI-generated. They would also need to make it clear when images are fake, while establishing safeguards to prevent the generation of illegal content.
A significant number of AI systems will likely fall into the high-risk or prohibited categories. This would leave owners of such systems with enormous fines if they fail to follow the regulations.
Engaging in prohibited AI practices could add up to a fine of up to €40 million ($43 million) or an amount equivalent to 7% of a company's worldwide annual turnover.
Dragoș Tudorache, a member of the European Parliament, emphasised the goal of achieving balance with the Act. It aims to protect citizens while simultaneously “promoting innovation, not hindering creativity, and deployment and development of AI in Europe”.
Companies such as, Microsoft and Google, welcome progress on the Act and look forward to further refinement and clarity.
Source: CNN News
Image Source: iStock
