To protect consumers from the potential dangers of artificial intelligence (AI), the European Parliament has approved legislation regulating AI-powered technologies. Once approved, the European Union (EU) AI Law (the “Law”) will undoubtedly set a comprehensive standard for the AI industry and have global ramifications.
The law is the first of its kind in the West and further cements the EU’s position as a global leader in technology regulation. This applies to anyone creating and disseminating AI systems within the EU, including foreign companies such as Microsoft, Google and OpenAI.
As outlined in the law, EU lawmakers seek to restrict or ban AI technologies that they classify as unacceptable or high risk. For example, predictive policing systems and real-time remote biometric identification systems will be banned, and AI tools that influence voters on social media will be heavily restricted. The law will also require generative AI systems such as ChatGPT to disclose what copyrighted material is used to train their models. Additionally, ChatGPT should identify AI-generated content to mitigate the spread of misinformation.
This landmark bill comes after the European Union enacted its influential data protection law framework in 2018. The General Data Protection Regulation (GDPR) sets standards for data privacy in Europe and imposes hefty fines on tech companies that break the rules. Similarly, the AI law would give European governments the power to fine AI companies that do not follow the rules. The fine could be higher than the GDPR fine, which he amounts to €40 million or equivalent to up to 7% of the company’s global annual turnover, whichever is higher.
Beyond the powers of governments to enforce the law, European citizens will have the power to lodge complaints against AI providers they believe violate the law.
European officials expect to reach final agreement on the rules by the end of 2023, after spending years working on legislation. Such rapid and consistent momentum in technology regulation in Europe stands in stark contrast to the US, where lawmakers are still grappling with early regulatory action.
If the law is passed, it is expected to be enacted by 2025 at the earliest.
