The EU AI Act, the first comprehensive AI law worldwide, aims to establish a unified legal framework for artificial intelligence within the European Union. Effective since August 1, 2024, its provisions will be implemented gradually over the next 6 to 36 months. The Act categorises AI applications into three risk levels: unacceptable, high, and minimal. Unacceptable-risk AI systems, such as those used for social scoring, are banned. High-risk applications, like CV-scanning tools, are subject to specific legal requirements. Applications not explicitly banned or listed as high-risk are largely unregulated.
The law supports AI innovation and start-ups in Europe by allowing companies to develop and test general-purpose AI models before public release. It mandates that national authorities provide companies with AI testing environments that simulate real-world conditions, helping SMEs compete in the growing EU AI market. The AI Act also establishes a European Artificial Intelligence Board to promote national cooperation and ensure compliance. Like GDPR, the AI Act can apply extraterritorially to providers outside the EU if they have users within the EU. The Act ensures that Europeans can trust AI and addresses the risks of AI to avoid undesirable outcomes.
