The AI Act: Europe’s Bold Step Towards Regulating Artificial Intelligence

The AI Act: Europe's Bold Step Towards Regulating Artificial Intelligence

The EU’s AI Act sets new standards for high-risk AI applications and bans certain uses, ushering in a busy year for the AI sector.

In a landmark move, the European Union (EU) has approved the AI Act, a comprehensive set of regulations governing the use of artificial intelligence (AI) within its member states. With the aim of protecting fundamental rights and minimizing potential risks, the AI Act will have far-reaching implications for companies developing high-risk AI applications. As Europe prepares for the implementation of these new rules, 2024 promises to be a transformative year for the AI sector.

High-Risk AI Applications Face Stricter Standards

Under the AI Act, companies developing foundation models and applications deemed to pose a “high risk” to fundamental rights will be subject to new EU standards. Sectors such as education, healthcare, and policing will require AI systems to meet stringent criteria. For instance, the use of AI technology in public places by the police will only be permitted with court approval for specific purposes like counterterrorism or locating missing persons.

Bans on Certain AI Uses

The AI Act also prohibits certain AI applications within the EU. Facial recognition databases, similar to Clearview AI’s, will be entirely banned, as will the use of emotion recognition technology in workplaces and schools. These measures aim to safeguard individuals’ privacy and prevent potential misuse of AI technology.

Increased Transparency and Accountability

To comply with the AI Act, companies will need to adopt greater transparency in their AI development processes. They will be required to disclose information about how their models are trained and tested, ensuring the minimization of biases. Organizations utilizing high-risk AI systems will also bear greater responsibility for any resulting harm. The legislation aims to hold companies accountable for the impact of their AI systems and promote ethical practices.

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Compliance Deadlines and Auditing Requirements

Companies developing foundation models must comply with the AI Act within one year of its enforcement, while other tech companies have a two-year implementation period. To meet the new requirements, AI companies will need to adopt more meticulous documentation practices, enabling effective auditing. The legislation emphasizes the use of representative datasets and the mitigation of risks associated with AI systems.

Addressing Systemic Risks

The EU recognizes that the most powerful AI models, such as OpenAI’s GPT-4 and Google’s Gemini, could pose systemic risks to citizens. These models will require additional scrutiny to ensure compliance with EU standards. Companies will be responsible for assessing and mitigating risks, ensuring the security of their systems, and reporting any serious incidents. Energy consumption details will also need to be shared, reflecting the EU’s commitment to sustainability.

Exemptions for Open-Source AI Companies

Open-source AI companies are exempted from most transparency requirements outlined in the AI Act, except when developing models as computationally intensive as GPT-4. This exemption recognizes the collaborative nature of open-source development while still upholding the need for accountability and transparency.


The AI Act marks a significant step forward in Europe’s efforts to regulate AI and protect fundamental rights. By setting new standards for high-risk AI applications, banning certain uses, and promoting transparency and accountability, the EU aims to ensure the responsible and ethical deployment of AI technology. As the AI sector prepares for compliance with the AI Act, the year 2024 will undoubtedly be a pivotal one, shaping the future of AI in Europe and beyond. Negotiations for the AI Liability Directive, which will address compensation for AI-related harm, are also underway, further emphasizing the EU’s commitment to safeguarding individuals in the age of AI.

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