EU law on artificial intelligence: new standards and their impact on innovation

The European Union's Artificial Intelligence (AI) Act marks a significant milestone in regulating rapidly developing technologies. Designed with potential risks in mind, this set of rules, also known as the AI Act, aims not only to ensure safety but also to promote transparency and stimulate innovation in the field. The EU is striving to balance technological advancement with the need to protect citizens' rights, making AI regulation a priority for lawmakers.

Proposed in April 2021, the law has been actively discussed within the EU ever since. At its core, the goal is to create a flexible framework that allows technology companies to operate within clear standards and predictable rules, while ensuring compliance with human rights and minimizing risks. As AI use grows across various sectors, there is a danger that these technologies could violate citizens' rights or cause unpredictable harm if their use is not properly controlled.

The AI Act stands out for its risk-based approach. This means that certain uses of AI, deemed high-risk to society, will be strictly regulated. For example, AI used in law enforcement or critical infrastructure will require mandatory compliance assessments and monitoring by regulatory bodies. At the same time, lower-risk technologies, like chatbots, will be regulated more leniently, requiring only adherence to transparency principles.

For the most powerful and potentially hazardous technologies, such as generative AI models, the law introduces additional requirements, including risk assessments and mitigation measures. These technologies have the potential to shape the future of society, so the EU has set out to implement strict yet fair rules for their development and use. Transparency and openness regarding such models are expected to become the norm for their creation and dissemination.

However, the regulation has not been without criticism. Some tech companies, like OpenAI and the French startup Mistral, have expressed concern that the new rules could create additional barriers to innovation and slow down AI development in Europe, opening the door for competition from the US and China. Nonetheless, the EU continues to adapt the law in response to these challenges, aiming to strike a balance between security and progress.

The AI Act is expected to come into force on August 1, 2024, with companies given time to adapt to the new standards. The compliance period for various rules will be spread over several years, allowing developers and regulators to adjust to the new conditions. An important aspect of this is the creation of a monitoring and auditing system to ensure compliance with the law and its effective application.