The EU AI Act 2024 goes live today 1st Aug 2024 and is now in force – it is the world’s first comprehensive legal framework regulating artificial intelligence (AI). The Act categorizes AI systems by risk levels and sets out obligations for all organisations, providers and deployers, including penalties for non-compliance that can reach up to €35 million or 7% of annual revenue.
Key Points:
1. Risk-Based Classification:
- Unacceptable Risk: Prohibits AI systems causing significant harm, such as those manipulating behavior or for social scoring.
- High Risk: Includes AI in critical sectors like infrastructure, education, and law enforcement, requiring robust risk management, documentary evidence and transparency.
- Limited Risk: Requires lighter transparency measures, like informing users they are interacting with AI.
- Minimal Risk: Subject to minimal regulation.
2. Extraterritorial Reach:
- Applies to AI systems used in the EU, regardless of where the provider is located.
3. Transparency and Accountability:
- Providers must inform users about AI interactions and mark AI-generated content. High-risk AI systems must be registered in an EU database.
4. Governance and Enforcement:
- Managed by the AI Office and national authorities, with regular updates to the regulations.
5. Penalties for Non-Compliance:
- Severe penalties for serious breaches and scaled fines for lesser infractions.
6. Support for Innovation:
- Includes provisions to support SMEs and ensure regulations do not hinder technological progress.
Quaylogic can help your organisation risk assess and build the AI and data capability you need to both comply with the EU AI Act 2024 and harness the power of AI to drive revenue growth.
