Artificial intelligence (AI) is rapidly changing the business landscape, and adhering to current and future AI regulations is vital for your organization. The European Union (EU) is leading the way, and here you’ll find a summary of the EU AI Act and what you need to do to comply.
The EU AI Act is a legislative proposal to regulate artificial intelligence technology within the European Union. It seeks to establish rules and standards for developing, deploying and using AI systems to ensure their safety, transparency and accountability. The Act aims to balance innovation with protecting fundamental rights and values.
Learning how to stay compliant with emerging AI laws probably has you asking questions like:
Challenges of EU AI Act principles
Navigating challenges under the EU AI Act requires a proactive and comprehensive approach.
Ensuring ethical considerations in AI development
Neglecting to embed ethical principles in AI design can result in discriminatory outcomes, erosion of trust in AI systems, and legal liabilities. Without a thorough understanding of ethical frameworks, biases and unfair practices may persist in AI applications.
Establishing accountability throughout the AI lifecycle
Failure to maintain transparency and accountability in AI systems can lead to regulatory penalties, public scrutiny, and erosion of consumer trust. With precise mechanisms for accountability, it becomes easier to trace decision-making processes and rectify errors or biases in AI algorithms.
Safeguarding data privacy and governance
Inadequate data governance practices may result in privacy breaches, regulatory fines and reputational damage. Without robust data protection and privacy compliance mechanisms, there’s a risk of infringing on individuals’ rights and undermining trust in AI technologies.
Ensuring compliance across EU member states
Navigating the complexities of cross-border compliance under the EU AI Act requires harmonization of policies and adherence to varying regulatory requirements across member states. Failure to comply with diverse regulatory frameworks may lead to legal uncertainties, operational disruptions and regulatory penalties.
A summary of the EU AI Act, including: what the Act is and what it covers, high-risk AI development requirements, consequences of non-compliance, Act status, and global impact.
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Ensuring your company’s operations align with the EU AI Act can yield significant benefits. How?
How your organization can comply with EU AI Act expectations
The EU AI Act mandates critical standards for developing, deploying and using artificial intelligence systems. To ensure compliance with these requirements, your company must adhere to the following steps:
Develop comprehensive AI governance policies
Establish robust and well-documented policies for AI governance that align with the principles outlined in the EU AI Act. These policies should encompass the entire AI lifecycle, from design and development to deployment and operation. Clear guidelines on data protection, algorithmic transparency, accountability, and human oversight must be defined.
Implement an AI governance framework
Deploy a comprehensive AI governance framework integrating compliance processes, risk management strategies and monitoring mechanisms. This framework should facilitate transparency, accountability and ethical decision-making throughout the AI lifecycle, promoting trust and responsible AI innovation.
Educate stakeholders on EU AI Act compliance
Begin by educating all relevant stakeholders on the provisions and implications of the EU AI Act. Communications should educate stakeholders on the regulatory framework, emphasizing the importance of ethical AI development, deployment and usage and the consequences of non-compliance.
Effectively manage AI partnerships and collaborations
Given the potential cooperation with third-party entities in AI development and deployment, meticulous management of these relationships is essential. Implement measures preform due diligence and continually screen third parties to ensure transparency, accountability, and data protection in all AI partnerships, including clear agreements on data sharing, intellectual property rights and ethical standards.
Regularly assess and monitor AI systems
Article 3 of the AI Act outlines conformity assessments as the procedure for confirming and/or showing that a high-risk system meets specific criteria specified within the Act. Companies must continuously assess and monitor AI systems to ensure compliance with the EU AI Act. Conduct regular audits, risk assessments, and impact assessments to identify and mitigate potential risks or biases in AI algorithms or decision-making processes.
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The EU AI Act was passed on March 13, 2024. It will become effective in Q2 2024, likely in May.
The Act is enforced by national authorities in each member state. High-risk AI systems require conformity assessments and external audits. Non-compliance can result in fines up to €35 million or 7% of a company’s global turnover
The Act classifies AI systems into four risk levels:
High-risk systems include those used in biometric identification, critical infrastructure, education, employment, public services, law enforcement, and justice
AI systems posing unacceptable risks are banned. Examples include AI used for subliminal manipulation, exploiting vulnerabilities, social scoring, and specific identification in public spaces
Fundamental Rights Impact Assessment (FRIA) is required for high-risk AI systems to evaluate their impact on rights like privacy and non-discrimination.
The latest version and updates can be found on the EUR-Lex website