The EU AI Act: A Regulatory Turning Point
The enforcement of the Artificial Intelligence (AI) Act of the European Union marks an unprecedented phase in the technological landscape. Starting February 2, 2025, the first obligations must be met by companies operating within the borders of the EU. The Act imposes specific restrictions on AI systems considered high risk.
Key Obligations and Prohibitions
Organizations must face stringent prohibitions regarding certain uses of AI, including social scoring, emotion recognition, and real-time remote biometric identification in public places. These practices, deemed unacceptable, raise major ethical and legal issues.
Sanctions for Non-Compliance
Companies that violate these regulations risk fines of up to 7% of their global annual revenue. Understanding these new standards becomes an absolute necessity for organizations wishing to avoid disastrous financial consequences.
Compliance Challenges Starting Now
Despite the effective obligations starting in 2025, companies must already prepare for proactive compliance. Leaders must conduct a thorough audit of AI usage within their structure to identify potentially problematic cases. A strategic approach is required to ensure compliance and reduce associated legal risks.
Responsibility for Non-Europeans
Companies not based in the EU are not exempt. The Act also applies to foreign organizations that provide AI services or use AI knowing that the data or results affect European users. This opens considerable responsibility for global players.
Importance of Data Governance
Expertise in data governance proves essential to leverage AI investments. A rigorous data management serves as the cornerstone for harnessing AI’s potential while complying with the legal standards imposed by the European Union. Companies must establish strong strategies to ensure their data is of good quality, accurate, and compliant.
Training and Raising Awareness of Teams
Developing a culture of compliance also requires effective employee education. Raising awareness about AI literacy should be integrated into internal training practices. Employees responsible for AI management must be familiar with the risks and requirements associated with using these technologies.
Encouraging Responsible Innovation
The AI Act advocates for responsible innovation, seeking to balance technological progress and ethical considerations. The regulations aim to prevent abuses while promoting transparent and responsible practices within companies.
Regulation of Prohibited Practices
The list of prohibited practices under the Act includes harmful subliminal techniques, exploitation of vulnerabilities, and unfair data collection for facial recognition databases. Companies must be vigilant and adopt measures to ensure their use cases do not fall under this stringent regulation.
Anticipating Regulatory Changes
Organizations must remain alert to potential regulatory developments and adapt accordingly. The regulatory landscape concerning AI is dynamic and may undergo significant changes over time. Adaptability and flexibility are major assets for any company wishing to comply with the European Union’s guidelines.
(Photo by Guillaume Périgois)
For more information: Technologically Charged Plagiarism, Investment in Generative AI, Effectively Protecting Your Data, Identity Fraud and AI, American Action on AI.
Frequently Asked Questions About the EU AI Act
Which companies are affected by the EU AI Act?
All companies using artificial intelligence systems in the EU, including those based outside the EU that offer services or products on the European market, are affected by the new regulations.
What types of AI systems are considered high risk under the AI Act?
High-risk AI systems include, among others, those used for facial recognition, social scoring, or real-time biometric identification in public places.
What sanctions can companies face for non-compliance with the AI Act?
Companies that violate regulations may face fines of up to 7% of their global annual revenue, highlighting the importance of compliance.
How can companies prepare for the implementation of the AI Act?
Companies should audit their use of AI, strengthen their data governance, and train their staff to ensure compliance with the new regulatory requirements.
What are the main prohibitions to comply with under the AI Act?
Prohibitions include practices such as using manipulative techniques, unacceptable social scoring, and emotional recognition in sensitive contexts like work or education.
How does the AI Act affect startups and SMEs?
Startups and SMEs will also need to comply with the new regulations, which may require adaptations to their business models and particular attention to data governance.
What are the transparency obligations imposed by the AI Act?
The Act requires companies to provide clear information about how their AI systems operate, including how data is used and the outcomes achieved.
Does the EU AI Act have implications for data protection?
Yes, the Act is complementary to the GDPR, and companies must ensure the protection of personal data while complying with the new AI regulations.
What are the next steps for companies after the implementation of the AI Act?
Companies should monitor the guidelines provided by the European Commission and prepare for potential changes to the regulatory framework based on feedback.
