European lawmakers pass world's first comprehensive AI act

The European Union has taken a significant step in regulating the rapidly advancing field of artificial intelligence with the passing of the AI Act by the bloc’s parliament on Wednesday.

This comprehensive set of rules, enacted in the absence of similar legislation from the US, could serve as a benchmark for AI governance in the Western world. However, despite its passage, concerns linger among companies that fear the legislation is overly restrictive, while digital watch dogs argue it doesn't go far enough.

Once member states give their approval and the AI Act is published in the EU’s Official Journal, it will become law. The primary objective of this new legislation is to address concerns surrounding bias, privacy, and other potential risks associated with AI technology.

Among its provisions, the law prohibits the use of AI for emotion detection in workplaces and schools, and places limitations on its use in critical contexts such as job application screening. Notably, it also introduces the first regulatory measures on generative AI tools, which gained widespread attention last year with platforms like ChatGPT

However, since the breakthrough provisional agreement was reached three months ago following a marathon negotiation session lasting over 35 hours, the bill has faced criticism.

Both the French and German governments pushed back against some of the more stringent regulations concerning generative AI, citing potential adverse effects on European startups like France’s Mistral AI and Germany’s Aleph Alpha GmbH. Civil society groups such as the Corporate Europe Observatory (CEO) have also raised concerns about the influence of Big Tech and European companies in shaping the final text.

Furthermore, US and European companies alike have expressed worries that the law will hinder the bloc’s competitiveness on the global stage. Despite these apprehensions, lawmakers have acknowledged that there is still much work to be done.

The EU is currently in the process of establishing its AI Office, an independent body within the European Commission. This office is poised to play a crucial role in enforcement, with the authority to request information from companies developing generative AI and potentially prohibit systems from operating within the bloc.

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