Balancing Innovation And Regulation: A Detailed Analysis Of The AI Act

The EU's new regulatory framework on AI is doubtlessly a pioneering legislative framework that could set a global benchmark, but does it strike the right balance between protection and innovation? Addressing the risks that AI technologies present to people's safety and fundamental rights is of major importance, but so is the need to foster AI innovation in the EU and the uptake of these transformative technologies that could help reinvigorate the EU economy. To be sure, most AI systems are expected to qualify as low/minimal risk and should thus not be (materially) affected by the new rules. On the other end, some AI applications that present unacceptable risks will now be banned while those classified as high-risk will be subject to a particularly heavy regulatory burden. In other words, the administrative burden of this Regulation predominantly falls on entities classified as providers of systems that qualify as high-risk AI systems.