EU's Proposed Artificial Intelligence Regulation: The GDPR Of AI

On April 21, 2021, the European Commission revealed its proposed Regulation laying down harmonized rules on artificial intelligence (the "Proposed Regulation"). If adopted, the Proposed Regulation will have significant implications for businesses both inside and outside the EU that help make AI available in the EU. As the first of its kind, the Proposed Regulation may also influence how other countries, including Canada, regulate AI, similar to how the EU General Data Protection Regulation ("GDPR") has influenced how other countries regulate privacy. Like the GDPR, the Proposed Regulation provides for severe penalties for non-compliance. It contemplates administrative fines for certain offences of up to ?30 million or, if the offender is a company, 6% of its total worldwide annual turnover (whichever is higher), with lesser fines for lesser offences.¹  Thus, the Proposed Regulation is a major regulatory development that has the potential to shape global standards in