Europe Paving The Way For AI Regulation: The Draft AI Act Is Making Progress

Since the release of the highly anticipated draft Artificial Intelligence (AI) Act (the "AI Act") over a year ago, the third and final of the three EU core institutions, the European Parliament, has approved its draft AI Act.¹ The next step is for EU lawmakers and member states to negotiate the final details of the bill. This represents the most ambitious attempt to regulate AI technologies globally to date, setting out a cross-sectoral regulatory approach to the use of AI systems across the EU.

In order to comply with the draft AI Act in its current form, any company that develops or deploys AI systems must prepare to enact a risk analysis of each of their AI applications. Any AI practices identified that fall under 'unacceptable' will be prohibited by the draft AI Act and 'high risk' systems will need to comply with certain mandatory requirements, or otherwise face penalties. The draft AI Act's inherent aim is to regulate the use of AI systems that may impeach on