Inside The AI Act: What Companies Need To Know

On December 8, 2023, the Council of the European Union and the European Parliament reached a provisional agreement on the Artificial Intelligence Act, commonly referred to as the 'AI Act'. This proposal is poised to set a global standard for AI regulation, akin to the General Data Protection Regulation's (GDPR) influence on data privacy. In this article, we'll delve into the critical aspects of the proposed act and examine its implications for affected businesses.

Understanding the AI Act's Core Principles

The AI Act is the EU's proposed regulation impacting AI systems. Its objective is to ensure the safety of AI systems used in the EU and their adherence to fundamental rights and EU values. The core principle is to regulate AI based on its potential to cause harm to society, employing a 'risk-based' approach where higher risks warrant more stringent rules.