[TMT] Understanding The First-Ever AI Act

Artificial Intelligence ("AI") has found widespread applications across virtually every industry, empowering businesses with intelligent automation, data-driven insights, and cutting-edge solutions. Since last year, discussions surrounding AI have reached new heights as its disruptive capabilities and potential benefits continue to captivate the world, prompting deeper exploration and contemplation of its impact on society.

In our previous alert, we explored the possibility of AI replacing legal professionals. In this alert, we shift our focus to the recently passed EU Artificial Intelligence Act ("EU AI Act"), which aims to regulate the swift progression of AI. The Act garnered substantial support in the EU Parliament, receiving 499 votes in favour out of a total of 620 votes.¹ Prior to its formal adoption, the EU AI Act's final step involves a trilogue between the EU Parliament, Commission, and Council, which is set to conclude by the end of 2023.²