Artificial Intelligence's development is shaping the
present and future of the world, moulding industries and
transforming lives. However, not all AI systems are created
equally, creating the need to distinguish, regulate and potentially
stifle certain developments and innovations. Whilst the development
of AI creates boundless opportunities, it also creates a unique set
of challenges that, if handled inadequately, could have serious
negative consequences, as we shall consider below.
The European Union has taken a lead in aiming to “tame the
beast” that is AI through the introduction of the EU AI Act
(“AI Act”), which gained the force of law on the
1st August 2024 and will begin its rolling out on
the 2nd February 2025. One such implemented measure
is the hierarchy introduced by the AI Act intended to split and
govern AI differently depending on the nature and application of
the artificial intelligence. The AI Act differentiates between four
types of AI: