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COINTURK FINANCE > Business > European AI Act Enters into Force
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European AI Act Enters into Force

Overview

  • European AI Act officially comes into force.

  • It introduces a risk-based framework for AI regulation.

  • Stakeholders are invited to contribute to shaping the final guidelines.

COINTURK FINANCE
COINTURK FINANCE 11 months ago
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The European Commission officially announced that the European Artificial Intelligence Act (AI Act) has come into effect. This new legislation is designed to encourage responsible development and deployment of AI technologies within the European Union. The Act offers clear guidelines and responsibilities for both developers and users of AI, while simultaneously minimizing administrative and financial burdens for businesses. It also aims to address potential risks to citizens’ health, safety, and fundamental rights.

Contents
Framework for AI RegulationCommitment to Human Rights

When the AI Act was proposed in April 2021, it aimed to create a reliable and standardized framework for AI usage across the EU. The AI Act’s introduction follows a period of discussions and agreements reached by the European Parliament and the Council in December 2023. The Act’s risk-based approach categorizes AI systems into different risk levels, ranging from minimal to unacceptable, each with specific obligations and prohibitions.

Framework for AI Regulation

The framework introduced by the AI Act ensures uniformity across EU nations. It categorizes AI systems into four risk levels: minimal, specific transparency, high, and unacceptable. Low-risk systems, like spam filters and AI-enabled video games, face no obligations but can voluntarily adhere to additional conduct codes. Systems with specific transparency risks, such as chatbots, must inform users they are interacting with a machine. High-risk systems, including AI in medical software and recruitment, must meet stringent requirements, including risk mitigation and human oversight. AI systems posing unacceptable risks, like social scoring, are outright banned.

Commitment to Human Rights

The EU aims to lead in secure AI development by ensuring that its regulatory framework is grounded in human rights and fundamental values. This regulatory approach is expected to improve various sectors, offering better healthcare, safer transport, and enhanced public services for citizens. It also fosters innovation in energy, security, and healthcare, boosting productivity and efficiency in manufacturing for businesses. Governments stand to benefit from more sustainable and cost-effective services in transport, energy, and waste management.

A consultation on a Code of Practice for providers of general-purpose AI (GPAI) models has been initiated. The Code will address transparency, copyright rules, and risk management, and is expected to be finalized by April 2025. Providers of GPAI, businesses, civil society representatives, rights holders, and academic experts are invited to contribute their insights, which will inform the Commission’s draft of the Code. The feedback will also support the AI Office in overseeing the implementation of the AI Act’s rules.

The new AI framework marks a significant step in the EU’s regulatory landscape. Historically, EU nations have grappled with disparate AI regulations, complicating cross-border AI development and deployment. The AI Act aims to resolve these inconsistencies, creating a more cohesive environment for AI innovation. By setting clear standards and promoting human rights, the EU seeks to balance technological advancement with ethical considerations.

The implementation of the AI Act is poised to bring transformative changes across various sectors. By establishing rigorous standards and ensuring transparency, the EU sets a precedent for other regions considering AI regulation. Stakeholders from multiple sectors are expected to actively engage in shaping the final guidelines, ensuring that the AI Act remains relevant and effective in a rapidly evolving technological landscape.

In conclusion, the European AI Act is a significant legislative move aimed at standardizing AI practices across the EU. It introduces a risk-based approach to AI regulation, ensuring that systems posing the highest risks adhere to stringent requirements while prohibiting those considered unacceptable. This regulatory framework is expected to drive innovation, improve public services, and enhance productivity across various sectors. The Act also underscores the EU’s commitment to safeguarding human rights and fundamental values, establishing a model for responsible AI governance worldwide. Stakeholders are encouraged to participate in the ongoing consultation process to fine-tune the regulations and ensure their practical applicability.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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