AI Act Enforced: What’s Next?

On 21st May 2024, the Council of the European Union approved the AI Act, marking the world’s first comprehensive legislation aimed at harmonising rules on artificial intelligence. This is a landmark law which categorises AI systems based on their potential societal risk: limited risk systems face light transparency obligations, high-risk systems must meet stringent requirements to access the EU market, and certain applications like cognitive behavioural manipulation and social scoring are banned due to unacceptable risks. 

The AI Act aims to ensure the development of safe and trustworthy AI systems while protecting fundamental rights and stimulating innovation within the EU. To enforce these regulations, the AI Act establishes a new governance architecture including an AI Office within the Commission, a scientific panel of independent experts, an AI Board with member state representatives, and an advisory forum for stakeholder input. 

Promoting innovation, the AI Act introduces AI regulatory sandboxes for developing and testing new AI systems in real-world conditions. This forward-looking approach ensures a flexible regulatory framework that supports ongoing technological advancements. 

Following the signing by the presidents of the European Parliament and the Council, the AI Act will be published in the EU's Official Journal and enter into force twenty days later, with full application in two years. This legislation not only addresses global technological challenges but also creates significant opportunities for societal and economic growth.

What Does This Mean for Businesses?

Companies that violate the AI Act will face fines based on a percentage of their global annual turnover or a predetermined amount, with proportional penalties for SMEs and start-ups. Transparency is a key focus, with high-risk AI systems and their users required to be registered in an EU database, and users of emotion recognition systems must inform individuals when they are exposed to such technology.

For businesses, this means several key obligations and changes. Firstly, companies developing or deploying AI systems will need to comply with new standards and regulations to ensure their technologies are safe and trustworthy. High-risk AI systems, in particular, will be subject to stringent requirements, including transparency, accountability, and ethical considerations. Businesses must stay informed about these specific requirements and ensure their systems meet the necessary criteria to access the EU market.

EU Member States are required to appoint national enforcement authorities to oversee the implementation of the AI Act. This could lead to fragmentation, with different types of entities being put in charge in various countries. Companies will need to engage with these national authorities and possibly navigate varying regulatory systems across the EU. At the EU level, the AI Office within the EU Commission will play a central role in implementing the Act, particularly for general-purpose AI. Businesses must therefore be prepared to interact with multiple regulatory bodies and ensure comprehensive compliance with both national and EU-level requirements.

How Can Gerrish Legal Help?

Gerrish Legal is a dynamic digital law firm. We pride ourselves on giving high-quality and expert legal advice to our valued clients. We specialise in many aspects of digital law such as GDPR, data privacy, digital and technology law, commercial law, and intellectual property. 

We give companies the support they need to successfully and confidently run their businesses whilst complying with legal regulations without the burdens of keeping up with ever-changing digital requirements. 

We are here to help you, get in contact with us today for more information.