The European Union (EU) and Council negotiators have reached a provisional agreement on the proposed Artificial Intelligence Act (AI Act), aiming to establish the world’s first comprehensive rules governing AI.

“The AI Act is a global first. A unique legal framework for the development of AI you can trust. And for the safety and fundamental rights of people and businesses. A commitment we took in our political guidelines – and we delivered. I welcome today’s political agreement,” EU’s president, Ursula von der Leyen posted on X.

The primary goals of the act is to ensure the safe and ethical use of AI, protect fundamental rights, democracy, and environmental sustainability, and bolster innovation to position Europe as a leader in the AI field.

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The key provisions of the AI Act include the prohibition of high-risk AI applications that pose potential threats to citizens’ rights and democracy. These banned applications include biometric categorisation systems using sensitive characteristics, untargeted scraping of facial images for facial recognition databases, emotion recognition in workplaces and educational institutions, social scoring based on personal characteristics, AI systems manipulating human behaviour to circumvent free will, and AI used to exploit the vulnerabilities of individuals.

The agreement has special rules for when the police use biometric identification systems, like face recognition, in public places. Before they can use these systems, they need permission from a judge, and there are specific rules about the kinds of crimes they can use them for.

General artificial intelligence systems, particularly general-purpose AI (GPAI) models, are mandated to adhere to transparency requirements, including technical documentation, compliance with EU copyright law, and dissemination of detailed summaries about training content.

To support innovation, especially for small and medium-sized enterprises (SMEs), the agreement promotes regulatory sandboxes and real-world testing, allowing national authorities to develop and train innovative AI solutions before market placement.

Non-compliance with the AI Act may result in fines ranging from 35 million euros or 7% of global turnover to 7.5 million euros or 1.5% of turnover, depending on the infringement and company size.

The AI Act, once formally adopted by both the Parliament and Council, will become EU law, with further votes expected in Parliament’s Internal Market and Civil Liberties committees.

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