The EU Artificial Intelligence Act

15 Jul The EU Artificial Intelligence Act

The EU AI Act was entered into the EU’s statute books on July 12, 2024. A transition period will begin from 1 August when it enters into force. The geographic scope is very broad, with obligations falling on organisations using or involved in the supply of AI in the EU and organisations operating outside the EU where the AI’s output is used in the EU.

This overview is brought to you by our member Norton Rose Fulbright.

What are the obligations and penalties?

Penalties are up to €35 million or 7% total worldwide annual turnover for breaches of the prohibitions, with fines of €15 million or 3% total worldwide annual turnover for many provisions and €7.5 million or 1% total worldwide annual turnover for the supply of incorrect, incomplete, or misleading information.  Regulators can also require operators to bring an AI system into compliance or withdraw it from the market.

What should we do to prepare?

Create an AI inventory and identify prohibited practices and high-risk AI.

To establish your governance process, start small and look to build while travelling:

• establish where key stakeholders will fit in and what information they need—business units, IT development teams, data office, procurement, legal, HR
• create a library of legal risks with playbooks to allow some evaluation by non-experts
• understand the importance of triage and right sizing the evaluation process
• understand what specific regulatory requirements will apply and when and the role of standards

Create a process for procuring AI that dovetails to the governance process.

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