The European Union's Artificial Intelligence (AI) Act, which took effect on August 1, requires AI developers to comply with strict measures and imposes heavy fines for violations. violation.
The European Union has published the final text of the Artificial Intelligence (AI) Act , marking the world's first comprehensive set of AI rules. After being approved by the EU Council in May 2024, the Act will be implemented from August 1, 2024. The law aims to minimize risks from 'high-risk' AI applications, protecting democracy, human rights, the environment and the rule of law.
However, new AI regulations pose major challenges for companies around the world, especially Chinese companies. Patrick Tu, co-founder and CEO of Hong Kong-based Dayta AI, predicts operating costs will increase by 20% to 40% to comply with strict EU rules. This represents a broader financial and operational impact for global AI developers.
The AI Act requires EU-based AI developers to implement its regulations by August 2, 2026. Each EU member state must create at least a controlled testing mechanism for AI technology (regulation sandbox), providing an environment for developers to test AI systems within legal limits without hindrance. Technological development.
For biometric AI developers, vendors and users, the deadline is February 2, 2025. The law bans AI applications that pose “unacceptable risks,” including biometric classification based on sensitive characteristics, emotion recognition in work and school settings, and bulk photo collection. Face images for facial recognition databases. Notably, there are specific exemptions for law enforcement under certain conditions.
By May 2, 2025, the newly established AI Office will issue codes of practice to guide AI vendors on compliance. General purpose AI systems, like ChatGPT, must comply with copyright and transparency standards starting in August 2025. Developers of high-risk AI systems have until August 27, 2027 to meet the additional requirements set out in Schedule I of the AI Act.
Penalties and legal implications for violations of the AI Act
The AI Act imposes strict penalties if businesses fail to comply, ranging from 35 million euros ($38 million) to 7% of a company's total revenue in the previous year, whichever is higher. Emma Wright from law firm Harbottle and Lewis commented, “The EU AI Act is the first major attempt to regulate AI globally. It remains to be XEM whether compliance costs will stifle innovation or whether the AI governance model will become a key export for the EU.”
The rapid development of AI technology, especially generative AI like ChatGPT, has outpaced regulatory efforts. Countries and trading blocs around the world are trying to establish legal frameworks to regulate the use of AI, reflecting a growing awareness of the need for AI governance.
