European Union’s landmark AI law came into force on Thursday, with Brussels pledging that it will foster innovation while safeguarding citizens’ rights. Earlier this year, the EU adopted the world’s first comprehensive regulations to govern AI, particularly powerful systems like OpenAI’s ChatGPT, following challenging and tense negotiations.
Although the rules were first proposed in 2021, they gained urgency when ChatGPT emerged in 2022, demonstrating generative AI’s human-like ability to produce eloquent text in seconds. Other examples of generative AI include DALL-E and Mid-journey, which can create images in various styles based on simple everyday language inputs.
“With our artificial intelligence act, we create new guardrails not only to protect people and their interests but also to give businesses and innovators clear rules and certainty,” said European Commission President Ursula von der Leyen.
Companies must comply by 2026, but rules covering AI models like ChatGPT will take effect 12 months after the law’s enforcement. Strict bans on using AI for predictive policing based on profiling and systems that use biometric information to infer an individual’s race, religion, or sexual orientation will apply six months after the law’s enforcement.
The law, known as the “AI Act,” adopts a risk-based approach: high-risk systems impose stricter obligations on companies to protect citizens’ rights. The greater the risk to Europeans’ health or rights, the stricter the requirements for companies to prevent harm.
“The geographic scope of the AI Act is very broad, so organizations with any connections to the EU in their business or customer base will need an AI governance program in place to identify and comply with their obligations,” said Marcus Evans, partner at law firm Norton Rose Fulbright.
Companies violating rules on banned practices or data obligations face fines of up to seven percent of their worldwide annual revenue. In May, the EU established an “AI Office” comprising tech experts, lawyers, and economists to ensure compliance with the new law.
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