𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐂𝐨𝐮𝐧𝐜𝐢𝐥 𝐚𝐧𝐝 𝐏𝐚𝐫𝐥𝐢𝐚𝐦𝐞𝐧𝐭 𝐑𝐞𝐚𝐜𝐡 𝐇𝐢𝐬𝐭𝐨𝐫𝐢𝐜 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭 𝐨𝐧 𝐖𝐨𝐫𝐥𝐝’𝐬 𝐅𝐢𝐫𝐬𝐭 𝐀𝐫𝐭𝐢𝐟𝐢𝐜𝐢𝐚𝐥 𝐈𝐧𝐭𝐞𝐥𝐥𝐢𝐠𝐞𝐧𝐜𝐞 𝐀𝐜𝐭

• December 11, 2023
• Andrew

The European Council and Parliament have reached a provisional agreement on the world’s first comprehensive rules for artificial intelligence (AI), known as the Artificial Intelligence Act. This landmark legislation aims to ensure the safety and protection of fundamental rights in AI systems placed on the European market. The agreement follows extensive negotiations and addresses a global challenge in the fast-evolving technological landscape, striking a balance between promoting innovation and respecting citizens’ rights.

Key elements of the provisional agreement include:

1. Risk-Based Regulation: The AI Act adopts a risk-based approach, with stricter rules for high-risk AI systems that could cause harm to society.

2. Prohibitions and Restrictions: Certain AI practices, such as cognitive behavioural manipulation and untargeted scraping of facial images, are prohibited. The agreement also outlines specific bans on AI applications, ensuring the protection of fundamental rights.

3. Law Enforcement Exceptions: Recognising the unique needs of law enforcement, the agreement allows for the use of AI systems in urgent situations, subject to safeguards and protections of fundamental rights.

4. Governance Architecture: The establishment of an AI Office within the Commission, a scientific panel of independent experts, and an AI Board comprising member states’ representatives to oversee and enforce regulations.

5. Penalties: Fines for violations are set as a percentage of the offending company’s global annual turnover, with proportionate caps for SMEs and startups to avoid disproportionate financial burdens.

6. Transparency and Fundamental Rights: A fundamental rights impact assessment is required for high-risk AI systems, and increased transparency measures are introduced. Public entities using high-risk AI systems must register in the EU database.

7. Support for Innovation: The agreement includes measures to support innovation, such as AI regulatory sandboxes for testing innovative systems in real-world conditions and provisions to alleviate administrative burdens for smaller companies.

8. Entry into Force: The AI Act is expected to apply two years after it enters into force, with specific provisions having exceptions.

The agreement is considered a historic achievement with the potential to set a global standard for AI regulation, akin to the General Data Protection Regulation (GDPR). The next steps involve finalising technical details, obtaining endorsement from member states’ representatives, and formal adoption by both institutions. The proposal aligns with the EU’s broader strategy to foster the development of safe and lawful AI across its single market.
Source: Artificial Intelligence Act: Council and Parliament strike a deal on the first rules for AI in the world

Council of the EU, Press Release
9 December 2023