The world’s first comprehensive legal framework for artificial intelligence has been finalized. European Union lawmakers on Wednesday approved the bloc’s AI Act, which is likely to shape the approach of U.S. technology companies. As whole, the legislation aims to protect European citizens’ rights from certain applications of AI and bring stricter oversight to the technology overall. Companies like Alphabet, Amazon.com, Microsoft, and Meta Platforms will be affected by the Act, as the EU’s rules apply to anyone providing AI within the bloc. Beyond that, the so-called Brussels Effect often causes the EU’s rules to become the effective international standard. The potential penalties contained in the AI Act are considerable, including 7% of a company’s global annual turnover in the previous financial year for violations involving banned AI applications. The law passed the European Parliament with 523 votes in favor, 46 against, and 49 abstentions. The overwhelming majority should ensure it will be signed off on by the EU’s member states. The main issue was whether the Act’s risk-based approach would apply to foundation models—the most powerful AI systems that can be adapted to different tasks, such as OpenAI’s GPT-4. Some member states were calling instead for the regulation to apply only to specific AI use cases—such as a chatbot or image generator—while foundation models would be self-regulated via codes of conduct. The intent was to avoid putting burdensome regulation on domestic European AI companies, such as France’s Mistral and Germany’s Aleph Alpha. The result was a compromise. Under the framework, foundation models generally only face transparency obligations, meaning they must disclose material—including the content used for training the AI—and their compliance with copyright law. However, the act introduces a stricter regime for “high impact” foundation models—those trained with the largest amount of computing power—including performing model evaluations, assessing and mitigating systemic risks, and reporting on incidents.
Full story : A look at the world’s first artificial intelligence legislation and how it can affect big tech.
