Risk classification: The EU AI Act bans AI in situations such as social scoring systems, emotional recognition systems in schools and workplaces, AI used to exploit people’s vulnerabilities – such as their ages or disabilities – and police scanning using AI-powered remote biometric systems, except for serious crimes. High-risk AI systems will require conformity assessments to ensure they meet safety and data protection requirements before being put on the market.
General purpose AI requirements: General purpose AI systems, which have a wide range of possible uses, will be subject to specific requirements under the EU AI Act. These include detailed summaries of data gathered from the internet to train these models, labeling AI-generated deep fakes as artificially manipulated, and requiring companies to provide some of the most significant models to assess and mitigate risks. Companies must also report serious incidents and disclose their energy use.
Innovation-friendly approach: To foster innovation and design for regulatory compliance, the EU AI Act introduces regulatory sandboxes. These allow for real-world research, development and testing of AI technologies under less stringent regulations. This approach encourages the responsible development of AI while supporting innovation.
Shared accountability for ongoing monitoring: Once an AI system is on the market, EU authorities will monitor for proper risk classification. Builders and developers providing AI systems will need to maintain human oversight and post-market monitoring. Buyers and subscribers of AI will need to report serious incidents and malfunctions.
Penalties: The European Commission’s AI Office, responsible for overseeing AI systems based on a general-purpose AI model, will function as a market surveillance authority. National market surveillance authorities will be in charge of supervising all other AI systems. The AI Office’s primary objective is to coordinate governance among member countries and enforce rules related to general-purpose AI.
Member-state authorities will establish regulations concerning penalties and enforcement measures, including warnings and non-monetary penalties. Individuals can file complaints of infringement with their national competent authority, which can then initiate market surveillance activities. The Act does not provide for individual damages.
Penalties for prohibited AI violations can reach up to 7% of a company’s global annual turnover or 35 million Euro. Most other violations are subject to penalties of up to 3% of global annual turnover or 15 million Euro. Providing incorrect information to authorities may result in penalties of up to 1% of global annual turnover or 7.5 million Euro.
The AI Board will play a crucial role in advising on the implementation of the Act, coordinating between national authorities, and issuing recommendations and opinions.
Source: Barandbench
