Introduction
In recent years, technology has witnessed tremendous advancements, with artificial intelligence (AI) at the forefront of these changes. The European Union aims to establish a comprehensive regulatory framework through the new Regulation No. 2024/1689 to ensure the safe and responsible use of AI, while fostering innovation and preserving the core values of the Union. This regulation, adopted by the European Commission, the EU’s main executive body, will come into force on December 30, 2024, and become binding from June 30, 2025. This article highlights the key aspects of this long-awaited law.
The Importance of the New Regulation
This regulation responds to the need to regulate the use of AI systems in a way that enhances public trust and protects fundamental rights. While AI offers numerous economic and social benefits, it also poses significant risks that require careful regulation.
Compliance Requirements
The new regulation imposes strict requirements on developers and users of AI systems, including:
- Risk Assessment: Operators must assess the potential risks of AI systems before market deployment.
- Transparency: Clear information about how AI systems operate and make decisions must be provided.
- Accountability: Responsibilities must be clearly defined to ensure traceability of any damage resulting from the use of AI systems.
Prohibition of High-Risk Systems
The European law permits or prohibits the use of AI based on the risks it poses to people. The law identifies high-risk systems that can only be used if they respect fundamental rights. It prohibits AI systems for biometric classification based on political, religious, or philosophical beliefs, race, or sexual orientation. It also bans systems that evaluate individuals based on behavior or personal characteristics or exploit human behavior.
Personal Data Protection
The regulation emphasizes the importance of protecting personal data, in line with the EU’s General Data Protection Regulation (GDPR). Operators must ensure user data is protected and processed securely and responsibly. The law prohibits systems from expanding or creating facial recognition databases captured randomly from the internet or through audio and video recordings. However, the law allows exceptions for security agencies to use biometric identification cameras with judicial authorization to prevent terrorist threats.
Support for Innovation
The regulation fosters innovation by encouraging small and medium-sized enterprises (SMEs) to develop and use AI technologies. It provides a framework that promotes investment in new technologies without compromising safety and fundamental rights. Under the law, content created using AI, such as texts, images, or videos, must be labeled to protect viewers from misleading content like deepfakes.
Penalties and Monitoring
High-risk systems must obtain certification from accredited bodies before being marketed in the EU. The new “AI Office” will oversee the implementation of this regulation across the bloc. Non-compliance can result in fines of up to €35 million ($38 million) or 7% of the company’s annual revenue, depending on the nature of the violation.
Conclusion
The new regulation represents a significant step towards regulating AI use in the EU. By setting clear and transparent rules, the Union aims to foster innovation while protecting citizens’ rights. This regulation is part of broader efforts to ensure AI serves as a force for good in society. Following the legislative process for the AI Act, member states will be required to incorporate it into their national laws, considering future challenges like the shortage of AI experts within the EU.
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Written By:
Ms. Rana Al Shoufi – Legal Consultant & Head of legal Coordination Department at Al Safar and Partners Law Firm
