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Mahesh

18/12/23 11:43 AM IST

An overview of the European Union’s Artificial Intelligence Act

In News
  • The European Union’s Artificial Intelligence (AI) Act is a significant legislative initiative aimed at regulating artificial intelligence technologies within the EU.
Features of the act
  • The legislation categorises AI applications into different risk levels, ranging from unacceptable to low.
  • This approach enables tailored regulations, with higher-risk applications subject to more stringent requirements.
  • This flexibility acknowledges AI technologies’ diverse potential impact on society.
  • It also explicitly prohibits certain AI practices deemed unacceptable, such as social credit scoring systems for government purposes, predictive policing applications, and AI systems that manipulate individuals such as emotional recognition systems at work or in education.
  • This prohibition reflects the EU’s commitment to preventing the misuse of AI technologies.
  • The EU AI Act emphasises transparency and accountability in AI development and deployment.
  • It requires developers to provide clear information about the capabilities and limitations of AI systems, enabling users to make informed decisions.
  • Additionally, the legislation mandates that developers maintain comprehensive documentation to facilitate regulatory oversight.
  • Moreover, to ensure compliance with the regulations, the EU AI Act introduces the concept of independent conformity assessment.
  • Higher-risk AI applications like medical devices, biometric identification, and access to justice and services, must undergo assessment processes conducted by third-party entities.
  • This approach enhances objectivity and reduces the risk of conflicts of interest, contributing to the credibility of the regulatory framework.
Limitations
  • One of the criticisms of the EU AI Act is the challenge in accurately defining and categorising AI applications.
  • The evolving nature of AI technologies may make it difficult to establish clear boundaries between different risk levels, potentially leading to uncertainties in regulatory implementation.
  • The Act aims to ensure ethical AI practices, some fear that overly restrictive measures could stifle innovation and drive AI development outside the EU. 
  • The resources required for conformity assessments and documentation may disproportionately affect smaller players in the AI industry, potentially limiting their ability to compete with larger, more established counterparts.
  • Striking the right balance between regulation and fostering innovation is crucial, with critics arguing that the EU AI Act may lean too heavily towards stringent controls.
Global Implications
  • As a major economic bloc, the EU’s regulatory framework may set a precedent for other regions, shaping the trajectory of AI development on a global scale, just like the MiCa regulation did for crypto-assets.
  • By prioritising ethical considerations and fundamental rights, the EU AI Act contributes to the establishment of global norms for AI development. And the impact on innovation and competitiveness will depend on the balance struck by the EU between regulation and fostering a conducive environment for AI development.
  • It encourages collaboration and cooperation between regulatory authorities, fostering a unified approach to AI regulation.
  • International collaboration in regulating AI technologies is essential to address global challenges and ensure consistent standards across borders.
Fines in the act
  • Any individual has the right to report instances of non-compliance.
  • The EU member states’ market surveillance authorities will be responsible for enforcing the AI Act.
  • There will be specific limits on fines applicable to small and medium-sized enterprises (SMEs) and start-ups.
  • The EU will establish a centralised ‘AI office’ and ‘AI Board.’
  • In case businesses do not adhere to the EU AI Act, fines could range from $8 million to almost $38 million, depending on the nature of the violation and the company’s size.
  • For instance, fines may amount to up to 1.5% of the global annual turnover or €7.5 million for providing incorrect information, up to 3% of the global annual turnover or €15 million for general violations, and up to 7% of the global annual turnover or €35 million for prohibited AI violations.
Way forward
  • The EU’s AI Act represents a significant step towards regulating AI technologies responsibly and ethically.
  • While it addresses key concerns associated with AI, such as transparency, accountability, and risk mitigation, there are challenges and potential drawbacks that need careful consideration.
  • The global impact of the EU AI Act and its potential to shape international norms make it a landmark initiative in the ongoing discourse on the responsible development and deployment of artificial intelligence.
Source- The Hindu

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