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  • Writer's pictureTünde Lukacs

🌐 EU's New AI Act: Transforming Tech Use for You and Your Business

Updated: Dec 20, 2023

The EU has just rolled out a groundbreaking AI law. It's a game-changer for anyone using technology. Let's  break it down into simple, key points:

DALL-E imagining the EU's AI Act
The AI Act making the EU the world's first AI police

1. Mandatory AI Identity Disclosure: AI systems interacting with people, like customer support chatbots, must clearly state they are AI. It's all about being transparent with users. Imagine a chatbot that starts its conversation with, "Hi, I'm a virtual assistant, not a human." This helps in building trust and setting clear expectations.

2. Stricter Rules for the Biggest Ones: The law now looks at 'foundation models' – these are big, flexible AI systems. There's been debate about what to regulate and if it would stop new ideas.

The AI Act says these big AI systems need good records, follow EU copyright law, and be open about their data. The biggest AI systems have more rules. Companies must say how safe and green their AI is.

3. European AI Office: This new office will make sure everyone follows the law, sets it up, and enforces it. It's the first in the world to do this for AI. The EU wants to be the top tech regulator globally. The AI Act also has a scientific panel. This group of independent experts will advise on AI risks and how to categorize and test AI models. Breaking these rules can cost a lot. Fines range from 1.5% to 7% of a company's worldwide sales.

4. Prohibiting Harmful AI Practices: The Act outlaws certain AI applications, especially those that can manipulate or harm users. This includes AI that could encourage harmful behaviors in vulnerable groups like children, or create addictive patterns in consumers. For businesses, it's vital to review their AI applications and ensure they are not only compliant but also ethically responsible.

5. Global Ripple Effect: While this is an EU regulation, it's expected to set a trend globally.

Businesses worldwide should be prepared for similar regulations in their own regions. This means that international strategies involving AI must consider these new standards, even for companies not based in the EU.

The EU's new AI Act is not just a regulatory change; it's a call for ethical AI practice. By adapting to these rules, your business can not only comply but also lead in responsible AI usage. It's an opportunity to innovate ethically and gain a competitive edge in the tech-forward business world. More details in this MIT Technology Review article.

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