The EU AI Act: A General Overview

5 min read

The EU AI Act Explained: What You Need to Know About the New AI Rules

Artificial intelligence (AI) is a technology that is rapidly changing our lives – from Netflix recommendations to advanced healthcare. We see AI in our smartphones, in smart home devices, and even in the cars we drive. AI has the potential to automate processes, solve problems faster, and create new possibilities that were previously unthinkable. But with these rapid developments come challenges. How do we ensure AI remains safe, fair, and transparent? How do we prevent this technology from doing more harm than good? This is where the EU AI Act comes in.

The Core of the AI Act

The EU AI Act aims to deploy AI in a safe and ethical manner. This is done through a risk-based approach, where AI systems are categorized based on the risk they pose to the rights and freedoms of individuals. The law wants to ensure that AI improves our lives while protecting fundamental rights.

The Four Risk Levels of AI

To manage the risks of AI systems, the AI Act categorizes AI applications into four risk levels. These levels help determine what rules and controls are needed for different types of AI systems:

1. AI with Unacceptable Risk

These are AI applications that pose too great a risk to human rights and safety and are therefore completely prohibited. Think of AI systems for social scoring, as we know from China, where people are rated on their behavior. Other examples include AI systems that manipulate people through subliminal techniques or exploit vulnerabilities of specific groups.

2. AI with High Risk

AI systems that pose a significant risk to people, such as AI in medical devices or facial recognition systems. These applications may be used, but only if they meet strict conditions, such as transparency and thorough testing. For example, AI used in recruitment procedures or credit assessment. These systems can have a major impact on people's lives, and therefore must meet strict requirements, such as extensive risk analysis, continuous monitoring, and human oversight to prevent errors or bias.

3. AI with Limited Risk

These applications have a moderate risk and mainly require transparency. Examples are AI chatbots that must clearly indicate that you are talking to an AI. The goal here is for people to be aware that they are communicating with an AI system and that no false expectations are created. Transparency is important to build trust in AI and ensure users know what to expect. Additionally, these systems must comply with rules for responsible data use to avoid unnecessary privacy risks.

4. AI with Minimal Risk

Most AI systems fall into this category, such as AI that helps you organize your email or predicts your music preferences. There are hardly any rules for these systems because they carry minimal risks. The use of AI in these applications mainly brings benefits, such as convenience and efficiency, without significant associated risks. Because the risk is low, the legislator does not want to restrict innovation in this area, allowing companies and developers to fully experiment and innovate with AI applications that make daily life easier.

Prohibited AI Practices

Some AI applications are considered unacceptable by the AI Act and are therefore prohibited. Examples include systems that manipulate people by misleading vulnerable groups (such as children), or AI used to influence people through subliminal techniques without them realizing it. Other prohibited applications include AI systems used for mass surveillance without proper legal basis or AI used for 'predictive policing' where certain population groups are monitored extra based on algorithms. These prohibitions are intended to protect citizens' rights and freedoms and ensure that AI is deployed in a way that aligns with European values and standards.

What Does This Mean for Companies?

For companies developing or using AI, the AI Act means they need to carefully examine the type of AI they deploy. High-risk AI systems must meet strict requirements, such as detailed documentation, risk analyses, and human oversight. Companies must also be transparent about the use of AI, especially when it comes to systems that directly interact with consumers. This means, for example, that companies using AI for personnel selection or creditworthiness must provide a clear explanation of how the AI arrived at a particular decision. For some companies, this will mean adapting their processes to comply with the new rules. Compliance can cost time and money but also offers benefits, such as improved reliability and customer trust. Additionally, compliance with the law can ensure that companies are at the forefront of responsible AI development, which can give them a competitive advantage.

Conclusion

The EU AI Act is an important step toward responsible deployment of artificial intelligence. It provides a framework in which innovation can flourish while protecting people's rights. While the regulations may be challenging for companies, they also open the door to safer and more reliable AI applications – a win-win for both society and technology. AI has the potential to improve our lives in countless ways, from healthcare to education and from mobility to sustainability. The AI Act ensures that this technology is deployed responsibly, making the benefits of AI accessible to everyone without unnecessary risks. It's about harnessing AI as a force for good while ensuring there are safeguards to protect individual rights and freedoms. With the right balance between regulation and innovation, AI can make an important contribution to a better future for us all.

Test Your Knowledge 🎯

Now that you have an overview of the EU AI Act, are you ready to test your knowledge?