EU AI Act Enforced: What Tech Companies and Users Need to Know About New Restrictions

The European Union’s recently passed AI Act came into force on Thursday. It limits the kind of AI that tech companies can use and mandates that they disclose all relevant information to users.

The new rule is expected to stir in the rapidly evolving field of artificial intelligence (AI), having been passed in draft form last year. Ahead of the law’s implementation this week, Apple and Meta, among other businesses, have rearranged their plans to introduce AI technologies in other locations, including the US. 150 tech executives from businesses like Airbus, ARM, and Meta opposed the bill modification in an open letter at the time of last year’s draft.

Also Read: World First AI Act Passed by European Parliament; New Laws for Artificial Intelligence Restrictions

What effects will the law have on users?

According to the act, IT companies must ensure that AI systems implemented in Europe are traceable, safe, transparent, and non-discriminatory. The legislation categorizes the risks associated with AI as unacceptable, high, limited, or acceptable. 

However, it requires that even AI systems that do not fit into the first two categories comply with EU copyright laws and transparency standards. Businesses that break the law risk fines of up to 35 million euros, or around $37.7 million, or 7% of their yearly sales. 

This law will have a greater impact on users in Europe than on those in the US. Products that may be released in the US and other non-EU countries will probably be revised, delayed, or not released at all. However, it’s unclear how US consumers may be affected if, for example, they work in Europe and employ some of that AI technology in their businesses.

Also Read: EU asks Microsoft to clarify the risks associated with AI in Bing

It’s unclear how a non-EU user travelling through EU countries would be allowed to utilize some of these AI capabilities, particularly if they have to rely on servers in countries where the technology is restricted or banned altogether.

Longer development periods could result in technological advancements like Apple Intelligence, as the business works to provide regionally-specific software versions. Apple’s timeframe for Apple Intelligence already seems to be changing.

More importantly for American tech users, large American tech companies may very well fight against European law since it may provide a framework for federal or state laws in the US. 

Also Read: Join Meta’s AI Startup Program: Boosting European Innovation with Open-Source Models