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The European Parliament announced the passage of the 'AI Act' on March 13, 2024, to be implemented in phases starting mid-2025. This legislation aims to regulate AI systems based on risk levels, with varying responsibilities and prohibitions for different categories.
High-risk AI systems, such as those impacting health and safety or fundamental rights, require rigorous assessments and testing to operate in the EU. On the other hand, Limited Risk AI, like generative AI chatbots, emphasizes transparency to prevent deception and ensure user awareness.
The AI Act also addresses Minimal Risk AI, such as recommendation systems, under general laws compliance. However, challenges lie in enforcement, with potential fines for violations and concerns about regulatory ambiguity impacting industry growth and investor confidence.
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