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The European Parliament has approved the EU AI Act, marking the world's first major legislation to regulate the use and deployment of artificial intelligence applications. The law will impact organizations developing and deploying AI tools, extending its reach beyond EU borders to any company interacting with EU residents. The legislation aims to create transparency and risk assessment requirements for the entire AI lifecycle, with significant fines for non-compliance.
The EU AI Act covers banned uses of AI, obligations for high-risk AI systems, and transparency requirements. It prohibits AI applications that threaten human rights, such as biometric categorization systems and emotional monitoring. Organizations using high-risk AI systems must conduct risk assessments, ensure transparency, and provide human oversight. However, compliance challenges may arise due to the complexity of transparency rules and the evolving nature of AI technology.
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