Historic AI Regulation Bill Passed by European Union (EU) Lawmakers

Lawmakers of the European Union (EU) parliament on Wednesday passed the landmark Artificial Intelligence Act. With it, they stepped one step forward towards adopting the world’s first major set of comprehensive rules regulating AI technology like the ChatGPT.

Under the AI Act of the EU, all artificial intelligence would be classified under four levels of risk.

The AI technology estimated to be an unacceptable risk, such as systems that judge people based on behavior, known as “social scoring,” as well as predictive policing tools, would be completely banned. AI targeting children, vulnerable populations, and hiring practices would face tougher scrutiny.

The new regulations would also require greater privacy standards, stricter transparency laws, and steeper fines for failing to cooperate.

It is proposed that corporate violators may face fines of up to $33 million or 6 percent of the company’s annual global revenue. It could mean billions of dollars for tech giants such as Google or Microsoft.

The AI Act was first proposed in 2021. But efforts for its materialization accelerated after the release of ChatGPT in 2022.

Final approval of the bill by the EU is expected by the end of 2023. The United States and China are also trying to take the lead in the formulation of regulatory rules for the use of AI. Last week Britain announced that it would host the world’s first summit on AI in London.