• Sun. Jun 23rd, 2024

Preparing for EU AI Regulations: A Comprehensive Guide for Companies”.

BySamantha Nguyen

Jun 11, 2024
EU implements new regulations for Artificial Intelligence: companies must act promptly

As the turn of the year approaches, companies should be proactive in preparing for the expected regulations around AI to take effect. According to Alexandra Ciarnau and Axel Anderl from the Vienna law firm Dorda, it is essential for companies to identify any AI applications they are using and determine if they fall under regulation. Using prohibited AI can result in penalties, which are set to take effect later this year or early next year. Companies must appoint AI Managers and ensure that there is appropriate expertise within the organization to handle AI projects.

Companies planning AI projects must consider the European legal framework. It is important to assess the users of AI tools and the risks they may pose to employees, customers, or external parties. Prohibited uses of AI come with strict regulations. For example, emotion recognition in the workplace is not allowed under EU law.

Most applications in domestic companies are expected to fall within the lower risk categories of the EU’s approach to AI regulation. Transparency rules dictate that AI-generated content be labeled and users must be informed when they are interacting with AI. Companies that purchase AI systems from third parties are also responsible for ensuring compliance and taking necessary measures to mitigate risks.

In case of damages, companies can seek recourse against manufacturers, although enforcement against foreign manufacturers may be challenging. European manufacturers have a better understanding of regulations and enforcing compliance is easier.

Providers of AI systems themselves must disclose basic functions and training data. The details will likely be determined by court decisions.

Complying with European regulations is crucial for all stakeholders in the AI ecosystem. Failure to comply with these regulations can result in significant fines for non-compliance that can reach up to millions of euros.

It is essential for companies operating in Europe or doing business with European partners to understand these regulations fully before implementing any new projects involving artificial intelligence.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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