The European Union is introducing innovative regulations on artificial intelligence that may significantly impact the entire technology market. The AI Act, or the Artificial Intelligence Act, is the first such a comprehensive set of regulations aimed at regulating the development, implementation and use of AI technologies. What changes await us and what will their consequences be for technology companies and end users?
AI Act: Main assumptions
The AI Act introduces a number of regulations aimed at increasing transparency and accountability in the use of artificial intelligence. In particular, the new regulations focus on:
Risk categorization: AI technologies will be classified based on the level of risk they may pose to society. High-risk systems, such as those used in healthcare, education and law enforcement, will be subject to strict transparency and testing requirements.
Transparency requirements: Companies will have to disclose information about how their AI models, data sources and algorithms are trained, in order to reduce bias and discrimination in AI systems. Documenting the model creation process will be necessary to enable audit and ensure regulatory compliance.
Security and responsibility: The AI Act requires companies to assess and minimize the risks associated with their technologies, including the systemic risks that may be posed by advanced AI models such as OpenAI’s GPT-4 and Google’s Gemini. An obligation to report incidents and track energy consumption by AI systems has also been introduced.
Sanctions for non-compliance: Companies that do not comply with the new regulations may be subject to heavy fines or blocked from accessing the EU market. The regulations also apply to companies from outside the EU that want to operate in its territory, which is emphasized by the so-called “Brussels effect” – the impact of EU regulations on global standards.
Impact on technology companies
The new regulations will force companies to introduce changes in the processes of creating and implementing AI technologies. This will require:
Compliance investments: Companies will need to invest in new structures and processes to comply with the AI Act, which may include hiring compliance and transparency specialists and developing internal audit procedures.
Increased transparency: The need to disclose details about AI models can lead to increased user trust, but also to the disclosure of competing technology secrets. Companies will have to strike a balance between transparency and intellectual property protection.
Adapting business models: Risk assessment and liability requirements may impact the way companies design and implement their AI solutions. New business models may emerge that better respond to new regulations.
Benefits for society
The introduction of the AI Act aims not only to regulate technology, but also to protect citizens and end-users from potential threats related to AI. The key benefits include:
Increasing trust: Transparency and accountability around AI can help increase user trust in the technology, which is key to its widespread adoption.
Privacy and human rights protection: Regulations on data and algorithms aim to minimize bias and discrimination, which is particularly important in AI systems used in critical sectors such as health and justice.
Security: Introducing the obligation to assess risk and report incidents will increase the security of AI systems, which is crucial in the context of potential threats related to their mass implementation.
Summary
The AI Act is a significant step towards regulating the dynamically developing field of artificial intelligence. The new regulations will introduce the necessary framework for transparency, accountability and security, which can benefit both technology companies and end users. Companies that quickly adapt to new requirements can gain a competitive advantage, while those that neglect compliance may face serious consequences.
The European Union, through the AI Act, aims to establish global standards that can shape the future of AI technologies around the world.