European Union: Application of Artificial Intelligence Act begins

The European Union’s Artificial Intelligence Act, which began to apply on February 2, is the first comprehensive legal framework for A.I. to be drawn up worldwide. The legislation aims to foster trustworthy A.I. while ensuring public safety, protecting fundamental rights, and strengthening Europe's position as a global leader in A.I. development.

Framework for A.I. regulation and supervision

Formally known as Regulation (EU) 2024/1689, the A.I. Act introduces a structured, risk-based approach to governance of artificial intelligence. A.I. systems are classified according to four risk levels: unacceptable risk, high risk, transparency risk, and minimal or no risk. The legislation bans outright A.I. applications considered to pose an unacceptable risk, including manipulative A.I., social scoring, biometric categorisation based on sensitive characteristics, and real-time remote biometric identification in public spaces for law enforcement purposes. High-risk A.I. systems, such as those used in critical infrastructure, education, healthcare and law enforcement, must meet strict requirements, including risk assessment, transparency measures and human oversight to prevent harmful outcomes.

Ensuring safety and encouraging innovation

The legislation requires A.I. systems deployed in the EU to adhere to stringent safety and accountability standards. Providers and deployers of high-risk A.I. systems must implement risk mitigation strategies, maintain robust documentation, and ensure human oversight. Transparency rules require A.I.-generated content, including both deepfakes and public information, to be clearly labelled. The legislation also introduces the A.I. Pact, a voluntary initiative designed to promote early compliance with key obligations. It also seeks to facilitate innovation through regulatory sandbox schemes and the A.I. Innovation Package, which authorises A.I. developers to test their technologies in a controlled environment while maintaining compliance.

“A.I. should serve as a tool for people, with the ultimate aim of increasing human wellbeing”

Impact on businesses and society

The A.I. Act establishes clear legal obligations for A.I. providers and deployers in order to win the trust of consumers and prevent regulatory fragmentation. General-purpose A.I. models, which form the basis for many A.I. systems, must meet transparency rules and copyright compliance obligations, while providers of models entailing systemic risk must assess and mitigate these risks. “A.I. should serve as a tool for people, with the ultimate aim of increasing human wellbeing,” the legislation states. The European A.I. Office, along with national authorities, will oversee compliance with and enforcement of the legislation, which takes effect in stages, with prohibitions and A.I. literacy obligations applying from February 2, 2025 and full implementation from August 2026. By balancing technological progress with ethical responsibility, the A.I. Act seeks to position the EU as a leader in safe and trustworthy A.I. development.