EU’s AI Act Compliance Deadlines Set, Ushering in New Era of AI Regulation

The EU’s landmark AI Act sets compliance deadlines for tech companies, beginning the countdown to a new era of AI regulation. The sweeping set of rules aims to protect citizens’ rights and ensure transparency in the development and use of AI systems.

Key compliance deadlines: The AI Act will come into effect on August 1st, 2024, with several compliance deadlines tied to this date:

• By February 2nd, 2025, companies must comply with bans on AI applications that pose an “unacceptable risk,” such as biometric categorization, emotion recognition in sensitive settings, social scoring systems, and certain predictive policing tools.
• By May 2nd, 2025, developers will have access to codes of practice outlining legal compliance requirements.
• By August 2025, general-purpose AI systems like chatbots must comply with copyright law and transparency requirements.
• By August 2026, the AI Act’s rules will generally apply to companies operating in the EU, with some “high risk” AI systems having until August 2027 to comply with additional requirements.

Penalties for non-compliance: Failure to adhere to the AI Act will result in significant fines for offending companies:

• Violations of banned systems carry the highest fine: €35 million (about $38 million), or 7 percent of global annual revenue.
• Other violations may result in fines based on a percentage of total revenue or a set amount.

Implications for the AI industry: The AI Act’s implementation marks a significant shift in the regulatory landscape for AI, setting a precedent for other regions to follow:

• Tech companies will need to carefully assess their AI systems and make necessary changes to ensure compliance with the new rules, potentially leading to increased costs and slower innovation.
• The focus on transparency and accountability may lead to greater public trust in AI systems, as users will have more information about how these tools are developed and deployed.
• The ban on certain high-risk applications could spur the development of more ethical and responsible AI solutions that prioritize citizens’ rights and well-being.

As the AI Act’s compliance deadlines approach, the technology industry will need to navigate this new regulatory landscape carefully, balancing innovation with the need to protect citizens’ rights and maintain public trust in AI systems. The coming years will be crucial in shaping the future of AI development and deployment in the EU and beyond.