EU AI Law: Balancing Ethics and Legal Development with Social Benefits and Economic Growth through Risk Categorization and Compliance Requirements

The European AI law aims to promote the ethical and legal development of artificial intelligence (AI) systems, while also ensuring social benefits, economic growth, innovation, and competitiveness. The law categorizes AI systems based on the level of risk they pose, ranging from minimum risk to unacceptable risk. Regulations address transparency, systemic risks, and requirements for conformity assessments.

All entities using AI systems within the EU must comply with the law, including high-risk systems that undergo conformity assessments to ensure data quality, traceability, transparency, human supervision, accuracy, cybersecurity, and robustness. The European Artificial Intelligence Office monitors compliance and authorizes AI applications. Penalties for violations can include fines of up to a percentage of the company’s annual turnover.

The AI Law will be fully applicable in 24 months, with gradual implementation starting from the publication date. Member States must eliminate banned systems within the first six months and governance obligations for general-purpose AI within a year. High-risk systems must meet requirements within two years. Victims of AI system infringements have the right to lodge complaints and claim compensation for damages.