DataGuard UK Blog

EU AI Act: Parliament passes landmark legislation

Written by Ander Lozano Zurita | March, 15

In this blog post, we'll cover:

Brief overview of the EU AI Act 

The EU AI Act, agreed in negotiations with member states in December 2023, received MEP’s endorsement on March 13, 2024 with 523 votes in favour, 46 against and 49 abstentions.  

Overall, the law aims to balance the need for innovation with the need to safeguard individual rights and values. Its implementation and enforcement will shape the future landscape of AI development and usage in the EU and is likely to influence global regulatory frameworks, too.

 

What does the EU AI Act cover?

The AI Act will have the power to ban certain AI applications that legislators consider likely to threaten people’s rights, including social scoring and predictive policing.

It will also categorise AI systems into low, high and critical risk categories. The higher the risk, the higher the need for oversight. The regulation also emphasises the need for transparency – particularly regarding compliance with EU copyright law and model evaluation.  

It has teeth, too. Violations can result in hefty fines of up to €35 million or 7% of annual turnover. 

Learn more about the details and history of the EU AI Act.

 

What does the EU AI Act mean for my business? 

If your organisation uses high-risk AI system, you can expect the need to prepare for full risk assessments, additional transparency reports and more human oversight. And it means you’ll need to think about technical documentation that outlines how you use AI in your business.

 

Related: Discover what the legislation could mean for privacy and compliance in your business— Download your complete guide to the EU AI Act.

 

Timeline and next steps

The EU AI Act will now go through a final legal check and is expected to be finally adopted before the end of the legislature. Upon formal endorsement by the Council, the EU AI Act will come into effect 20 days after its publication in the official Journal, and it will be fully applicabile 24 months after that. 

Exceptions to the general application include:

  • Bans on prohibited practices will apply six months after the entry into force date  
  • Codes of practice will apply nine months after entry into force
  • General-purpose AI rules including governance will apply 12 months after entry into force
  • Obligations for high-risk systems will apply 36 months after entry into force  

 

Stay informed and prepare your company for compliance

The EU AI Act is nearly here! By proactively preparing your systems and procedures for compliance, you're not just avoiding legal hurdles and hefty fines – you're becoming a part of a responsible AI movement that upholds fundamental rights and champions innovation. 

Reach out to us if you could use advice on ensuring compliance in your organisation.