What does this mean for businesses?

The Artificial Intelligence Act (AI Act) has entered into force in the European Union. It is the world’s first comprehensive law on artificial intelligence (AI), setting out rules for the use of artificial intelligence (AI).

The new rules, first presented in June 2023 and adopted in March this year, address the risks associated with the use of artificial intelligence in the context of the extensive regulatory and legal framework in force in the EU.

It will be used to assess AI systems for the risks they pose and will be subject to appropriate regulation to ensure AI technology meets fundamental rights, safety and ethical principles.

The bill will regulate both “AI systems” and “general purpose AI models.” The bill defines AI systems as “machine-based systems” designed to operate with “various levels of autonomy” and to infer and generate outputs from inputs.

Then, responsibilities will be set based on the risk level of specific AI technologies, and a set of guidelines and regulations will be established that must be followed before they are implemented.

Libero Raspa, Director of adesso UK, commented: “AI should be at the heart of driving innovation, so it is important that the new EU AI Act does not inhibit the development of groundbreaking technology solutions. Businesses should continue to invest in their development teams to continue to innovate and drive efficiencies across projects to gain a competitive advantage. Working with business partners and AI experts who have already proven AI concepts will instill confidence in AI adoption, answering many of the questions around new solutions and driving growth while minimising risk.”

In the UK, the new government is considering potential regulation of AI but faces the challenge of balancing safety guidelines and regulations with restrictions on innovation.

In July, King Charles III said the UK would “seek to legislate appropriately to impose requirements on those working to develop the most powerful AI models”, hinting at a potential AI Bill that could follow the EU’s AI Act.

Companies behind popular big language models like OpenAI and AI startups like Anthropic will feel the brunt of the upcoming regulations.

Sridhar Iyengar, Managing Director of Zoho Europe, commented: “The EU AI Act is a welcome roadmap for the future of AI, introducing safeguards to promote its safe and trusted development. This is especially true given the rapid pace at which it has evolved over the past 18 months. AI is becoming an increasingly central part of business operations, automating tasks such as data analysis, forecasting and customer service, and giving businesses a competitive advantage, but this cannot come at the expense of trust and security.

“Additional security measures for AI models and systems, especially those deemed high risk, are crucial to protecting businesses and their customers. Implementing robust business policies around AI use, along with guidance from the EU AI Act, will enable organizations to be more agile in responding to market trends and serving customers more effectively.”

“Our digital health survey found that 46% of respondents in the UK want more government regulation to protect businesses from the threat of AI, so we hope the UK will promote AI security measures and consider its own local safeguards.”