EU draft AI regulation: a practical guide

This quick guide addresses

• Context to the draft regulation
• What you should do in light of this
• Key points of the draft regulation (including hyperlinks to the relevant provisions)
• How we can help

Context

• The EU has now published its eagerly-awaited draft regulation on AI, which President von der Leyen promised shortly after her appointment.
• This is a significant piece of legislation which will apply to providers, users, importers and distributors of AI systems. It will have a wide territorial reach (eg it will apply to non-EU organisations that supply AI systems into the EU) and there may be significant financial penalties for non-compliance.
• The draft regulation adopts a risk-based approach. Some AI uses are prohibited; others (high-risk AI systems or HRAIS) subject to onerous requirements; and many are not caught by the draft regulation at all. The focus is on the safety and fundamental rights of EU citizens at its core.
• The majority of the draft regulation covers the HRAIS requirements. It also seeks to establish and regulate the functioning of various EU and national bodies that will oversee the regulation.
• The draft regulation will now go through a detailed legislative process, during which it is likely to be amended. It is unlikely to become binding law for 12-24 months. Even once it becomes binding, there will be a grace period of potentially 24 months before the main requirements will come into force.
• Nevertheless, organisations should start thinking now about the potential impact on their business.