EU AI Act - update bulletin

The first draft of the Artificial Intelligence Act (AIA) was issued in April 2021. It is currently going through the EU legislative process:

• In November 2021, the EU Council proposed amendments. Please see our update bulletin for more detail on those.
• In recent weeks, various committees of the EU Parliament have proposed amendments. This update bulletin summarises those amendments.

The EU Parliament is expected to finalise and propose its amendments in the Autumn, but that could be delayed.

EU’s draft AI Act: Recap

• The EU published its eagerly-awaited AIA, 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 applies ‘horizontally’ (ie across all sectors) and will have a wide territorial reach (eg it can apply to non-EU organisations that supply AI systems into the EU). It imposes significant financial penalties for non-compliance.
• The AIA adopts a risk-based approach. Some AI uses are prohibited; others (“high-risk AI systems” or “HRAIS”) are subject to onerous requirements; and many are not caught by the AIA at all. The focus is on the safety and fundamental rights of EU citizens.
• The majority of the AIA covers the HRAIS requirements. It also seeks to establish and regulate the functioning of various EU and national bodies that will monitor and enforce the AIA.
• The AIA is currently going through a detailed legislative process, during which it is likely to be amended. It is unlikely to become binding law until late 2023 or 2024. Even once it becomes binding, there will be a grace period of potentially 24-36 months before the main requirements will come into force.
• Nevertheless, organisations should start thinking now about the potential impact of the AIA on their business.