Finding Your Way Through AI’s Regulatory Jungle

AI companies must find immediate solutions to ensure compliance with emerging regulations.

Governments in Europe are scrambling to regulate AI, following heightened concern from the general public about its disruptive potential, yet must find ways to do so without impeding innovation. The EU’s AI Act lays out a risk framework for new AI use cases, creating the following risk categories: unacceptable risk, high risk, limited risk and little or no risk. The EU will prohibit AI systems that pose unacceptable degrees of risk. “High-risk” use cases are those that could cause emotional physical or financial harm to users (for example, influencing a user’s ability to access credit, health care or employment). The AI Act will require transparency, disclosure, certification and post-deployment documentation for any high-risk use cases. Companies that fail to adhere to the new requirements face fines of up to 6% of their global annual revenue.

After negotiations between the EU Commission and the European Parliament and council member...