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Five things you need to know about the EU’s new AI Act

After months of negotiations, EU lawmakers have reached a deal on the groundbreaking AI Act, introducing strict rules on transparency and ethics for tech companies, creating enforcement mechanisms, and setting up fines for noncompliance. The Act covers regulations on powerful AI models, governance mechanisms, fines for noncompliance, and bans on certain AI uses.

 Five things you need to know about the EU’s new AI Act

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The EU’s New AI Act: What Middle Managers Need to Know

1. Transparency and Ethics

The AI Act introduces legally binding rules requiring tech companies to notify people when they are interacting with AI systems, label deepfakes and AI-generated content, and conduct impact assessments on how AI systems affect fundamental rights.

2. Regulation and Innovation

The AI Act requires better documentation and compliance with EU copyright law for powerful AI models, but companies still have some flexibility in assessing whether they fall under stricter rules.

3. Enforcement and Governance

The AI Act sets up a new European AI Office to enforce binding rules on AI, with steep fines for noncompliance. It also establishes a scientific panel of experts to offer guidance on AI risks and governance.

4. Banned AI Uses

The AI Act bans certain AI uses such as biometric categorization systems, untargeted scraping of facial images, emotion recognition at work or in schools, and predictive policing. However, it does not apply to AI systems developed exclusively for military and defense uses.

5. Implementation Timeline

Once in force, tech companies have two years to implement the rules, with bans on certain AI uses applying after six months. Companies developing foundation models must comply within one year.

Practical AI Solutions for Middle Managers

Identify Automation Opportunities, Define KPIs, Select an AI Solution, Implement Gradually. For AI KPI management advice, connect with us at hello@itinai.com. Explore the AI Sales Bot from itinai.com/aisalesbot designed to automate customer engagement 24/7 and manage interactions across all customer journey stages.

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Vladimir Dyachkov, Ph.D
Editor-in-Chief itinai.com

I believe that AI is only as powerful as the human insight guiding it.

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