EU Reaches Provisional Agreement on Landmark AI Act

Concerns Arise Over Potential Impact on AI Development in Europe

The European Union has reached a provisional agreement on the Artificial Intelligence Act, a landmark legislation aimed at regulating the rapid development of AI and setting a global standard in technology regulation.
The AI Act, which began its journey in early 2021, will take several more months to become law and two more years before its impact will be felt by the industry.
The Act will ban certain AI systems, such as predictive policing, and will impose transparency and reporting requirements on powerful AI systems. Penalties for non-compliance could reach up to 7% of a company's global turnover.
However, there are concerns that the strict regulations could drive AI developers out of Europe due to high compliance costs. French President Emmanuel Macron has expressed skepticism about the Act, suggesting it could hamper local technology development.
The full text of the Act is expected to be released in the coming weeks, providing more details on the scope of the law and how it will work.