AI Regulations: EU reaches historic agreement on landmark legislation to regulate Artificial Intelligence

On December 8, Europe reached a provisional agreement on landmark European Union rules governing the use of artificial intelligence (AI) including governments' use of AI in biometric surveillance and regulating AI systems such as ChatGPT, Reuters reported.

The Artificial Intelligence Act is the world's first comprehensive regulations for AI, setting the stage for legal supervision of AI technologies deployed in platforms like ChatGPT, which have raised concerns about potential threats to humanity.

The landmark political agreement makes the EU the first major world power to enact laws governing AI. Trailing the EU in AI regulations are countries such as China, the UK and the US, and major G7 democracies that are also formulating their own AI regulations.

Last week's historic accord between EU countries and European Parliament members came after two days of intense negotiations and debates on contentious issues like genAI and the deployment of facial recognition surveillance by law enforcement. In the coming days, both sides are set to work out the details, shaping the final legislation.

"Europe has positioned itself as a pioneer, understanding the importance of its role as a global standard setter. This is yes, I believe, a historical day," European Commissioner Thierry Breton told the press.

As per reports, the preliminary political accord requires foundation models and general purpose AI systems (GPAI) to comply with transparency obligations before they are put on the market. The law's complete implementation is not expected before 2025, with provisions for substantial financial penalties for violations, reaching up to €35 million ($38 million) or 7 percent of a company's global turnover.