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On Sunday, the European Union granted regulators the authority to prohibit the use of AI systems considered to pose an “unacceptable risk” or harm. The EU’s AI Act, which came into force on August 1, sets out compliance deadlines, with the first being February 2. The Act categorizes AI applications into four risk levels, with unacceptable risk applications facing a complete ban. Companies found using prohibited AI applications may face fines of up to €35 million or 7% of their annual revenue. Tech giants are urged to comply with the AI Act, with some signing a voluntary pledge to apply its principles ahead of time. Some exemptions to the Act’s prohibitions may apply, with working groups focusing on guidelines and standards for compliance.
The AI Act allows law enforcement to use biometric systems in public places for targeted searches and threat prevention. Exceptions are made for systems inferring emotions in workplaces and schools with medical or safety justifications. The European Commission plans to release additional guidelines in 2025. Uncertainty remains regarding how other laws may interact with the AI Act. Organizations must consider how GDPR, NIS2, and DORA will intersect with the AI Act.
