EU Policymakers Agree Deal on ‘AI Act’ to Regulate the Industry

Regulating artificial intelligence (AI) is important for various reasons, as it continues to advance and become more integrated into different aspects of society.

Two key groups of lawmakers at the European Parliament on Tuesday ratified a provisional agreement on landmark artificial intelligence rules ahead of a vote by the legislative assembly in April that will pave the way for the world's first legislation on the technology.

Called the AI Act, the new rules aim to set the guardrails for a technology used in a broad swathe of industries, ranging from banking to cars to electronic products and airlines, as well as for security and police purposes.

The rules will also regulate foundation models or generative AI like the one built by Microsoft-backed OpenAI , which are AI systems trained on large sets of data, with the ability to learn from new data to perform various tasks.

Responding to the news, AI expert John Kirk, the Deputy CEO at ITG: “The rapid adoption of AI will bring seismic changes to the way businesses operate, impacting both jobs and the wider digital economy.

“Deployed correctly, AI will empower growth and transform the creative industries, but this must be done responsibly. Having a broad legal framework in place to ensure high standards of governance is a logical next step forward, to ensure that organisations make the most of AI, whilst adhering to the necessary regulatory rules.”

"AI Act takes a step forward: MEPs in @EP_Justice & @EP_SingleMarket have endorsed the provisional agreement on an Artificial Intelligence Act that ensures safety and complies with fundamental rights," one of the two European Parliament committees said on X, the social media site formerly known as Twitter.

The use of AI systems can impact individuals and communities in significant ways. Regulation helps ensure that AI is developed and used ethically, with consideration for fairness, accountability, and transparency.

AI often involves the processing of large amounts of data. Regulations can help protect individuals' privacy rights by defining how data should be collected, used, and stored, and by ensuring compliance with data protection laws.

Understanding how AI systems make decisions is crucial for accountability and trust. Regulations can require transparency in the development and deployment of AI algorithms, allowing users and affected parties to comprehend the decision-making processes.

Regulations provide a framework for assigning responsibility when AI systems cause harm. This helps establish accountability and ensures that developers, organizations, and users are aware of their responsibilities in the AI ecosystem.

AI applications should respect and protect fundamental human rights. Regulation can play a role in ensuring that AI is used in ways that uphold human dignity, autonomy, and freedom.

Regulating AI is essential to harness its benefits while mitigating potential risks and ensuring that it aligns with societal values, ethics, and human rights. It's a complex task that involves collaboration between governments, industry stakeholders, and the broader public to strike the right balance.