AI continues to garner much-deserved attention from business leaders for its transformational potential. However, all this enthusiasm has also brought a persistent concern: How will AI be regulated?

This ongoing uncertainty has been identified as the top barrier to AI adoption in recent KPMG surveys. With the passage of the European Union (EU) Parliament’s Artificial Intelligence Act (AI Act), many organisations will now start to gain clarity as they navigate the specifics of this first-of-its-kind legislation. The EU Parliament has already approved the Commission’s draft, and the law is expected to take effect in June or July 2024. Get an overview of everything you need to know here.

The idea behind the AI Act is that the higher the risk of an AI system, the more stringent are the associated requirements and obligations. AI regulation is intended to increase user confidence in AI within the EU and thereby create better conditions for innovation for manufacturers and users of AI applications. The EU AI Act casts a wide net, affecting any organisation that uses AI technology as part of products or services delivered in the EU.

Many aspects of the EU AI Act will be challenging for organisations to implement and address, particularly in terms of technical documentation for the testing, transparency, and explanation of AI applications. On top of this it is also essential that organisations crack the code on how to bridge the gap between the legal aspects and the practical aspects of AI use. We have listed eight concrete steps for your organisation to get started here.

Violations of the AI Act can result in fines of up to 30 million euros or up to six percent of total annual global sales for the previous fiscal year, making the sanctions comparable to those of the GDPR.

The AI Act’s formal approval starts the clock on a series of regulations that will roll out over two years. The new law includes a specific definition of AI, tiered risk levels, detailed consumer protections, and much more.

Frequently asked questions

The EU Artificial Intelligence Act (AI Act) is the first horizontal and standalone AI Framework. It is designed to regulate both the development and use of AI, aiming to ensure that AI systems are safe and respect fundamental rights.

The obligations of the EU AI Act affect manufacturers, suppliers, and distributors of AI systems, product manufacturers who incorporate AI systems into their products, and users of AI systems. Essentially, it impacts virtually every company involved with AI in the EU.

The AI Act is slated to be implemented incrementally over time. Instead of a single official start date, various regulations and controls will be introduced in phases. The law is expected to be officially enforced between late 2024 and the summer of 2027.

Meet our team

The AI Act requires an understanding of both new technologies and legal aspects. Therefore, we work cross-functionally, combining expertise from several of our service areas to ensure we provide you with the most value and prepare you for the legislation in the best possible way. We can, among other things, help you:

  • Understand AI tools, implement them and secure best practices.
  • Undertake a GAP analysis in terms of compliance and what you need to be aware of.
  • Take privacy and GDPR into consideration.
  • Prepare your organisation for the AI Act, including training your employees.