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EU Artificial intelligence Act

On 21 April 2021, the European Commission released a Proposal for a Regulation Laying Down Harmonized Rules on Artificial Intelligence (Artificial Intelligence Act) and amending certain Union legislative Acts. In November 2023, the EU Council and European Parliament agreed on a compromise text. On 13 March 2024, the European Parliament voted on the compromise text.

The Regulation entered into force on 12 July 2024.
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The Regulation aims to establish a comprehensive framework for the development and deployment of artificial intelligence (AI) within EU. It addresses various aspects of AI, including ethical considerations, transparency, accountability, and legal implications. The regulation recognizes the potential benefits of AI while acknowledging the need to ensure its safe and responsible use.

It introduces requirements for high-risk AI systems, defined as systems that pose significant risks to health, safety, or fundamental rights. These requirements include mandatory conformity assessments, data and record-keeping obligations, and the appointment of a responsible person within the organization. The proposed regulation also emphasizes the importance of human oversight and the need for clear and understandable information for users.
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Additionally, the EU Regulation establishes a European Artificial Intelligence Board and a European Artificial Intelligence Committee to facilitate cooperation and coordination among member states. It is highlighted the role of national competent authorities in enforcing the Regulation and imposes sanctions for non-compliance.

The Regulation aims to strike a balance between promoting innovation and protecting individuals' rights and safety. It acknowledges the importance of fostering a trustworthy and human-centric approach to AI. The Regulation also emphasizes the need for international cooperation and harmonization of AI regulations to ensure a global ethical and legal framework for AI development.

The EU Regulation seeks to address the challenges and risks associated with AI while harnessing its potential for societal and economic benefits. It sets out a comprehensive framework to govern the development, deployment, and use of AI systems within the EU, with a particular focus on high-risk applications.
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eEuropa Blog - Read our articles on this subject

The Objectives of the EU Artificial Intelligence Act

  • ensure that AI systems placed on the Union market and used are safe and respect existing law on fundamental rights and Union values
  • ensure legal certainty to facilitate investment and innovation in AI
  • enhance governance and effective enforcement of existing law on fundamental rights and safety requirements applicable to AI systems
  • facilitate the development of a single market for lawful, safe and trustworthy AI applications and prevent market fragmentation.

Classification of A.I. level of risk

 The drat of the Commission proposes to adopt different set of rules tailored on a risk-based approach with four levels of risks:
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  • Unacceptable risk AI.  Harmful uses of AI that contravene EU values (such as social scoring by governments) will be banned because of the unacceptable risk they create; 
  • High-risk AI. A number of AI systems (listed in an Annex) that are creating adverse impact on people's safety or their fundamental rights are considered to be high-risk. In order to ensure trust and consistent high level of protection of safety and fundamental rights, a range of mandatory requirements (including a conformity assessment) would apply to all high-risks systems; 
  • Limited risk AI. Some AI systems will be subject to a limited set of obligations (e.g. transparency); 
  • Minimal risk AI. All other AI systems can be developed and used in the EU without additional legal obligations than existing legislation.

The EU Regulation: Critical points

1. Definition and Scope

The Regulation provides a broad definition of AI systems and categorizes certain systems as "high-risk". However, the scope and criteria for determining which AI systems fall under this category may be subject to interpretation and require further clarification. Clearer guidelines and thresholds could help in ensuring consistent application and effective regulation.
  • Article 3: Definitions
  • Article 5: Scope


2. Proportionality and Impact on Innovation
  
While the Regulation aims to strike a balance between regulation and innovation, some concerns were expressed about the potential burden it may impose on businesses, particularly small and medium-sized enterprises. The requirements and compliance obligations for high-risk AI systems might disproportionately impact smaller organizations, hindering their ability to compete and innovate in the AI market.
  • Article 44: Obligations for high-risk AI systems
  • Article 48: Conformity assessment procedures
  • Article 51: Conformity assessment bodies


3. Enforcement and Implementation Challenges

The Regulation places significant responsibility on national competent authorities for enforcement and supervision. Ensuring consistent implementation and enforcement across EU member states may pose challenges, particularly considering the varying levels of resources and expertise available to different authorities.
Harmonization and cooperation mechanisms need to be well-established to address these potential issues.
  • Article 61: National competent authorities
  • Article 62: Cooperation mechanism
  • Article 66: Powers of national competent authorities



4. Impact on International Competitiveness
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The Regulation may impact the EU's competitiveness in the global AI market. Stricter regulations within the EU, if not matched by other regions, could potentially result in the relocation of AI development and deployment activities outside the EU. Balancing regulation with strategies to promote innovation and maintain competitiveness on a global scale will be essential.
  • Article 1: Objectives and general principles
  • Article 2: Definitions
  • Article 54: Cooperation with third countries
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5. Technological Neutrality
 
While the Regulation acknowledges the need for a risk-based approach, there is a possibility that it could inadvertently favor or hinder specific AI technologies or approaches. Striking the right balance and ensuring technological neutrality will be crucial to avoid stifling certain AI developments or favoring specific solutions over others.
  •  Article 4: Risk-based approach
  •  Article 44: Obligations for high-risk AI systems
  •  Article 52: Transparency obligations


Which EU Funds Finance AI

  • HORIZON EUROPE
  • ​DIGITAL EUROPE PROGRAMME
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Cluster 4: Digital, Industry and Space
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The financing on Artificial Intelligence is inscribed in Cluster 4 of Horizon Europe Framework programme 2021-2027.
​​The overarching vision behind the investments under Cluster 4 is that of Europe shaping competitive and trusted technologies for a European industry with global leadership in key areas, enabling production and consumption to respect the boundaries of our planet, and maximising the benefits for all parts of society in the variety of social, economic and territorial contexts in Europe.
This contributes to a competitive, digital, low-carbon and circular industry, ensures sustainable supply of raw materials, develops advanced materials and provides the basis for advances and innovation in  global challenges to society.

Digital Europe programme
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The Digital Europe Programme (DIGITAL) is a EU funding programme focused on bringing digital technology to businesses, citizens and public administrations.

The Digital Europe Programme, with a budget of €7.5 billion (2021-2027), and €1.3 billion for 2023-2024, aims to address challenges in supercomputing, AI, cybersecurity, digital skills, and the adoption of digital technologies. The program aims to accelerate economic recovery and drive digital transformation across Europe, with a particular focus on supporting small and medium-sized enterprises. The funding will complement other EU programs, including the Horizon Europe program for research and innovation, the Connecting Europe Facility for digital infrastructure, and the Recovery and Resilience Facility. The Digital Europe Programme is part of the Multiannual Financial Framework 2021-2027 and will work in conjunction with other initiatives to support the development of a digital Europe.