On 1 August 2024, the EU Artificial Intelligence Act (The EU AI Act, or the “Act”) entered into force.
Companies, which use artificial intelligence (AI) and intend to continue their operations in the European market must prepare for the fulfillment of new obligations.
The purpose of this Act is to regulate the market of AI systems, in particular those that generate high risk.
The Act applies to all developers of AI systems and models, who are present in the EU market, irrespective of whether they are established within the EU or in a third country.
The updated EU legislation introduces a risk-based classification, differentiating between uses of AI that create:
In addition, the Act establishes the definition of general-purpose AI systems (General purpose AI or GPAI).
A GPAI system means an AI system which is based on a general-purpose AI model capable of competently performing a wide range of distinct tasks regardless of the way the model is placed on the market and that can be integrated into a variety of downstream systems or applications.
Developers of GPAI models and GPAI-based systems must—in addition to complying with copyright laws—make publicly available the technical documentation, instructions for use, a summary of the content used for the training the model.
With respect to some models, developers must conduct evaluations and testing, keep track of and report any serious incidents, and ensure an adequate level of cybersecurity protection.
Limited-risk systems are mainly subject to transparency obligations. Developers are required to make humans aware that they communicate or interact with an AI system, and to label all AI-generated content.
Developers of high-risk AI systems must meet are required to:
Developers of GPAI models are required to:
After entry into force, the Act shall apply by the following deadlines:
By then, developers of AI systems and models, which operate in or intend to enter the EU market must ensure they have fulfilled all the above requirements.
We continue to monitor how advanced technologies regulation is evolving. Our team will continue to share useful information with you.
Deloitte experts’ comments presented in this review are for informational purposes only and should not be relied upon by taxpayers without a detailed expert analysis of the specific matter.
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