What is EU AI Act?
TL;DR
The world's first comprehensive AI regulation law enacted by the EU. Takes a risk-based regulatory approach.
EU AI Act: Definition & Explanation
The EU AI Act is the world's first comprehensive AI regulation law, passed by the European Union in 2024. It classifies AI systems into four risk levels — 'unacceptable risk,' 'high risk,' 'limited risk,' and 'minimal risk' — and imposes obligations proportional to risk level. 'Unacceptable risk' AI like social scoring and indiscriminate facial recognition is banned, while 'high risk' AI in areas like hiring, lending, and healthcare requires conformity assessments, transparency, and human oversight. Providers of general-purpose AI models (GPT-4, Claude, etc.) also have transparency and risk management obligations. The law applies to all companies offering AI within the EU, potentially affecting businesses worldwide.