On August 1, 2024, the EU AI Act officially came into force, marking a decisive moment for the regulation of artificial intelligence (AI) in Europe. This regulation is the first of its kind to be issued by a major supervisory authority to comprehensively regulate the use of AI technologies. But what exactly does this mean for companies?
What is the EU AI Act?
The EU AI Act aims to create a harmonized single market for AI in the EU that promotes innovation while minimizing the risks associated with AI use. Clear rules for the development and use of AI systems are intended to ensure that these technologies are used safely and ethically. The Act regulates how companies are allowed to develop, use and apply AI, providing a framework that both stimulates investment and prioritizes user protection.
How does the EU AI Act work?
The EU AI Act classifies AI applications into three different risk categories:
- Prohibited applications: AI systems that are classified as unacceptably risky are prohibited. These include, for example, government social assessment systems or real-time face recognition in public spaces. These applications pose a significant risk to the fundamental rights and freedoms of citizens and are therefore completely prohibited.
- High-risk applications: Applications used in critical areas such as CV analysis or AI-supported credit scoring are subject to strict legal requirements. Companies that develop or use such systems must meet extensive compliance requirements, including regular audits and transparency reports.
- Low-risk applications: These applications, such as chatbots for customer service or autocorrect systems, are largely unregulated and offer companies greater freedom. Nevertheless, basic ethical standards are expected to be observed here too.
What does that mean for your company?
For companies, the EU AI Act means that they need to take a close look at their AI applications and processes to ensure that they comply with the new legal requirements. Adjustments are unavoidable, especially in areas that are classified as high-risk. Companies that violate the requirements risk severe penalties of up to 30 million euros or 7% of their global annual turnover.
Seize the opportunities with IBM watsonx!
Compliance with the EU AI Act can be a challenge – but it also opens up new opportunities. With IBM watsonx, companies have a powerful tool at hand that not only helps them to meet the requirements of the regulation, but also to strengthen their AI strategy. IBM watsonx enables you to manage your AI projects transparently and responsibly, which not only ensures compliance, but also strengthens the trust of your customers.
Want to find out more?
If you want to dive deeper into the topic and learn how IBM watsonx can prepare your company for the requirements of the EU AI Act, contact Blue Bee Intelligence. Start your journey into a safe and innovative AI future – with BI2run and Blue Bee Intelligence by your side!
