EU Approves the Artificial Intelligence Act

On Wednesday, European lawmakers passed the EU AI Act, marking a significant milestone in regulating high-impact AI models and systems. The legislation aims to create safeguards for rapidly advancing technology and will be formally approved by EU nations in May 2023.

Implications for UK Technology Businesses

While the UK is no longer part of the EU, the AI Act will impact British businesses operating in the EU. Compliance with the regulations is crucial for companies looking to scale globally or operate within the EU market.

‘Brussels Effect’

The approval of the AI Act is expected to have a global impact on industries worldwide, as it kickstarts legislative changes across international borders. UK tech businesses with global ambitions will need to adhere to the compliance requirements set forth by the EU.

Race to Comply

Businesses using AI, particularly those involved in higher-risk activities, will now need to focus on becoming compliant with the new regulations. The transition period varies depending on the type of AI system being developed or deployed.

Opportunity for Innovation

Some see the EU AI Act as an opportunity for the UK to forge its own path post-Brexit. By enabling industry bodies to regulate AI use rather than technology itself, the UK may attract high-growth businesses seeking a more favorable regulatory environment.