The European Union’s AI Act sets a global precedent with the first comprehensive AI law, aiming to establish the foundation for safe AI applications and uphold fundamental democratic rights. The act came into force on Thursday, 1st August 2024 with a subset of rules to promote trust in AI technologies. The Act categorizes AI systems based on risk and sets out specific requirements and obligations for their development, deployment, and use across the European Union’s single market.
With the EU’s risk-based approach to tune AI compliance, the rule is stricter where the risk of harm is higher. AI systems are graded as “limited risk” and required to be transparent only, while biometric identification systems and medical devices fall into the “high-risk” category and adhere to certain preconditions and obligations to operate in the EU market. The obligations imposed by the act include risk assessment and bias mitigation measures for high-quality data sets to train AI models. Whereas, AI systems used for social scoring and cognitive behavioural manipulation, and depend on biometric data for predictive policing are banned by the act.
Companies operating businesses or fostering clientele in the European Union are compelled the adhere to the compliance. The legal framework applies to private and public actors inside and outside the European Union if the AI system is launched in the Union market, or has an impact on citizens located within the geographics of the EU.
Indian companies serving EU clientele are burdened with various compliance already, now they have to adhere to the additional risk assessment criteria in the present AI models as per EU’s AI Act criteria. Also, it imposes a compliance cost in addition to prerequisite ones on the Indian IT sector, especially in medium-sized sectors. As far as the regulatory standard is concerned, India might be considering aligning some of the AI policies in tune with EU standards to ensure smooth trade and collaboration with the potential market of more than 500 million consumers.
India is well-positioned to fortify its objectives of Make for World and Make in India initiatives. By fostering research projects, joint initiatives, and standard harmonization between the two regions, India can enhance opportunities for R&D, and the development and deployment of responsible AI. The collaboration could enable data sharing and collaborative efforts in AI research and development.
With the EU implementing the AI Act, Indian lawmakers will have the opportunity to evaluate the advantages and disadvantages experienced by EU member countries and develop a more impactful AI Act for India.
According to the European Commission, most of the AI Act's rules will take effect on August 2, 2026. However, prohibitions on AI systems considered to pose an unacceptable risk will be enforced after six months, and regulations for General-Purpose AI models will come into effect after 12 months.
𝐒𝐭𝐚𝐲 𝐢𝐧𝐟𝐨𝐫𝐦𝐞𝐝 𝐰𝐢𝐭𝐡 𝐨𝐮𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬 𝐛𝐲 𝐣𝐨𝐢𝐧𝐢𝐧𝐠 𝐭𝐡𝐞 WhatsApp Channel now! 👈📲
𝑭𝒐𝒍𝒍𝒐𝒘 𝑶𝒖𝒓 𝑺𝒐𝒄𝒊𝒂𝒍 𝑴𝒆𝒅𝒊𝒂 𝑷𝒂𝒈𝒆𝐬 👉 Facebook, LinkedIn, Twitter, Instagram
