The strongest AI regulation is here: the EU passes the draft AI bill

Source: Phoenix Technology Network

BEIJING, June 14 (Reuters) - The European Parliament passed a draft law called the "AI Bill" on Wednesday local time, an important step towards passing this important law regulating artificial intelligence. The law could serve as a template for other countries as policymakers work to put in place "guardrails" for the fast-growing technology.

The draft vote is just one step in the EU's long process of passing the law. The final version of the bill is not expected to pass until later this year.

The "AI Act" adopts a "risk-based" approach to regulating AI, focusing on the application areas that are most harmful to humans, including AI systems that are used to operate critical infrastructure such as water or energy, and are used in the legal system, and when determining access to public services and government benefits. Developers of AI systems must conduct a risk assessment before putting the technology into daily use, similar to the drug approval process.

Generating AI will face new transparency requirements under the latest version of the AI Act passed Wednesday, including releasing summaries of the copyrighted material used to train the system, a proposal backed by the publishing industry but met with technical criticism. Objection from developers, due to technical impossibility. Makers of generative AI systems must also put safeguards in place to prevent them from generating illegal content.

At the same time, the "AI Act" will severely restrict the use of face recognition software, and at the same time require developers of AI systems such as ChatGPT chatbots to disclose more data used to create programs. The use of facial recognition is a major point of contention. The European Parliament voted to ban the use of real-time facial recognition, but questions remain over whether legal exemptions for national security and other law enforcement purposes should be allowed.

Under the current draft, companies could face fines of up to 6% of global revenue if they fail to comply with the AI Act.

The EU has gone further than the governments of the US and other major Western powers in regulating AI. The EU has been debating the topic for more than two years. The issue took on added urgency after the launch of ChatGPT last year, fueling concerns about AI's potential impact on jobs and society.

But tech leaders have also been trying to influence national debates on AI. Sam Altman, CEO of ChatGPT developer OpenAI, has met with at least 100 U.S. lawmakers and other global policymakers in South America, Europe, Africa and Asia in recent months, including European Commission President Ursula Ursula von der Leyen. Altman has called for regulation of AI, but he also said the company could struggle to comply with the EU's draft regulations and threatened to withdraw.

It's unclear how much AI regulation will play a role. AI appears to be advancing faster than European lawmakers can enact laws. For example, earlier versions of the AI Act did not give much attention to so-called generative AI systems such as ChatGPT.

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