Europe has achieved a milestone in the world of AI by reaching a provisional deal on the European Union’s landmark rules governing AI usage.
According to Reuters, this development positions the EU as the first major global power to enact comprehensive laws in this rapidly advancing field. The agreement, which came after extensive negotiations and debates, signifies Europe’s commitment to shaping global standards in AI technology.
Under the new agreement, foundation AI models like ChatGPT and general-purpose AI systems (GPAI) must adhere to strict transparency obligations before entering the market. This includes the creation of technical documentation, compliance with EU copyright law, and the provision of detailed summaries on training content.
High-impact foundation models identified as having systemic risks are required to undergo model evaluations, risk assessments, adversarial testing, and report their systemic risks, cybersecurity measures, and energy efficiency to the European Commission.
The deal also stipulates conditions under which governments can use real-time biometric surveillance in public spaces. These conditions are limited to scenarios involving victims of certain crimes, prevention of immediate threats like terrorism, and searches for suspects of serious crimes. The agreement prohibits several practices, such as cognitive behavioural manipulation, untargeted scraping of facial images, social scoring, and biometric categorisation systems used for inferring personal beliefs or characteristics.
Importantly, consumers are empowered with the right to file complaints and demand clear explanations for AI-driven decisions. The legislation sets substantial fines for violations, ranging from 7.5 million euros ($8.1 million) or 1.5% of turnover to 35 million euros or 7% of global turnover.
European Commissioner Thierry Breton highlighted the significance of this development, stating, “Europe has positioned itself as a pioneer, understanding the importance of its role as a global standard setter. This is yes, I believe, a historical day.”
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global
