Find out how the EU AI Act impacts your business by using our EU AI Act risk calculator tool. Please use this calculator for each AI system in your company.
The EU AI Act represents a pivotal development in artificial intelligence regulation, establishing comprehensive oversight of AI technologies. As the first legislation of its kind globally, it aims to ensure the safe, transparent, and ethical deployment of AI, with far-reaching implications beyond the European Union.
Published in the Official Journal of the EU on July 12, 2024, this Act culminates a legislative journey that began in April 2021 when it was proposed by the European Commission. , the EU AI Act introduces a phased enforcement schedule, .
Companies should closely follow the EU AI Act, as it has the potential to become the global standard for ethical AI development and use. Similar to how GDPR transformed data privacy regulations, the AI Act sets out a framework for governing high-risk AI systems across various sectors, from healthcare and law enforcement to online content moderation. This focus on ethical AI is already shaping AI policy discussions worldwide.
Non-compliance with the Act can result in hefty fines, reaching up to €35 million or 7% of a company's global turnover, whichever is higher. Therefore, compliance with the Act is not just a matter of ethics, but also a strategic necessity for companies operating in the EU or with global reach.
AI systems under the Act are assigned to one of three distinct risk categories:
AI systems that pose an unacceptable risk to safety and rights are strictly prohibited. These include technologies that compromise privacy, human dignity, or autonomy. Ensuring no deployment of such high-risk AI. Learn more here.
AI systems identified as high-risk must adhere to stringent design and operational standards. These systems undergo rigorous checks to guarantee compliance with safety and ethical standards, ensuring they are secure and trustworthy before deployment.
AI systems with limited risk require transparency and accountability measures. These systems must clearly inform users about their operation, especially when interacting with humans or processing sensitive data, to maintain trust and compliance.
AI systems with minimal risk face no mandatory regulatory constraints, promoting innovation and rapid development. Such systems can be deployed freely, fostering technological advancement with lower oversight.
There are also additional and more specific obligations for the providers of AI systems with certain transparency risk and general-purpose AI models.
Partnering with Holistic AI ensures seamless integration and management of AI across your organization, enabling . Our end to end AI Governance platform empowers decision-makers with centralized control and detailed analytics, significantly reducing risks and enhancing operational transparency.
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