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The European Union (EU) has released draft rules to implement the Artificial Intelligence (AI) Act to regulate the application of AI.

What is the EU's draft Code of Practice for AI companies?

The EU's draft Code of Practice provides guidelines for companies developing general-purpose AI models to ensure compliance with the EU's AI Act.

It covers core areas such as transparency, copyright compliance, risk assessment, and technical/governance risk mitigation.

The document's goal is to ensure that AI companies provide detailed information about their models, conduct risk assessments, and establish safety frameworks to manage systemic risks from AI technologies.

Key obligations for AI companies under the draft Code

To use web crawlers that follow the Robot Exclusion Protocol (robots.txt).

To provide detailed information on the data used for AI model training, testing, and validation, as well as the test results.

To create a Safety and Security Framework (SSF) to assess and mitigate systemic risks at various stages—pre-training, during training, and during deployment. The SSF should be updated to reflect systemic risks.

To bring outside experts to conduct independent testing and risk assessments on AI models.

Penalties for Noncompliance

Companies that fail to comply with the EU's AI Act may face fines of up to €35 million or 7% of their global annual profits, whichever is greater.

European Union’s AI Act

The European Union's AI Act is the first comprehensive legal framework aimed at regulating artificial intelligence.

It categorizes AI systems into four risk categories—prohibited, high-risk, limited-risk, and minimal-risk—with varying regulatory requirements.

The Act seeks to establish global standards for AI governance and is expected to influence AI legislation in other countries.

Challenges

The challenges include concerns about bureaucratic burdens on small businesses and startups, which may restrict innovation.

The comprehensive categorization of AI systems, combined with strict regulations for high-risk systems can result in administrative stress.

The Act may struggle to keep up with rapidly evolving AI technologies, potentially impeding their growth.

How is India addressing AI regulation?

The Ministry of Electronics and Information Technology (MeitY) is developing an artificial intelligence framework.

The government requires platforms to obtain permission before releasing "under-testing/unreliable" AI tools like Large Language Models (LLMs).

India aims to develop a balance between protecting citizens' rights and promoting innovation in AI development.

Way Forward

The European Union (EU) AI Act is an important development in AI regulation, it established the standard for other countries to follow. Despite potential adoption challenges, developing responsible AI frameworks is essential for ensuring ethical and productive use of AI technology around the world.

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EUROPEAN UNION’S ARTIFICIAL INTELLIGENCE ACT

EU’S AI LAW

Source:

Indian Express