Will EU regulations help or hinder the introduction of AI to businesses?

With the proposed EU AI Act expected to be passed into law, AI experts have mixed views on how this will affect businesses. The proposed legislation will create three risk categories for AI applications used in the EU, with a ban on those deemed to create an unacceptable risk, greater legal requirements for high-risk applications, and all other applications remaining largely unregulated. 

The act could set a global standard for AI regulation, with Brazil’s congress passing a bill to create a legal framework for AI. This bill needs to be passed by the country’s senate to become law.  

“My frustration lies in the lack of recognition of the need to adapt economic structures to a world increasingly rooted in AI,” says Jamie Bykov-Brett, a digital innovation specialist. “Make no mistake, the inception of AI is a milestone as significant as humanity’s first command over fire. While this regulation is a stride in the right direction, it lacks the rigour and foresight befitting something that should have been progressively developed over the past decade.”

“Finding the right balance is crucial – what we need is a nuanced approach, one that encourages transparency and ethical practices, supports research and innovation, and fosters a diverse, inclusive AI ecosystem that benefits all,” Bykov-Brett  “As we watch this EU act unfold, it must remain vigilant, proactive, and prepared to pivot in the face of unforeseen challenges.”

Rebecca Wettemann from independent industry analyst firm, Valoir, is concerned that the proposed AI act is “pretty limiting in terms of what it allows AI to be used for, banning some outright, while requiring others labelled as potentially high risk, such as scanning CVs to rank job applicants, to be subject to specific legal requirements.” 

“As AI evolves, it will need to evolve as well, so organisations and individuals can take advantage of the benefits of AI as it becomes more broadly applicable while still being protected,” says Wettemann.

For some companies, the vigilance that the new EU act will require is already part of the process when it comes to selecting AI applications, as Nairah Thaha, immersive technology engineer at Monstarlab explains: “As we do not develop our own AI solutions internally, we are meticulous in choosing trusted vendors who we can count on. We also engage in transparent exchanges with our clients, depending on their sector, in order to make sure they are educated and aware of regulations and security requirements.”

Courtesy Georgia Lewis

Image credit: Angel Bena/Pexels

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