The Azerbaijan State News Agency

WORLD

The World’s first major AI Law has arrived. What the EU’s rules mean for big tech

The World’s first major AI Law has arrived. What the EU’s rules mean for big tech

Baku, March 14, AZERTAC

The world’s first comprehensive legal framework for artificial intelligence has been finalized. European Union lawmakers on Wednesday approved the bloc’s AI Act, which is likely to shape the approach of U.S. technology companies, according to Barron’s.

As whole, the legislation aims to protect European citizens’ rights from certain applications of AI and bring stricter oversight to the technology overall.

Companies like Alphabet GOOGL 0.93%, Amazon.com, AMZN 0.66%, Microsoft MSFT -0.04% and Meta Platforms META -0.84% will be affected by the Act, as the EU’s rules apply to anyone providing AI within the bloc. Beyond that, the so-called Brussels Effect often causes the EU’s rules to become the effective international standard.

The potential penalties contained in the AI Act are considerable, including 7% of a company’s global annual turnover in the previous financial year for violations involving banned AI applications.

The law passed the European Parliament with 523 votes in favor, 46 against, and 49 abstentions. The overwhelming majority should ensure it will be signed off on by the EU’s member states.

When Barron’s previewed the final negotiations over the AI Act back in December, there were still some key sticking points.

The main issue was whether the Act’s risk-based approach would apply to foundation models—the most powerful AI systems that can be adapted to different tasks, such as OpenAI’s GPT-4.

Some member states were calling instead for the regulation to apply only to specific AI use cases—such as a chatbot or image generator—while foundation models would be self-regulated via codes of conduct. The intent was to avoid putting burdensome regulation on domestic European AI companies, such as France’s Mistral and Germany’s Aleph Alpha.

The result was a compromise. Under the framework, foundation models generally only face transparency obligations, meaning they must disclose material—including the content used for training the AI—and their compliance with copyright law.

However, the act introduces a stricter regime for “high impact” foundation models—those trained with the largest amount of computing power—including performing model evaluations, assessing and mitigating systemic risks, and reporting on incidents.

Those requirements will probably apply to future versions of Microsoft-backed OpenAI’s GPT, along with models from Meta, Alphabet’s Google, and U.S. start-up Anthropic (which is backed by Google and Amazon.com).

One important factor was the decision on open-source models, which share their code. Mistral and Aleph Alpha have both looked to get market traction by adopting that approach. Open-source models did get an exemption from some obligations under the AI Act, but not if they pose a “systemic risk,” which suggests more powerful open-source models will still face regulation.

The U.S. hasn’t passed a single piece of comprehensive legislation on AI, despite calls from the Biden administration for Congress to work on such a law in relation to data privacy.

Instead, President Joe Biden has issued an executive order and some U.S. companies have made a series of voluntary pledges on AI safety; there has also been a patchwork of local regulation. The White House has also set up the U.S. Artificial Intelligence Safety Institute to develop guidelines on the technology.

While much depends on implementation, the European regulation on the face of it gives EU authorities clearer legal power to act on perceived breaches of AI rules compared with Biden’s executive order. However, it could also limit the market for certain AI applications in Europe.

Share news on social media

Follow us on social network

Azerbaijani pavilion launched at 60th Venice Biennale

Baku hosts inauguration of FIG Rhythmic Gymnastics World Cup 2024

Azerbaijan’s National Olympic Committee hosts meeting with Bahamas Olympic Committee Vice President

Press release on the outcomes of the 8th meeting of the State Commission on the Delimitation of the State Border between the Republic of Azerbaijan and the Republic of Armenia, and the Commission on the Matters of Delimitation of the State Border and Border Security between the Republic of Armenia and the Republic of Azerbaijan

Azerbaijani FM informs Algerian ambassador about current situation in the region

Azerbaijan, Italy discuss multifaceted strategic partnership

® Bakcell CEO meets with journalists in Khankendi

® Registration for Azercell-supported "Techcell" hackathon is now open

Dubai airport limits arriving flights amid storm backlog

NASA greenlights 2028 launch for epic Dragonfly mission to Saturn's huge moon Titan

® Global Finance Names the Innovators 2024: Kapital Bank has been awarded the prestigious “Best Use of AI in Digital Transformation” award

Lille's Yusuf Yazici goes down in club history, but Aston Villa make Europa Conference League semis

Azerbaijani shooters to compete at ISSF Final Olympic Qualification Championship

"Azerbaijan Airlines" becomes member of ACI Europe

Azerbaijani FM, Palestinian PM discuss situation in Gaza

ANAMA: Large amount of military ammunition found at farm in liberated Khojavand district

IRENA 14th Assembly highlights deployment of renewable energy sources in Africa

Public hearings on objections raised by Azerbaijan at International Court of Justice conclude

Baku Airport once again awarded Skytrax

Baku to host diplomacy academies’ meeting of Organization of Turkic States

Azerbaijani table tennis player grabs bronze at WTT Youth Contender Luxembourg 2024

Baiba Braze appointed Latvia's foreign minister

Delegation of Azerbaijani Central Election Commission to monitor elections in Maldives

Sony, Apollo discuss joint bid for Paramount, says source

® Azercell announces Crisis Management Group Project

Kazakhstan manufactures over 30,000 vehicles in Q1 2024

Turkish AI defense firm secures investment at valuation of $12.5M

Kenya’s military chief dies in a helicopter crash

Apple says it was ordered to pull WhatsApp from China app store

WHO warns growing spread of bird flu to humans is 'enormous concern'

Azerbaijan, CICA discuss prospects for partnership within COP29

Netflix adds 9.3 million new subscribers, beats expectations

Azerbaijan attends Ankara Industrial Cooperation Days in Defense and Aerospace

"Caspian Sky-2024" joint tactical exercise conducted

Azerbaijan`s pavilion to showcase at 60th Venice Biennale

Fenerbahce exit Europa Conference League after loss to Olympiacos on penalties

AzInTelecom joins United Nations Global Compact

AI for Earth: How NASA’s artificial intelligence and open science efforts combat climate change

391 people die of cholera, dengue fever in Sudan

Azerbaijan, International Dialogue Centre discuss prospects for cooperation

SOCAR and ACWA Power forge cooperation for Low Carbon / Green Fertilizer Project

Oil prices go up in global markets

Azeri Light crude dips to $88

Iran sanctions: US and UK extend measures against Tehran

Azerbaijan`s Milli Majlis hosts scientific conference on "New Caledonia: History, contemporary challenges and expected future”

Chair of New Caledonian Congress Committee: COP29 will contribute to addressing global climate change problems

Dubai Food Festival 2024 set to begin April 19

Google fires 28 employees for protesting Israel cloud deal

® Azercell participates in ADA Employability Week

Azerbaijan`s Milli Majlis and New Caledonian Congress sign MoU on cooperation VIDEO

Azerbaijan is a genuine example for us, says Chair of New Caledonian Congress Committee VIDEO

New Caledonian Congress member thanks Azerbaijan for support VIDEO

Azerbaijan, Türkiye discuss prospect for agricultural cooperation

Turkish minister: Baku-hosted COP29 session is important for entire world

® Transfer your loans to Kapital Bank and get a loan without cash withdrawal commission

Head of Azerbaijan's State Service of Special Communication and Information Security explore opportunities for cooperation with his Romanian counterpart

Azerbaijani NGOs and residents of Karabakh and East Zangezur send open letter to Norwegian Nobel Committee

SpaceX launches 23 Starlink satellites into space

Azerbaijani judo referee to officiate at Paris 2024 Paralympic Games

® Azercell hosts the GSMA M360 Eurasia in Baku for the second time

Azerbaijan explore prospects for social security cooperation with Türkiye and Moldova

New Caledonian delegation visits Baku Initiative Group office

Possibilities for cooperation between Baku Higher Oil School and higher educational institutions in Uzbekistan discussed

Azerbaijani female chess players to fight for glory at European championship in Greece

Tsunami alert after a volcano in Indonesia has several big eruptions and thousands are told to leave

The Last Caravaggio review – a gripping and murderously dark finale

Azerbaijan, Ukraine discuss COP29-related issues

The Oslo Statement creates new challenges on people development

71 killed, 67 injured in rain-related accidents in Pakistan

French police evict hundreds from abandoned Paris warehouse ahead of Olympics

Azerbaijan, Pakistan discuss educational cooperation

Azerbaijani military pilots professionally conduct training flights VIDEO

Azerbaijan’s Energy Minister embarks on visit to US

Protests, heightened terror threat mean tight security at Eurovision Song Contest in Sweden

Azerbaijan to promote its culture in Spain

Fenerbahce to host Olympiacos in Conference League quarterfinal 2nd leg

Two Azerbaijani gymnasts into final of FIG Apparatus World Cup

Azerbaijan, EBRD discuss green energy partnership in Abu Dhabi

New Caledonian delegation visits Heydar Aliyev Center VIDEO

31 years pass since the Bashlibel tragedy, one of the bloodiest pages of our history

Oil prices go up in global markets

U.S. Department of State responds to AZERTAC's inquiry

Combined Arms Army’s Air Force holds tactical-special exercise, Defense Ministry

Azerbaijani oil price declines in global markets

Bayern Munich, Real Madrid advance to UEFA Champions League semifinal

Cabinet of Ministers convenes to address implementation of order on electric vehicle promotion

Azerbaijan names 18 boxers for European Championships in Belgrade

Potential priorities and plans of Azerbaijan`s CICA chairmanship in 2024-2026 discussed

® Kapital Bank OJSC's bonds placed at Baku Stock Exchange

AZAL and DFS Aviation Services agree to modernize Lachin Airport

Action plan related to designation of city of Shusha as 'Youth Capital of Organization of Islamic Cooperation' to be prepared - ORDER

International Renewable Energy Agency’s 14th Assembly continues with panel sessions

New Caledonian delegation visits NAM Youth Organization’s headquarters VIDEO

Over 90 pct of Sudanese school-age children deprived of formal education due to conflict: UNICEF

Chair of New Caledonian Congress Committee visits St. Mary's Catholic Church in Baku VIDEO

Submissions open for 2nd Silk Road Global News Awards

‘New Caledonian people highly appreciate Azerbaijan’s support’

Former No. 1 pick Blake Griffin retires after 14 seasons

‘Revenues from Azerbaijan’s transport sector increased by 15 per cent’

Around 40 new epidemics recorded each year in West African sub-region