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The EU AI Act:
What You Need to Know
The EU AI Act is principally concerned with protecting EU citizens through
new mechanisms that impact the entire AI lifecycle:
Article 1: Subject Matter
The purpose of this regulation is to improve the functioning of the internal
market and promote the uptake of human-centric and trustworthy artificial
intelligence (AI), while ensuring a high level of protection of health and
safety,
fundamental rights enshrined in the charter, including democracy, the rule of
law, and environmental protection, against the harmful effects of AI systems
in the Union and supporting innovation.
2. NEW OBLIGATIONS FOR GENERAL PURPOSE AI GPAI
PROVIDERS, CONSEQUENTIAL FOR DOWNSTREAM USERS
Two tiers of
general-purpose
AI models
Independent of the tier, all
GPAI providers face new
documentation duties
Providers of GPAI models with
systemic risk will be on tighter
scrutiny, with responsibilities
towards proactive risk mitigation
Compared to the GDPR, where higher fines can reach up to 2% of global turnover
or
$10 million, penalties for infringing the EU AI Act can be up to 3.5x higher,
potentially
reaching 7% of global turnover or €35 million:
3. PENALTIES FOR NONCOMPLIANCE
Of total annual
worldwide turnover for
preceding financial year
Of total annual
worldwide turnover for
preceding financial year
FinesFines
EU AI Act
penalty
GDPR
penalty
Up to 2%
EU AI Act
penalty
GDPR
penalty
FinesFines
Up to €35 Million
Up to €15 Million
Up to €15 Million
Of total annual
worldwide turnover for
preceding financial year
Of total annual
worldwide turnover for
preceding financial year
Up to 7%
Up to 3%
Up to 3%
UNACCEPTABLE RISK
HIGH RISK
MINIMAL RISK
Up to
€35 Million
Up to
$10 Million
Up to 7%
3.5x3.5x 3.5x3.5x
What’s Next? Ask Yourself:
1. Do I know all AI systems currently operationalized
and in development across my organization?
2. Am I confident about the associated risk levels of
those systems?
3. Are there teams in my organization that are
getting ready for the EU AI Act?
DOWNLOAD YOUR EU AI ACT COMPLIANCE CHECKLISTDOWNLOAD YOUR EU AI ACT COMPLIANCE
CHECKLIST
HIGH RISK
AI systems with serious potential of harm
e.g., biometric identification, emotion recognition systems, AI in critical
infrastructure, used in worker management
Must meet specific pre- and post-marketization requirements (Art. 8-15)
UNACCEPTABLE RISK
AI systems with untenable potential of harm
e.g., systems that predict criminal behavior or expand facial recognition
databases via unauthorized methods
These cannot be deployed (Art. 5)
LIMITED RISK
AI systems with some potential of harm
e.g., those generating or manipulating audio, video, text, or image content
as well as chatbots
Disclose AI-generated content and inform users they are interacting
with AI systems, with the option for voluntary governance (Art. 50)
MINIMAL RISK
AI systems with no potential of harm
e.g., spam filters and AI-enabled video games
No new obligations with the option for voluntary governance (Art. 95)
1. RISK LEVELS FOR AI USE CASES


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