Big Changes: EU's AI Rules Are Now in Effect

The EU has taken a big step forward in regulating artificial intelligence. It's the first major region to create comprehensive rules for AI. The EU AI Act is now active. This means certain AI uses are now illegal and companies have to be careful about how they use AI. It is a huge change. The EU is serious about protecting its citizens from AI. This caused huge concern among businesses. The EU AI Act is strict. It bans things like social scoring systems, real-time facial recognition and other forms of biometric identification that categorize people by race, sex life, sexual orientation, and other attributes. It also bans "manipulative" AI tools. This is a list of things that the EU deems as posing "unacceptable risk" to citizens. It's abig deal and companies have to be ready. The EU's first-ever AI law came into force in August 2024. The deadline for companies to prepare for the newrestrictions and requirements officially ended on a Sunday. There are serious consequences for companies that don't follow the rules. Companies now have to comply with these restrictions. They can face penalties if they fail to do so. The EU has really upped the ante on AI regulation. Companies can face fines of up to 35 million euros or 7% of their global annual revenues — whichever amount is higher. No one knows exactly what it means for businesses. This is different than the GDPR, Europe's digital privacy law. Companies face fines of up to 20 million euros or 4% of annual global turnover for GDPR breaches. The EU AI Act is a big deal. It is a first-of-its-kind regulatory framework for AI. This is the first time a region has created comprehensive rules for AI. This is a huge change for businesses. This is a huge change for citizens. Businesses have to be ready. Citizens have to be ready. The EU is serious about protecting its citizens from AI. This could have a big impact on businesses and citizens.