Artificial Intelligence

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 <h2 data-ct-widget="explained-block-title" id="overview-of-the-eu-artificial-intelligence-act">Overview of the EU Artificial Intelligence Act</h2>
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 <p style="text-align:justify"><em>The EU Artificial Intelligence Act is a landmark regulatory framework aimed at governing the use and development of AI technologies within the European Union.&nbsp;</em></p>
 <p>Its primary objective is to ensure that artificial intelligence (AI) systems are developed and deployed in a way that respects EU values and fundamental rights and <a href="https://cointelegraph.com/news/european-union-ai-act-passes-in-parliament" rel="noopener noreferrer nofollow">complies with existing legal standards</a>. This includes a focus on human-centric and trustworthy AI, emphasizing the need for AI systems to be secure, transparent and accountable, thus safeguarding citizens’ rights and freedoms.</p>
 <p>This regulation underscores the EU’s commitment to leading the <a href="https://cointelegraph.com/explained/ethical-considerations-in-ai-development-and-deployment" rel="noopener noreferrer nofollow">ethical approach to AI</a> globally. By setting standards for high-risk AI systems, data governance and transparency, the act seeks to foster innovation while ensuring that AI technologies are not detrimental to public interests.&nbsp;</p>
 <p>It reflects a balance between encouraging technological advancements and protecting societal and individual rights, making the EU a pioneer in defining the legal boundaries for AI’s application and impact.</p>
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 <h2 data-ct-widget="explained-block-title" id="clarification-of-ai-systems-and-their-applications-by-the-eu-artificial-intelligence-act">Clarification of AI systems and their applications by the EU Artificial Intelligence Act</h2>
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 <p style="text-align:justify"><em>The EU Artificial Intelligence Act provides a comprehensive definition of AI systems and their applications, aiming to encompass a wide range of AI technologies and uses.&nbsp;</em></p>
 <p>The clarification includes machine learning approaches, logic and knowledge-based approaches, and statistical approaches, as detailed in the Act’s Annex I. This broad definition allows the regulation to remain technologically neutral and future-proof, accommodating emerging AI technologies and applications.</p>
 <p><img alt="EU Artificial Intelligence Act's Annex I" src="https://s3.cointelegraph.com/storage/uploads/view/f59dc59e5b686ace0d55c2f955a24652.jpg" title="EU Artificial Intelligence Act's Annex I"></p>
 <p>Simultaneously, the act establishes an ethical and legal framework to ensure that these AI systems are developed and used in a way that is consistent with EU values and fundamental rights. It emphasizes the need for AI systems to be transparent and accountable and safeguard individual rights, striking a balance between encouraging technological innovation and protecting societal interests.</p>
 <p>In essence, the EU Artificial Intelligence Act integrates union values and fundamental rights, emphasizing AI’s alignment with democratic principles, the rule of law and <a href="https://cointelegraph.com/news/environmental-impact-of-ai-pioneering-solutions-for-a-sustainable-future" rel="noopener noreferrer nofollow">environmental sustainability</a>. This integration ensures that AI development respects human dignity, freedom, democracy, equality and the rule of law. Additionally, the act addresses <a href="https://cointelegraph.com/learn/dangers-of-artificial-intelligence" rel="noopener noreferrer nofollow">AI’s potential impacts on democracy and the environment</a>, underscoring the need for responsible AI that supports societal interests and environmental stewardship.</p>
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 <h2 data-ct-widget="explained-block-title" id="alignment-of-the-eu-artificial-intelligence-act-with-gdpr-and-other-data-protection-regulations">Alignment of the EU Artificial Intelligence Act with GDPR and other data protection regulations</h2>
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 <p style="text-align:justify"><em>In terms of data governance and protection, the EU Artificial Intelligence Act aligns with existing <a href="https://cointelegraph.com/news/eu-data-protection-regulators-urge-anonymity-smaller-transactions-in-digital-euro" rel="noopener noreferrer nofollow">EU data protection laws</a>, including the General Data Protection Regulation (GDPR), to ensure the ethical handling of personal data in AI systems.&nbsp;</em></p>
 <p>This includes provisions for data quality, security and privacy, ensuring that AI systems process data in a manner that respects user privacy and data protection rights. The act also provides specific guidelines for biometric identification, stressing the importance of safeguarding personal privacy and security, particularly in the handling of sensitive biometric data.&nbsp;</p>
 <p>Additionally, it categorizes certain AI systems as high-risk, necessitating stringent compliance and oversight to mitigate potential harms and risks associated with their use. The act establishes specific criteria for identifying and regulating high-risk AI systems. These criteria focus on AI applications that have significant implications for individuals’ rights and safety, like those used in critical infrastructure, employment and essential public services.&nbsp;</p>
 <p>The regulation mandates strict compliance standards and certification requirements for these systems, ensuring they meet high levels of safety, transparency and accountability. This approach addresses potential risks and harms, aiming to prevent or minimize the negative impacts of AI on individuals and society.</p>
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 <h2 data-ct-widget="explained-block-title" id="procedures-for-certification-and-market-surveillance">Procedures for certification and market surveillance</h2>
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 <p style="text-align:justify"><em>The EU Artificial Intelligence Act introduces harmonized regulations for AI systems within the EU’s internal market, ensuring a unified and consistent approach across member states.&nbsp;</em></p>
 <p>This standardization addresses the development and deployment of AI technologies, promoting adherence to EU-wide safety and ethical standards. Additionally, the act details certification and market surveillance procedures to ensure compliance before AI systems enter the market and ongoing monitoring for adherence to standards. As per the act, market surveillance authorities can access high-risk AI system source codes if:</p>
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  <li>It is necessary to check compliance with set requirements.</li>
  <li>Testing and provided data/documentation are insufficient.</li>
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 <p>In terms of AI liability and accountability, the act clearly delineates that developers and deployers of high-risk and <a href="https://cointelegraph.com/news/artificial-general-intelligence-singularitynet-coo-future-blockchain-summit" rel="noopener noreferrer nofollow">general-purpose AI</a> systems must establish robust AI governance frameworks and compliance systems. This framework ensures that any harm or legal violations resulting from AI technologies are addressed, emphasizing the importance of responsible innovation and the deployment of AI systems.</p>
 <p>The Act underlines the need for accountability in the rapidly evolving field of AI, ensuring that advancements are aligned with ethical and legal norms. Additionally, the act outlines AI auditing procedures and transparency measures, focusing on maintaining high standards of accountability and openness in AI system operations. The act also details potential <a href="https://babl.ai/navigating-potential-penalties-under-the-eu-ai-act/" rel="noopener noreferrer nofollow" target="_blank">penalties</a> (up to 40 million euros, or 7% of annual worldwide turnover) and actions against non-compliance, reinforcing the importance of accountability in the AI landscape.</p>
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 <h2 data-ct-widget="explained-block-title" id="public-sector-and-cross-border-collaboration-in-ai-governance">Public sector and cross-border collaboration in AI governance</h2>
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 <p style="text-align:justify"><em>The act promotes ethical AI in public services, urges global cooperation, and advocates for human oversight in automated decisions, fostering cross-border collaboration for a competitive and values-aligned AI ecosystem.</em></p>
 <p>The act addresses AI’s use in the public sector and cross-border collaboration. It recognizes the significant role of AI in public services and emphasizes the need for <a href="https://cointelegraph.com/news/ibm-meta-others-form-ai-alliance-advance-ai-development" rel="noopener noreferrer nofollow">international cooperation in AI development</a>. The act encourages member states to collaborate on AI initiatives, ensuring that AI technologies used in public services are ethical, transparent and effective.&nbsp;</p>
 <p>The act emphasizes the need for human oversight in cases where automated decisions may have significant consequences for individuals, such as in employment or access to public services. This approach aligns with the act’s overall objective of promoting trustworthy and human-centric AI systems.</p>
 <p>Furthermore, the act highlights the importance of cross-border collaboration in AI, advocating for shared strategies to foster innovation and development in the AI sector. This approach is designed to create a dynamic AI innovation ecosystem that is globally competitive and aligned with EU values and standards.</p>
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 <h2 data-ct-widget="explained-block-title" id="the-eu-artificial-intelligence-act-encourages-ai-research-and-development">The EU Artificial Intelligence Act encourages AI research and development</h2>
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 <p style="text-align:justify"><em>The EU Artificial Intelligence Act demonstrates strong support for AI innovation, particularly for small and medium-sized enterprises (SMEs) and startups.&nbsp;</em></p>
 <p>It recognizes the importance of fostering an environment conducive to innovation where these smaller entities can thrive. The act outlines measures to reduce regulatory burdens on SMEs while ensuring that they have access to necessary resources, including guidance on compliance standards. By doing so, it aims to promote entrepreneurial AI research and development, helping these innovative companies to grow and contribute to the EU’s AI ecosystem.</p>
 <p>Furthermore, the act encourages AI research and development across the board. It acknowledges the critical role that research plays in advancing AI technologies and specifies that AI research should be conducted with ethical principles in mind.&nbsp;</p>
 <p>By emphasizing responsible innovation, the act promotes the development of AI technologies that align with EU values and fundamental rights. It also addresses automated decision-making and enforcement, recognizing the need for clear mechanisms and safeguards to prevent misuse and protect individual rights. These provisions collectively demonstrate the EU’s commitment to promoting AI research, development and deployment while ensuring ethical and legal standards are upheld.</p>
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The EU’s Artificial Intelligence Act, explained

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