- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-12-12T19:41:00
The European Union’s landmark legal framework to regulate artificial intelligence (AI) received political agreement Friday, moving one step closer to official adoption.
The deal between the European Parliament and the Council on the AI Act advances the legislation to formal approval, which would put it on track to take full effect as soon as 2026. Certain provisions of the act, such as regarding general purpose AI, would apply within the first year of its adoption and entry into force.
During the transition period, the European Commission said in a press release it would launch an “AI Pact” that companies can voluntarily commit to to begin early implementation of the AI Act’s measures. European Commission President Ursula von der Leyen said in a statement around 100 companies have expressed interest in the pact.
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As the European Union’s AI Act sets its sights on 2026 to take full effect, experts are concerned other key jurisdictions might introduce divergent legislation that treats artificial intelligence use differently, thus making it difficult for companies to ensure compliance.
Compliance functions are largely unprepared for the European Union’s AI Act, with many still unaware of what artificial intelligence their organizations are using or the risks the technology poses to their business, according to experts.
The European Union wants to bolster tech innovation within the single market as artificial intelligence is predicted to catapult economic growth, but some have expressed fears AI use might conflict with levels of automatic protection expected under the General Data Protection Regulation.
Any product that uses AI needs to be safety assessed for its entire lifespan under new rules that went into effect recently across the EU. Experts warned companies using AI to tailor products could be classed as “manufacturers” and face the same duty of care as developed.
When lawmakers slam the U.K.’s chief financial regulator as “incompetent,” it not only opens the doors for others to pile criticism on it, but it sparks a debate about how the organization can be improved–or removed.
The U.K. Financial Conduct Authority apologized to investors in peer-to-peer investment firm Collateral for not acting swiftly enough to prevent Collateral from defrauding its customers.
