The EU has Released its First Legal Framework for AI Regulation

See how this AI framework will impact the local businesses and people.

AI has become a part of all our lives. Our cars have automatic braking, platforms like Netflix and Spotify have recommendations, and Alexa and Google can search things for us on command, all powered by artificial intelligence. Although this technology comes with a lot of convenience and advantages, people are also concerned about its dangers. Inadequate security and ethical problems are a few examples of the cons that come with AI.

In response to these dangers, the European Union has decided to work on a legal framework to regulate the way AI is used. Recently, the first legal framework was presented by the European Commission which was in work for a long time.

On April 21, 2021, the European Commission developed a proposal for a legal AI framework via 108-pages and nine annexes. This framework consists of a risk-based approach that divides the AI usage into unacceptable risk, a high risk, or a low-risk task. Obviously, if the risk is unacceptable, it's a threat to people and rightfully prohibited. Any AI usage that can manipulate human behavior and systems that allow social-credit scoring falls under this category.

High-risk has been defined as a system that is intended to be used for a security reason, which needs to be checked by a third party. Annex III of the European Commission's proposal considers eight areas, namely AI-systems related to critical infrastructure, educational training, safety components of products, and employees' selection. These items need to undergo strict checks before going into the market along with human control afterward.

If an AI system is classified as low-risk, it must adhere to the transparency obligations where users should be aware that they are interacting with a machine. This is to keep a check on technologies like DeepFake. An exception to this is AI systems that pose little or no risk to European citizens, like AI in video games.

There's something for non-high-risk AI systems too. The regulations provide an environment that allows the development and testing of innovative AI systems. The Commission's proposal represents a significant step towards the regulation of AI technology. Once the European Parliament and the member states adopt the proposal, the new legal framework will have a strong impact on many citizens and companies. Several AI systems have shown biases, like Amazon's recruiting system that discriminated against women, or Tesla's autopilot mode in the car that caused the death of two men. These examples lead to serious introspection which resulted in this regulation. What is now started by the European Commission might be taken forward by other non-EU countries, as well.