The European Union's parliament has approved the world's first set of regulations aimed at governing artificial intelligence (AI). The EU AI Act, proposed in 2021, divides AI technologies into categories of risk, from "unacceptable" to low hazard.

The EU AI Act establishes four levels of risk, providing a framework for overseeing the development and deployment of AI models. This legislation marks a pivotal moment in the global governance of AI in the European Union.

Standards for Responsible AI Development

According to a statement by the European Parliament, the implementation of the EU AI Act is scheduled to begin in 2025, after final checks and endorsement from the European Council. The regulation aims to strike a balance between fostering innovation and safeguarding fundamental rights.

During the European Parliament’s plenary debate on Tuesday, the Internal Market Committee Co-Rapporteur, Brando Benifei, mentioned: "We finally have the world's first binding law on artificial intelligence to reduce risks, create opportunities, combat discrimination, and bring transparency."

"Thanks to Parliament, unacceptable AI practices will be banned in Europe, and the rights of workers and citizens will be protected. The AI Office will now be set up to support companies to start complying with the rules before they enter into force. We ensured that human beings and European values are at the very center of AI's development."

Parliament has approved the Artificial Intelligence Act that aims to ensure safety and compliance with fundamental rights, while boosting innovation.

Find out more: https://t.co/zUkjfl49Gg pic.twitter.com/RINidgBwhO

— European Parliament (@Europarl_EN) March 13, 2024

Challenges and Implementation

Despite reaching this milestone, challenges remain, particularly regarding implementation. Dragos Tudorache, a lawmaker involved in EU negotiations, highlighted the importance of effectively implementing the regulations to realize their intended impact.

Tudorache mentioned: "Much work lies ahead that goes beyond the AI Act itself. AI will push us to rethink the social contract at the heart of our democracies, our education models, labour markets, and the way we conduct warfare. The AI Act is a starting point for a new model of governance built around technology. We must now focus on putting this law into practice."

The EU's move to regulate AI occurs amidst a broader effort to assert control over tech giants and address concerns over anti-competitive practices, CNBC reported. The recent enforcement of landmark competition legislation underscores the EU's commitment to promoting fairness and competition in the digital marketplace.

As concerns over the ethical use of AI continue to mount, Europe's proactive approach to regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term sets a precedent for other regions. By establishing clear guidelines and oversight mechanisms, the EU AI Act aims to foster trust in AI technologies while mitigating potential risks.