https://www.cnbc.com/2024/08/01/eu-ai-act-goes-into-effect-heres-what-it-means-for-us-tech-firms.html

The EU Artificial Intelligence (AI) Act, which went into effect on August 1, 2024.

This act implements a risk-based approach to AI regulation, categorizing AI systems based on the level of risk they pose. High-risk systems, such as those used in healthcare, transport, and law enforcement, face stringent requirements, including risk management, transparency, and human oversight.

Key provisions of the AI Act include:

1. Transparency and Safety Requirements: AI systems must be designed to be safe, transparent, and easily understandable to users. This includes labeling requirements for AI-generated content, such as deepfakes​ (Engadget)​.
2. Risk Management and Compliance: Companies must establish comprehensive governance frameworks to assess and manage the risks associated with their AI systems. This includes compliance programs that cover data privacy, ethical use, and geographical considerations​ (Faegre Drinker Biddle & Reath LLP)​​ (Passle)​.
3. Copyright and Data Mining: Companies must adhere to copyright laws when training AI models, obtaining proper authorization from rights holders for text and data mining unless it is for research purposes​ (Engadget)​.
4. Prohibitions and Restrictions: AI systems that manipulate behavior, exploit vulnerabilities, or perform social scoring are prohibited. The act also sets out specific rules for high-risk AI applications and imposes fines for non-compliance​ (Passle)​.

For US tech firms, compliance with the EU AI Act is critical due to the EU’s significant market size