One of the most significant pieces of legislation to be adopted by the outgoing EU mandate, the Artificial Intelligence Act (AI Act) was finally published in the Official Journal on 12 July 2024. It is due to come into force on 1 August 2024 and will become applicable in a phased manner from between six and 36 months thereafter, with most provisions applying after 24 months.
As the world’s most comprehensive legislative framework for AI developers, deployers and importers. the new Regulation seeks to guarantee that AI systems placed on the European Union internal market are secure, uphold current laws regarding fundamental rights and adhere to EU values.
Taking the form of a Regulation, the AI Act is directly applicable on the EU’s 27 Member States. The Act takes what the EU institutions have described as a “risk-based approach”:
Provisions regarding prohibitions will apply already six months after the Regulation’s entry into force on 1 August 2024, while requirements for GPAI will apply 12 months after. Most of the other provisions in the AI Act will apply 24 months after it enters into force, while some specific requirements for high-risk AI systems will apply after 36 months.
With regard to enforcement, the European Commission has established an AI Office on 16 June 2024, which is now located within the Commission’s Directorate General for Communications Networks, Content and Technology (DG CNECT), under the leadership of Lucilla Sioli. The AI Office has exclusive authority over GPAI models and has responsibility for developing the EU’s expertise and capabilities in the field of artificial intelligence.
The European AI Office has been restructured into five units and two advisory roles. These are:
Overall, the AI Office is expected to employ over 140 staffers, including economists, technology specialists, administrative assistants, lawyers and policy specialists.
In addition to the AI Office, Member States will be required to appoint national competent authorities who will have responsibility for supervising the application and implementation regarding conformity to high-risk and prohibitions. An AI Board, comprising representatives from these Member States, will be established with the aim of providing a coherent implementation of Regulation. An Advisory Forum of stakeholders and a Scientific Panel of independent experts will also be established.
Penalties for infringements of the new Regulation can reach up to EUR 35 million or 7% of annual global turnover, and up to EUR 15 million or 3% depending on the violation. Incorrect reports can result in penalties of up to EUR 7.5 million or 1.5% of annual turnover. Additionally, providers can be forced to withdraw non-compliant AI systems from the market.
The European Commission is planning to come forward with around 20 follow up documents by August 2026 including secondary legislation (Delegated Acts and Implementing Acts), guidelines and templates, in addition to codes of conduct, to support implementation of the AI Act. This is in addition to work on codes of practice to demonstrate compliance for general-purpose AI models until harmonised standards are established. Subsequently, the Commission may grant these codes EU-wide validity through an Implementing Act. Looking ahead, the new European Parliament is also expected to focus on the relationship between AI and copyright and on the use of AI in the workplace.
As a resource for your organisation, you can access Bird & Bird’s EU AI Act flyer here.
Furthermore, to guide you through the key aspects of the Act, our multi-disciplinary team is producing an AI Act Guide which highlights the most important actions organisations should take in seeking to comply with the new Regulation. If you’d like to be the first to receive the Guide in your inbox upon launch, please register your interest using our form here.
For further information, please contact Francine Cunningham, Paolo Sasdelli and Paula Alexe.