With all of the excitement and hype around Artificial Intelligence tools and models, which are still relatively unencumbered by US laws and regulations having broad applicability, it bears noting that the EU is methodically progressing toward an all-encompassing Regulation on Artificial Intelligence (commonly referred to as the "AI Act") that could have a global impact on the use of AI models akin to the impact that the General Data Protection Regulation ("GDPR") has had on data privacy.
While some applaud the AI Act's potential to significantly raise the standards with regard to transparency and accountability, technology companies and others fear that it may be highly burdensome, if not technically impossible, to comply with some of the AI Act's requirements.
The AI Act is still a ways from becoming law. In December 2022, the EU Council adopted amendments to the draft bill that make it somewhat more business-friendly. Interinstitutional negotiations will now begin, and the AI Act could become law by the end of 2023. Companies will then likely have two-to-three years to comply.
The MMM team will track the progress of the AI Act and monitor other regulatory efforts regarding AI in the US and elsewhere.
