STRASBOURG, March 13 (Reuters) – In a significant step toward implementing the world’s first regulations on artificial intelligence, Europe advanced on Wednesday as EU legislators backed a provisional agreement for a technology increasingly prevalent across numerous industries and in daily life.
After three years of development, the AI Act comes at a time when generative AI systems like Microsoft-backed (MSFT.O) OpenAI’s ChatGPT and Google’s (GOOGL.O) chatbot Gemini are gaining popularity, raising concerns about misinformation and fake news.
The legislation will oversee high-impact, general-purpose AI models and high-risk AI systems, imposing specific transparency obligations and adhering to EU copyright laws. It also limits governments’ use of real-time biometric surveillance in public spaces to cases of certain crimes, prevention of genuine threats such as terrorist attacks, and searches for individuals suspected of serious crimes.
EU industry chief Thierry Breton welcomed the European Parliament’s overwhelming support for the EU AI Act, describing it as the world’s first comprehensive, binding framework for trustworthy AI. Breton stated, “Europe is now a global standard-setter in trustworthy AI.”
With 523 EU lawmakers voting in favor of the deal, 46 against, and 49 abstaining, EU countries are expected to formally approve the deal in May. The legislation is set to come into effect early next year, with full application in 2026, though some provisions will take effect sooner.
Patrick Van Eecke, a partner at law firm Cooley, noted that Brussels has established a benchmark for the rest of the world with the AI Act, comparing its significance to the EU’s privacy regulation, GDPR. However, he highlighted significant bureaucratic hurdles for companies.
Under the regulations, companies could face fines ranging from 7.5 million euros or 1.5% of turnover to 35 million euros or 7% of global turnover, depending on the severity of violations. Lobbying group BusinessEurope expressed concerns about the implementation of the rules, emphasizing the importance of legal certainty and interpretation.
Amazon, which has begun introducing a new AI assistant, expressed support for the vote, emphasizing its commitment to collaborating with the EU and industry for the safe, secure, and responsible development of AI technology.
Meta Platforms (META.O) cautioned against measures that could hinder innovation, with Marco Pancini, Meta’s head of EU affairs, emphasizing the need for openness to realize AI’s potential in fostering European innovation and enabling competition.