Entry into force of the first obligations of the IA Regulation
On February 2nd, the first obligations of the European Artificial Intelligence Regulation (hereinafter, “AIR”) came into force, marking the beginning of companies’ and organizations’ adaptation to a new regulatory framework that imposes strict restrictions and penalties of up to €35 million or 7% of annual turnover in cases of non-compliance.
Obligations under the AI Act
Through its Article 113, the AIR established a phased entry into force to facilitate organizations’ adaptation to its requirements. The first obligations, effective as of February 2nd, focus on two main areas:
i) AI literacy
Article 4 of the Regulation introduces the obligation of AI literacy: the skills, knowledge, and understanding that enable providers, deployers, and other affected persons, taking into account their respective rights and obligations under this Regulation, to carry out informed deployment of AI systems and to be aware of the opportunities and risks posed by AI, as well as the harm it may cause.
This obligation means that both AI providers and deployers must ensure that their staff have an adequate understanding of AI capabilities, how these systems function internally, and the associated risks and opportunities.
ii) Prohibition of unacceptable risk AI practices
Article 5 of the AIR prohibits certain AI applications considered to pose an “unacceptable risk” due to their potential to infringe upon fundamental rights or endanger safety. While AI offers significant opportunities, it also introduces substantial risks to the protection of individuals’ rights, particularly through its potential misuse.
For this reason, the Regulation has restricted certain uses deemed unacceptable as they conflict with the values of the European Union. These prohibited practices include: subliminal manipulation, exploitation of vulnerabilities, social scoring, crime prediction, and emotional recognition in workplace and educational environments.
Who is affected by this Regulation
There are two categories of subjects concerning AI literacy: on one hand, those with an active duty to provide it, such as providers (natural or legal persons who develop or market AI systems) and deployers (those who operate these systems under their own authority); and, on the other hand, those who have the right to receive such literacy, including the staff of these entities and any individuals involved in the operation of the systems, regardless of the type of collaboration.
Regarding the prohibitions, these apply to all companies. Nowadays, nearly all organizations—and many individuals—use various AI systems, making it essential to review which systems are in use, identify whether any fall under a prohibited category, and remove them if necessary to ensure compliance with the AIR.
Keys to complying with the new regulation
To comply with the new regulations of the Artificial Intelligence Regulation, organizations must begin by identifying and reviewing all the AI systems they use, assessing the risks associated with each one, and ensuring that their applications do not engage in prohibited practices such as subliminal manipulation or social scoring. Additionally, they must adapt their internal processes to meet the established standards, which includes implementing appropriate controls and oversight mechanisms to detect potential failures in the enforcement of the law.
It is also crucial to invest in staff training, providing education on the ethical principles, risks, and legal implications of using AI, ensuring that all employees understand their responsibilities and act responsibly.
Given the complexity of the regulation and the severe penalties for non-compliance, having the support of lawyers specialized in AI becomes essential. These professionals can help interpret the legal provisions correctly, ensure that policies and procedures are in line with the regulations, and anticipate any potential conflicts or regulatory issues, thus protecting the organization from significant legal and financial risks.
Expert legal advice will also be key to keeping the company updated on possible modifications or clarifications to the regulation, allowing for continuous and smooth adaptation to new regulatory requirements.
