European Parliament Approves Groundbreaking Artificial Intelligence Act: Balancing Innovation and Safeguarding Fundamental Rights

The European Parliament has approved the Artificial Intelligence Act, marking a significant step toward regulating high-risk AI applications, protecting fundamental rights, and promoting innovation. The regulation, agreed upon in December 2023 after negotiations with member states, received overwhelming support from MEPs, with 523 votes in favor, 46 against, and 49 abstentions.

The primary objective of the Artificial Intelligence Act is to strike a balance between fostering innovation and ensuring the safety and compliance of AI technologies with fundamental rights. The legislation aims to position Europe as a global leader in the field while addressing potential risks associated with high-risk AI applications.

Banned Applications and Safeguards

The new rules introduce a set of prohibitions on certain AI applications deemed a threat to citizens' rights. These include biometric categorization systems based on sensitive characteristics, untargeted scraping of facial images for facial recognition databases, emotion recognition in workplaces and schools, social scoring, predictive policing based solely on profiling, and AI that manipulates human behavior or exploits vulnerabilities.

Law enforcement exemptions are outlined, allowing the use of biometric identification systems under strict conditions. Real-time deployment requires specific safeguards, including limited use in time and scope and prior judicial or administrative authorization. Post-facto ("post-remote RBI") deployment is considered high-risk and necessitates judicial authorization linked to a criminal offense.

The legislation sets clear obligations for high-risk AI systems, covering critical areas such as infrastructure, education, employment, essential services, law enforcement, migration, border management, justice, and democratic processes. High-risk AI systems must assess and mitigate risks, maintain use logs, ensure transparency and accuracy, and incorporate human oversight. Citizens retain the right to submit complaints about AI systems affecting their rights.

General-purpose AI (GPAI) systems must adhere to transparency requirements, including compliance with EU copyright law and detailed summaries of training content. More powerful GPAI models, posing systemic risks, face additional obligations such as model evaluations, assessment, and mitigation of systemic risks, along with incident reporting. Artificial or manipulated content, such as "deepfakes," must be clearly labeled.

Measures to Support Innovation and SMEs

To promote innovation, regulatory sandboxes and real-world testing will be established at the national level, accessible to SMEs and startups for developing and training innovative AI technologies before market placement.

During the plenary debate, Internal Market Committee co-rapporteur Brando Benifei emphasized the significance of the world's first binding law on AI, addressing risks, creating opportunities, combating discrimination, and ensuring transparency. Civil Liberties Committee co-rapporteur Dragos Tudorache highlighted the link between AI and fundamental values, emphasizing the need for continued work beyond the AI Act itself.

The regulation undergoes a final lawyer-linguist check and is expected to be officially adopted before the end of the legislative term through the corrigendum procedure. Formal endorsement by the Council is required. The law will come into force 20 days after publication in the official Journal and be fully applicable 24 months after entry into force, with specific provisions having different timelines. The AI Act responds directly to citizens' proposals from the Conference on the Future of Europe, aligning with key themes on competitiveness, a safe and trustworthy society, digital innovation, and responsible AI use.

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