Keeping Current with Deadlines in the EU's Artificial Intelligence Act (yes, it likely applies to American Companies)

February 2, 2025. For many, this date came and went by uneventfully.

For companies affected by the European Union's (EU) Artificial Intelligence (AI) act, it's an important date.

The EU AI Act's first compliance deadline was February 2, 2025. 

This date marked the start of prohibitions on AI systems that pose "unacceptable risks". 

Wait just a second. What is the EU AI Act?

The EU AI Act establishes a legal framework for AI development, marketing, and use. It also defines AI and categorizes AI systems by risk level.

What Companies are Affected?

The EU AI Act applies to anyone who develops, uses, imports, or distributes AI systems in the EU or European Economic Area (EEA). 

It also applies to companies outside the EU or EEA if they meet certain conditions (companies outside the EU if they use an AI system whose output is used in the EU).

So, back to February 2, 2025. What did the EU AI Act require on February 2, 2025? 

- AI system providers and deployers had to ensure that their employees and contractors have adequate AI literacy.

- AI system providers and deployers had to eliminate prohibited AI practices.

What are some examples of prohibited AI practices? 

AI systems that manipulate users, AI systems that exploit vulnerable populations, and AI systems that infringe on privacy. 

Are there other compliance requirements? Yes.

- Providers of General-Purpose AI Models must comply with transparency obligations

- Providers of High-Risk AI Systems must report serious AI System incidents 

How can businesses comply? 

Conduct AI risk assessments, Establish governance policies, Implement training programs, and Stay informed and foster ethical AI practices.

What are the consequences of non-compliance? 

Substantial fines. 

The EU AI Act's compliance timeline will continue to take effect on a rolling basis over the next several years.