EU becomes the first to adopt AI Act to regulate AI.

The AI Act is a landmark regulation that aims to ensure that AI systems placed on the EU market are safe and respect fundamental rights.

The regulation will be based on a risk-based approach.
High-risk AI systems will be subject to a strict set of requirements.
Banned AI practices will be prohibited.
There will be a new governance architecture with an AI Office at the EU level.
Penalties for violations of the AI Act will be significant.
There will be measures in support of innovation.
Rules have been agreed for foundation models, large systems capable to competently perform a wide range of distinctive tasks, such as generating video, text, images, conversing in lateral language, computing, or generating computer code.
Following the new rules on GPAI models and the obvious need for their enforcement at EU level, an AI Office within the Commission is set up tasked to oversee these most advanced AI models, contribute to fostering standards and testing practices, and enforce the common rules in all member states.
A scientific panel of independent experts will advise the AI Office about GPAI models, by contributing to the development of methodologies for evaluating the capabilities of foundation models, advising on the designation and the emergence of high impact foundation models, and monitoring possible material safety risks related to foundation models.
The provisional agreement provides for a fundamental rights impact assessment before a high-risk AI system is put in the market by its deployers.
The AI Act will apply two years after its entry into force.

Industry's thoughts?

In FT:

"Cecilia Bonefeld-Dahl, director-general for DigitalEurope, which represents the continent’s technology sector, said: “We have a deal, but at what cost? We fully supported a risk-based approach based on the uses of AI, not the technology itself, but the last-minute attempt to regulate foundation models has turned this on its head."

"France’s Airbus and Germany’s Siemens, said the rules as constituted were too tough to nurture innovation and help local industries"

Access now has some interesting points:

https://www.accessnow.org/press-release/historic-vote-in-the-european-parliament-dangerous-ai-surveillance-banned-but-not-for-migrant-people-at-the-borders/

Information sources:

https://www.consilium.europa.eu/en/press/press-releases/2023/12/09/artificial-intelligence-act-council-and-parliament-strike-a-deal-on-the-first-worldwide-rules-for-ai/

https://www.ft.com/content/d5bec462-d948-4437-aab1-e6505031a303