AI Regulation Gains Momentum as EU Sets Global Benchmark for Tech Accountability

Baasma Wafa  Jadetimes Staff

B. Wafa is a Jadetimes news reporter covering Europe

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Image Source : CFOtech UK

The European Union has made a significant move toward global tech regulation with the official approval of the AI Act, the world's first full-fledged law governing artificial intelligence. The law, voted upon by the European Parliament in April and now making its way into implementation, provides a model for the world in how governments can make AI developers and users answerable.

The regulations classify AI systems by risk level—ranging from low to unacceptable—and include stringent conditions for high-risk applications, including facial recognition, biometric mass surveillance, and recruitment or credit scoring systems.

"Europe is demonstrating that innovation and ethics can go together," stated Margrethe Vestager, the EU Commissioner for Digital Competition. "This law makes sure AI serves people, not against them."

European Technology companies, such as large American players, will be required to abide by provisions for transparency, data quality, and oversight, or risk a fine of up to 7% of world-wide annual revenues.

Critics contend that the law has the potential to kill innovation, but proponents respond that it's a necessary move to avoid damage and safeguard civil rights in the era of autonomous systems. The rule is expected to have implications for legislation across other large markets, such as the United States and Asia.

Industry players have already started adjusting, with a number of technology companies introducing AI ethics workforces and investing in risk assessment solutions to address the new compliance requirements.

The AI Act will be rolled out step by step, with full enforcement by mid-2026.