Breaking Down the EU AI Act
Written by: Juliana Cipolla

**Attorney Advertisement: Prior results do not guarantee future outcomes**

The landmark European Union Artificial Intelligence Act (“EU AI Act” or the “Act”) formally went into effect on August 1, 2024. As the first comprehensive regulation on AI by a major global regulator, the EU AI Act is poised to become a global standard for AI governance, much like how the EU General Data Protection Regulation (GDPR) set the benchmark for data protection. The Act categorizes AI applications into three risk levels: unacceptable risk, high risk, and low risk, establishing a structured framework for AI regulation.

Although none of the Act’s requirements are currently in force, they will be phased in over time. Passed back in March 2024, the EU AI Act classifies and regulates high-risk AI systems, while imposing lighter transparency obligations on limited risk AI systems, such as notifying consumers when they are using an AI system. The Act also designates certain AI systems as ‘prohibited,’ making a distinction between those systems and high-risk AI systems. Additionally, it includes provisions relating to “General Purpose AI” models, that, when trained with a large amount of data using self-supervision at scale, displays significant generality to competently perform a wide range of distinct tasks.

The majority of obligations fall on providers or developers of high-risk AI systems that intend to put such systems on the market or deploy such systems in the EU.

What are those next steps?

• Member states are to identify and publicly list the authorities / bodies responsible for fundamental rights protection and to notify the Commission and other Member States by November 2, 2024.
• Starting in 2025, the Act’s prohibitions on certain AI systems will take effect, alongside provisions relating to Notified Bodies, General Purpose AI models, Governance, Confidentiality, and Penalties.
• At 12 months from the effective date, the rules for the General Purpose AI will take effect for new General-Purpose AI models.
• At 24 months from the effective date, the rules for high-risk AI systems will take effect.
• At 36 months from the effective date, the rules for AI systems that are products or safety components of products regulated under EU laws, will apply.

What does this mean for your company?

The EU AI Act applies to multiple operators in the AI value chain, such as providers, deployers, importers, distributors, product manufacturers, and authorized importers. The EU AI Act also applies to providers and deployers outside of the EU if their AI systems, or the outputs of those systems, are used within the EU.

At The Beckage Firm, we have a team of seasoned attorneys and litigators that closely monitor updates to the EU AI Act, dedicating time to understand its implications for companies. We develop strategies to help clients operate in compliance with the upcoming obligations under the Act.