EU's AI Act: Impact on Europe's SMEs and the Global Race to Tackle AI Harms

The EU's AI Act, a key piece of legislation to regulate artificial intelligence, is in the final phase of the legislative process. The act aims to put "guardrails" around the development and use of AI technology. However, there are mixed opinions on its impact. While some believe it will increase trust and data safety for businesses, others are concerned about the potential increase in costs and obligations for SMEs. There are also unresolved legal questions regarding liability and compliance, which could hinder the adoption of AI. The act proposes a tiered approach and self-regulation for foundation models, but disagreements among EU member states may delay its implementation.