The Challenges and Impact of the EU's AI Act on Global AI Regulation

The passage of the EU AI Act was a challenging process due to contentious issues surrounding facial recognition and powerful "foundation" models. Policymakers had to adapt the legislation to address rapidly evolving AI technology, including general-purpose systems like OpenAI's ChatGPT. France, Germany, and Italy sought compromises to protect innovation and startups developing foundational AI models, while other EU lawmakers pushed for tighter regulations. Delays and disagreements also arose over the ban on facial recognition systems and the use of AI-assisted surveillance. The final agreement subjects General Purpose AI Systems (GPAIs) to a two-tier system, allowing some flexibility for companies, and includes exceptions for limited use of facial recognition under certain conditions. The full text of the AI Act is not yet available, and the legislation is expected to become law by mid-2024, with provisions gradually coming into force over the next two years.