European Union's AI Act: Overview from WilmerHale
The European Union's Artificial Intelligence Act (AI Act) marks a significant milestone as the world's first comprehensive horizontal legal framework for AI. Published on July 12, 2024, as "Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence," the AI Act is set to have a profound impact on a significant number of companies conducting business in the European Union.
The AI Act aims to establish EU-wide rules on data quality, transparency, human oversight, and accountability. It provides a guide for the definition and requirements for High-Risk AI Systems, Prohibited AI Practices, and the obligations for Deployers, Providers, Importers, and Distributors of such systems.
The guide also covers topics such as Innovation and Regulatory Sandboxes, Standards, Specifications, and Certificates, and Supervision and Enforcement. It offers a simplified presentation of the AI Act's requirements, focusing on the most relevant aspects for maintaining compliance.
One of the key challenges of the AI Act is its demanding requirements and significant extraterritorial effects. Affected actors may need to significantly redesign their products and services to comply with the AI Act. Non-AI companies will need to understand the technology and establish their own risk thresholds to effectively navigate compliance.
The AI Act has a phased implementation. The provisions related to Limited-Risk AI and Generative AI started applying since February 2, 2025, while the general applicability of the AI Act will begin on August 2, 2026. Fines for non-compliance can reach up to 35 million euros or 7% of global annual revenue (whichever is higher).
The guide discusses the concepts of Limited-Risk AI and Generative AI as defined by the AI Act. It also addresses the prohibited AI practices and the requirements for Standards, Specifications, and Certificates. The guide further delves into the Supervision and Enforcement aspects of the AI Act.
Innovation and Regulatory Sandboxes are also covered in the guide, providing a space for testing and experimenting with AI systems while ensuring compliance with the AI Act's guidelines.
The European Commission published the guide as part of its digital strategy policies, underscoring its commitment to shaping the future of AI in a manner that promotes innovation, ensures safety, and respects fundamental rights and values.
