The European Union (EU) is getting closer to settling disputed matters so that an agreement can be reached on the AI Act, which will probably be one of the most extensive laws governing the use and sale of AI.
For the third day in a row, negotiations to settle the contentious points in the law are still ongoing between the European Parliament, the European Commission, and 27 member states of the European Union.
It is critical that legislators move quickly to regulate AI in light of the growing usage of generative AI. The goal of EU policymakers is to approve the bill in time for the June 2024 EU parliamentary elections. 
One of the first areas to begin developing legislation for AI technology in 2021 was the EU. According to a statement from the EU Parliament, “it aims to ensure AI protects fundamental rights, democracy, the rule of law, and environmental sustainability while boosting innovation and making Europe a leader in the field.”
resolving important problems
AI systems are classified into four danger categories under the EU AI Act: low, limited, high, and unacceptable risk. According to the Reuters story, free and open source AI licenses are probably going to be excluded from regulation unless they fall into the high-risk category.
The suppliers of general purpose AI systems (GPAIS) will have to provide comprehensive descriptions of the training material, and the European Commission will keep a list of AI models that represent a “systemic risk.”
At first, France, Germany, and Italy opposed this because they were eager to see a self-regulation model for GPAIS. According to the Reuters story, they believed that severe rules would limit European businesses’ capacity to compete with businesses from other areas.
The use of AI systems by law enforcement organizations for biometric identification of people in publicly accessible locations is another controversial topic among EU politicians.
According to a Bloomberg article, EU member states are eager to create a framework that would enable them to utilize AI-based systems for security reasons, even if the EU Parliament supported a total prohibition to safeguard citizens’ basic rights.
Risks versus growth
Legislators are finding it difficult to strike a balance between safeguarding people from the many threats connected with technology and using AI systems to promote social and economic advancement.
Prominent entrepreneur Elon Musk, the creator of SpaceX and Tesla, is among the AI practitioners who have expressed worry on many occasions in the recent past that AI represents one of the “biggest threats” to mankind.
The General Data Protection Regulation (GDPR), which was created by the EU in the past, established a precedent and served as a model for other nations drafting laws to guard against the improper use of personal data belonging to their residents.
Tejasvi Addagada, senior vice president and head of enterprise data management at HDFC Bank, stated that “the EU AI Act would have implications for the innovation and competitiveness of the EU in the field of AI, as well as for the protection of fundamental rights and values of the EU citizens and residents.” “It could improve the social acceptance and uptake of AI solutions by fostering trust, legal certainty, and ethical standards for the development and use of AI.”
However, Addagada asserts that the EU AI Act may place new expenses, liabilities, and obstacles on AI providers and consumers, which would impede innovation and the EU’s ability to compete in the global AI market.
The AI Act has drawn criticism from organizations including Digital Europe. The European Digital SME Alliance has expressed worry that the implementation of self-regulation may place an excessive burden on Small and Medium Enterprises by placing the onus of confirmation on the firms.
It will take two years for the AI Act to take effect, even if the members can settle the difficult concerns and the EU Parliament votes in favor of it during this session.
