Unlock the Editor’s Digest for free: EU lawmakers agree on landmark legislation to regulate artificial intelligence

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favorite stories in this weekly newsletter. EU lawmakers have agreed on landmark legislation to regulate artificial intelligence, enacting the world’s most restrictive regime on the development of the technology.

Thierry Breton, EU commissioner, confirmed the historic agreement, making the EU the first continent to set clear rules for the use of AI. The AI Act is seen as a launch pad for EU start-ups and researchers to lead the global AI race.

The deal followed years of discussions among member states and members of the European parliament on how AI should be regulated to prioritize humanity’s interests. The legislation includes transparency requirements for all general-purpose AI models and stronger requirements for powerful models with systemic impacts across the EU.

Strict restrictions on the use of facial recognition technology, bans on social scoring, and manipulating human behavior to circumvent free will are also included in the legislation. Companies that fail to comply with the rules face fines of €35mn or 7% of global revenue.

While some tech groups expressed concerns about the new rules, Ursula von der Leyen, the president of the European Commission, praised legislators for the political agreement on the AI rules, calling it a historic moment that transposes European values to a new era.

The legislation aims to support businesses and developers in anticipating the new rules, with around 100 companies already expressing interest in joining the AI Pact to implement key obligations of the Act ahead of the legal deadline.