On March 13, 2024, the European Parliament approved the much-anticipated EU Artificial Intelligence Act (‘AI Act’).

The AI Act is billed as the first comprehensive legal framework worldwide that specifically regulates AI systems. It will impose obligations on both private and public sector actors which develop, import, distribute, or use in-scope AI systems. Like the EU General Data Protection Regulation (GDPR) before it, the AI Act has explicit extra-territorial effect, which means that – under certain conditions – even companies without a physical presence in the EU may be subject to the AI Act.

The AI Act is projected to enter into force in the second quarter of 2024. Before it can do so, the text will be subjected to legal-linguistic checks to finalize the precise wording. It will also need to be formally adopted by the European Council – although it is anticipated that there will be few obstacles to such adoption.

Following entry into force, the rules of the AI Act will become applicable in a phased manner. For example, the prohibition on certain AI systems that are considered to pose ‘unacceptable risk’ will be effective after 6 months, whilst compliance requirements in connection with ‘high-risk’ AI systems will apply 24, and in some cases 36 months after entry into force.

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