EU's New AI Rules: What You Need to Know

31/05/2024

On Wednesday, 13 March 2024, MEPs gave approval for the landmark EU AI Act setting unprecedented rules for Artificial Intelligence. What does this groundbreaking act mean for you? 🛡️

For businesses in Ireland, the EU AI Act will have significant implications, especially if your business operates within the EU or deals with EU citizens' data. The act is anchored in the classification of AI systems according to their perceived level of risk:

  • Unacceptable risk ➡️ banned outright
  • High risk ➡️ stringent compliance requirements
  • Limited risk ➡️ specific transparency obligations
  • Minimal risk ➡️ most AI applications, minimal requirements

This risk-based approach aims to protect people's health, safety, and fundamental rights, while simultaneously promoting the adoption of trustworthy, human-centric AI. The Act also aims to stimulate investment and innovation in AI with a key objective to ensure that the EU remains competitive.

The obligations under the Act will be phased in over a period of 36 months, with the key obligations in place within 24 months.

Attached is the TL;DR of the Act which provides real examples of these risks.

⚠️ EU AI Act impacts more than just tech companies!

Any AI application that influences hiring decisions, staff supervision, or promotions falls under the regulations. Be aware of your role within the AI ecosystem and be mindful of the potential risks associated with misuse, which could pose significant threats ⬇️ to your organisation

The consequences of non-compliance with the EU AI Act are severe, using % of total global turnover in the preceding financial year, or a fixed amount, whichever is higher.

Penalties:

  • Up to 7% global turnover or €35 million for breaches of prohibitions (Article 5)
  • Up to 3% global turnover or €15 million for most other violations.
  • Up to 1.5% global turnover or €7.5 million for providing inaccurate information.

While the EU AI Act sets out rigorous standards and compliance requirements for businesses, it also paves the way for innovation within a framework of trust and safety. Other countries have also taken steps to regulate artificial intelligence, but the EU is leading the way. Balancing the need for safety versus innovation is demonstrated by the comparison between the EU and UK approach.


The UK prefers a lighter touch. Its more flexible, adaptable, encouraging innovation.

The two approaches have been met with mixed reactions. Some argue the EU's approach is too stifling, while others say the UK's is too vague. It remains to be seen which approach will be more effective in the long run. Personally, I believe the EU has taken a huge step forward and provides clear guidelines with stronger consumer protection.

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