EU's 'AI Law' to come into force on August 1, 2024, with fines for violations of up to 7% of annual turnover or 35 million euros

The final full text of the EU's Artificial Intelligence (AI) Act, enacted in May 2024, has been published in the Official Official Journal. Since the new law will come into force 20 days after publication, it has been confirmed that the AI Act will come into force on August 1, 2024. The full application of all provisions will begin in 2026, although some provisions will come into force much earlier.

REGULATION (EU) 2024/1689 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

EU's AI Act gets published in bloc's Official Journal, starting clock on legal deadlines | TechCrunch

The AI Act compliance countdown begins - The Verge
https://www.theverge.com/2024/7/12/24197058/eu-ai-act-regulations-bans-deadline

The EU's 'AI Law' imposes various obligations on AI developers depending on the use case and perceived risk. Most AI use cases are considered low risk and will not be subject to specific restrictions, but the use of 'social credit rankings,' the collection and compilation of facial recognition information for databases, and the use of real-time emotion recognition systems in schools and workplaces will be prohibited six months after the law comes into force.

Nine months later, the EU AI Secretariat, established by the European Commission, and consulting firms will begin developing a code of conduct for AI developers.

Starting in August 2025, one year after the law comes into force, makers of general-purpose AI models such as ChatGPT will have to demonstrate that their models comply with new transparency requirements, are safe, and are easily explainable to users.

By August 2026, the AI Law rules will apply to all companies operating in the EU, although developers of high-risk AI systems, such as those used in infrastructure, employment, mission-critical services like banking and healthcare, and applications integrated into the justice system, will be given until August 2027 to comply with risk assessment and oversight rules.

If companies fail to comply with the AI law, they will be fined a percentage of their total turnover or a fixed amount, with the maximum being 7% of their annual global turnover or 35 million euros (approximately 50 million yen).

In accordance with the principle of 'supporting innovation,' the AI Act stipulates that AI systems and models that have been specifically developed and put into practical use solely for the purpose of scientific research must be excluded from its scope. It also stipulates that the Act must not affect research and development of AI systems and models prior to their commercialization or practical use.