European politicians in key committees have approved new regulations on AI, marking a major step towards what could become the world’s first legislation addressing AI technology. The legislation, known as the AI Act, received overwhelming support from the civil liberties and consumer protection committees of the European Parliament. The proposed rules aim to ensure that AI applications adhere to the protection of fundamental rights, with a legislative assembly vote scheduled for April.

Eva Maydell, the MEP for Tech, Innovation and Industry, called the approval on Tuesday a “result we can be proud of.” She emphasized that the legislation encourages public trust in AI while allowing companies the flexibility to innovate and create.

What is the AI Act?

The AI Act is designed to establish boundaries for the use of AI across various sectors, including banking, automotive, electronics, aviation, and security and police applications. Simultaneously, the legislation seeks to foster innovation and position Europe as a leader in the AI field, as stated in a parliament release. However, concerns have been raised about potential impediments to AI innovation in the EU, potentially giving a competitive edge to the U.S. and China.

The EU is among the first global blocs to establish comprehensive AI regulations, in contrast to the G7 and OECD, which have struggled to reach a consensus.

This legislative initiative is considered a global benchmark for governments seeking to harness the benefits of AI while mitigating potential risks, such as disinformation, job displacement, and copyright infringement. 

The European Commission proposed the legislation in 2021, facing delays due to disagreements over the regulation of language models accessing online data and AI usage by law enforcement and intelligence agencies.

The AI Act extends its regulatory scope to cover foundation models or generative AI, exemplified by projects like Microsoft-backed OpenAI. These AI systems are trained on extensive datasets and possess the capability to learn from new data to execute diverse tasks.

The legislative development reflects a growing awareness of the need to balance the advancement of AI with safeguarding fundamental rights and addressing potential societal concerns. If enacted, the AI Act could serve as a foundational model for other nations navigating the complex landscape of AI regulation.

“We are inviting businesses and experts to tell us about any competition issues that they may perceive in these industries, whilst also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics,” Margrethe Vestager, Executive Vice-President in charge of competition policy for the EU, said in an official statement at the time. “The European Commission is checking whether Microsoft’s investment in OpenAI might be reviewable under the EU Merger Regulation.”