As AI regulations are set to take effect around the turn of the year, companies must be proactive in identifying any AI applications they use and determining if they fall under regulation, according to Alexandra Ciarnau and Axel Anderl from Vienna law firm Dorda. Failure to comply with prohibited AI uses can result in penalties that will be enforced later this year or early next year. Companies should appoint AI Managers and ensure that there is appropriate expertise within the organization to handle AI projects.
It is essential for companies planning AI projects to consider the European legal framework, which requires them to assess the users of AI tools and the risks they may pose to employees, customers, or external parties. Emotion recognition in the workplace is a prohibited use of AI that comes with strict regulations, while high-risk applications like those in education or human resources management require additional obligations such as risk assessments.
Most domestic companies are expected to fall within the lower risk categories of the EU’s approach to AI regulation. Transparency rules dictate that AI-generated content be labeled, and users must be informed when interacting with it. The biggest risk for companies lies in potential fines for non-compliance, which can reach millions of euros. Companies that purchase third-party AI systems are also responsible for ensuring compliance and mitigating risks.
In case of damages, companies can seek recourse against manufacturers; however, enforcement against foreign manufacturers may be challenging, particularly those from countries like the US or China. European manufacturers have a better understanding of regulations and enforcing compliance is easier. Providers of AI systems themselves must disclose basic functions and training data; details will likely be determined by court decisions. Complying with European regulations is crucial for all stakeholders in the AI ecosystem.
Overall, it is crucial for companies to take a proactive approach to identifying any potential risks associated with their use of artificial intelligence and complying with relevant regulations before penalties are imposed later this year or early next year.
To mitigate these risks, companies need to identify any potential risks associated with their use of artificial intelligence (AI) technology before penalties are imposed later this year or early next year.
In conclusion, it is imperative for companies operating within Europe’s legal framework to assess their use of AI tools and determine if they fall under regulation before facing penalties later this year or early next year.
Alexandra Ciarnau and Axel Anderl advise that companies should appoint an expert on artificial intelligence (AI) management within their organization before implementing any new projects involving this technology.
As such, it is important for businesses operating in Europe’s legal framework to understand how their use of artificial intelligence could potentially affect employees or customers before facing consequences later this year or early next year.
Companies must also ensure that they comply with transparency rules surrounding labeling any content generated by artificial intelligence (AI) so that users are aware when interacting with these technologies.
Finally, Alexandra Ciarnau recommends that businesses should seek legal advice on how best to navigate regulatory compliance requirements related to artificial intelligence (AI) technology before making significant investments in these technologies.
