"The AI Act is a proposed European law on artificial intelligence. Though it has not yet taken effect, it’s the first such law on AI to be proposed by a major regulator anywhere, and it’s being studied in detail around the world because so many tech companies do extensive business in the EU.
The law assigns applications of AI to four risk categories, Powell said. First, there’s “minimal risk” – benign applications that don’t hurt people. Think AI-enabled video games or spam filters, for example, and understand that the EU proposal allows unlimited use of those applications.
Then there are “limited risk” systems such as chatbots, in which – the AI Act declares — the user must be made aware that they’re interacting with a machine. That would satisfy the EU’s goal that users decide for themselves whether to continue the interaction or step back.
“High risk” systems can cause real harm – and not only physical harm, as can happen in self-driving cars. These systems also can hurt employment prospects (by sorting resumes, for example, or by tracking productivity on a warehouse floor). They can deny credit or loans or the ability to cross an international border. And they can influence criminal-justice outcomes through AI-enhanced investigation and sentencing programs.
According to the EU, “any producer of this type of technology will have to give not just justifications for the technology and its potential harms, but also business justifications as to why the world needs this type of technology,” Powell said.
“This is the first time in history, as far as I know, that companies are held accountable to their products to this extent of having to explain the business logic of their code.”
Then there is the fourth level: “unacceptable risk.” And under the AI Act, all systems that pose a clear threat to the safety, livelihoods and rights of people will be banned, plain and simple.""
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