Introduction: Why AI and regulation go hand in hand
With the growing impact of artificial intelligence (AI), the European Commission introduced the AI European Act , an innovative legislation that changes the way companies implement AI. In addition to technical and ethical requirements, the law also emphasizes the importance of AI literacy – the ability of employees to understand and effectively use AI technology. This article discusses how the AI Act forces companies to promote AI literacy and what responsibilities companies have within the law's different risk categories.
Section 1: What is the AI European Act and why is AI Literacy important?
The AI European Act provides a comprehensive regulatory framework that classifies AI systems based on their risk level and imposes specific requirements on companies. At the same time, the law emphasizes that companies must invest in AI literacy, not only to comply with regulations, but also to enable their employees to use AI ethically and effectively.
The levels of risk in the AI Act:
- Banned AI systems:some text
- Applications such as social scoring and manipulative techniques are completely prohibited.
- These systems are considered to pose an unacceptable risk due to their potential to violate fundamental rights.
- High-risk AI systems:some text
- Examples: AI systems in law enforcement, medical devices, and education.
- Obligations: Extensive technical documentation, risk assessments and transparency requirements.
- Companies must train employees in the use and management of these systems to ensure compliance.
- Limited-risk AI systems:some text
- Examples: Chatbots and algorithms that make recommendations to users.
- Obligations: Transparency, such as informing users that they are dealing with an AI system.
- Minimal risk AI systems:some text
- Examples: Spam filters and automatic translation programs.
- These systems require minimal regulation and have only basic requirements such as preventing harmful outputs.
Section 2: The Role of AI Literacy in Compliance
The AI European Act obliges companies to implement AI not only technically correctly, but also ethically. This requires employees to understand AI, both in terms of uses and risks. Without AI literacy, companies can:
- Making mistakes in risk assessments.
- Failure to meet transparency requirements.
- Being at risk of heavy fines for non-compliance.
Synthwave Solutions and AI Literacy
Synthwave Solutions offers training that teaches employees:
- How they use AI systems correctly, with a focus on compliance.
- Recognizing ethical dilemmas and managing risks.
- Effectively integrate AI technologies into existing processes.
Section 3: Business requirements within the risk scales
High-risk AI: What does it mean for businesses?
Companies using high-risk AI have obligations such as:
- Technical documentation: This should cover the full life cycle of the system, including risk analysis and incident reporting.
- Fundamental rights protection: Companies must ensure that these systems do not cause discrimination or violate individual rights.
- Human supervision: Employers should ensure that employees are trained to evaluate decisions made by AI systems.
Limited and minimal risk AI:
Although these categories have less stringent requirements, it remains important that companies:
- Ensuring transparency, for example by informing users about the interaction with an AI system.
- Ensure safe and ethical implementation.
Section 4: Benefits of Compliance
In addition to avoiding fines and reputational damage, compliance with the AI European Act offers important benefits:
- Innovation incentive: Regulatory sandboxes make it possible to test new AI technologies without full compliance requirements.
- Customer trust: Transparency and security standards increase customer confidence in AI products and services.
- Competitive advantage: Companies with strong AI literacy and compliance are better prepared for future regulations and market demands.
Conclusion: Build AI Literacy and prepare your business
The AI European Act not only emphasizes the importance of regulation, but also of AI literacy within organizations. Companies that invest in training their employees and comply with risk-based requirements will benefit from improved competitiveness and innovation.
Are you ready to transform your business with AI? Synthwave Solutions offers training and consultancy to make your team AI-ready and ensure compliance with the AI Act. Contact us today!
Source:
[2]: Full text + PDF - EU Artificial Intelligence Act [3]: A Practical Organizational Framework for AI Accountability [4]: Regulation - EU - 2024/1689 - EN - EUR-Lex [5]: https://iapp .org/resources/article/top-impacts-eu-ai-act-regulatory-implementation-application/ [6]: https://www.pillsburylaw.com/en/news-and-insights/eu-ai-act.html [7]: https://www.gisreportsonline.com/r/ai-act-eu-regulation-innovation / [8]: https://www.iese.edu/insight/articles/artificial-intelligence-europe-innovation-regulation/ [9]: https://www.cidob.org/en/publications/european-ai-regulation-opportunities-risks-and-future-scenarios-metropolitan
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