The Artificial Intelligence Act officially came into force on 1 August 2024. The Act, one of the first of its kind, establishes a common regulatory and legal framework for AI within the European Union. How will it impact the financial sector?
According to Susie Mackenzie, head of legal analysis at Corlytics, regulating AI represents a challenge to regulators as they seek to balance encouraging innovation with managing its risks.
She said, “The EU Act is an important milestone in the global regulatory framework as it is the first attempt to introduce a comprehensive AI law. With its focus on protecting health, safety and fundamental rights, it seeks to ban a limited set of harmful uses of AI and ensure that the most potentially harmful AI applications are subject to the strictest regulations.”
Despite this, Mackenzie outlined that it ‘remains to be seen’ whether the EU AI Act will have the same global impact as previous EU legislative initiatives such as the GDPR – what she calls the ‘Brussels-effect’ whereby its influence extends far beyond the borders of the EU zone.
Read the full article by FinTech Global here.
