EU AI Act Takes Effect August 1, 2024, Bans Social Scoring, Imposes 7% Penalties on Violations

Aug 4, 2024, 07:05 AM

The European Union's AI Act officially came into effect on August 1, 2024, marking a significant regulatory milestone for artificial intelligence in Europe. The legislation aims to ensure that AI systems are safe, ethical, and aligned with European values, thereby fostering trust among users. The Act imposes strict regulations on AI applications, particularly in recruitment, where it bans social scoring systems and emotional recognition technologies in educational and workplace settings. Additionally, the Act targets major U.S. tech companies, imposing penalties of up to 7% of global revenues for violations. The AI Act categorizes AI systems into four risk classes: Unacceptable, High, Minimal, and Systemic, to better manage the associated risks.