EU's AI Act to Enter into Force on August 1, Bringing Comprehensive Regulation to Artificial Intelligence
The European Union's AI Act will come into effect on August 1, aiming to make the operation of artificial intelligence more understandable and transparent for operators, while raising various questions and concerns.
30.07.2024 | Hungarian competition authority
Starting from August 1, the EU's AI Act will gradually regulate artificial intelligence, becoming mandatory from mid-2026. The regulation seeks to enhance the transparency of AI operations for operators, but it also raises several additional issues.
The AI Act categorizes AI systems based on risk levels, obliging developers, manufacturers, and operators to comply with regulatory frameworks and implement required security measures. The complexity of the regulation is evident from its 180-paragraph preamble.
The rapid proliferation of AI technology poses challenges to fair market competition, as only major tech giants currently possess the substantial resources and technological expertise needed for AI development, potentially leading to market distortions in digital sectors.
Furthermore, AI technology could expose consumers to risks in terms of data collection, personalized advertising, and the application of dark patterns, such as chatbots that may not transparently disclose whether responses are based on AI or paid promotions.