Companies Assess Compliance as EU’s AI Act Takes Effect

PYMNTS.com August 1, 2024

The European Union’s AI Act came into force Thursday (Aug. 1), establishing the world’s first comprehensive regulatory framework for artificial intelligence and setting new compliance standards for businesses worldwide.

The EU adopted the rules earlier this year after negotiations that gained urgency following the 2022 debut of ChatGPT. The chatbot’s capabilities highlighted the potential and risks of generative AI systems, which can produce human-like text, images and other content.

The new law classifies various types of AI based on risk and imposes different requirements and obligations on “limited risk” and “high risk” AI systems.

Shaun Hurst of Smarsh, a digital communications compliance firm, emphasized new requirements for banks using high-risk AI technologies in a statement sent to PYMNTS.

“Banks utilizing...

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