Europe is leading the race to regulate AI. Here's what you need to know | CNN Business

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The European Union took a major step Wednesday toward setting rules — the first in the world — on how companies can use artificial intelligence

It’s a bold move that Brussels hopes will pave the way for global standards for a technology used in everything from chatbots such as OpenAI’s ChatGPT to surgical procedures and fraud detection at banks. “We have made history today,” Brando Benifei, a member of the European Parliament working on the EU AI Act, told journalists. Lawmakers have agreed a draft version of the Act, which will now be negotiated with the Council of the European Union and EU member states before becoming law.

sets fines of up to €10 million , or up to 2% of a firm’s global turnover. Fines under the AI Act serve as a “war cry from the legislators to say, ‘take this seriously’,” Muldoon said. Protections for innovation At the same time, penalties would be “proportionate” and consider the market position of small-scale providers, suggesting there could be some leniency for start-ups.

 

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