A look at what's in the EU's newly proposed regulation on AI

On April 21, 2021, the European Commission unveiled its long-awaited proposal for a regulation laying down harmonized rules on artificial intelligence and amending certain union legislative acts. The proposal is the result of several years of preparatory work by the commission and its advisers, including the publication of a "White Paper on Artificial Intelligence." The proposal is a key piece in the commission's ambitious European Strategy for data. The regulation applies to (1) providers that place on the market or put into service AI systems, irrespective of whether those providers are established in the European Union or in a third country; (2) users of AI systems in the EU; and (3) providers and users of AI systems that are located in a third country where the output produced by the system is used in the EU. The term "AI system" is broadly defined as "software that is developed with one or more of the techniques and approaches listed in Annex I and can, for a given set of human-defined objectives, generate outputs such as content, predictions, recommendations, or decisions influencing environments they interact with." The commission takes a risk-based but overall cautious approach to AI and recognizes the potential of AI and the many benefits it presents, but at the same time is keenly aware of the dangers these new technologies present to the European values and fundamental rights and principles.