Europe has taken a leap towards becoming the world's first major power to implement comprehensive regulations governing the use of artificial intelligence (AI). After nearly 15 hours of intense negotiations, European Union (EU) countries and members of the European Parliament reached a provisional deal on Friday, marking a milestone in the global discourse on AI governance. The deal covers various aspects, including the use of AI by governments in biometric surveillance and the regulation of advanced AI systems like ChatGPT.
European Commissioner Thierry Breton, expressing the gravity of the moment, stated at a press conference, "Europe has positioned itself as a pioneer, understanding the importance of its role as a global standard setter. This is, yes, I believe, a historical day."

The agreement places obligations on foundational models such as ChatGPT and general-purpose AI systems (GPAI) before they can enter the market. Transparency is a key focus, requiring technical documentation, compliance with EU copyright laws, and the dissemination of detailed training content summaries. High-impact foundational models with systemic risk face additional responsibilities, including model evaluations, systemic risk assessment and mitigation, adversarial testing, reporting to the European Commission on serious incidents, ensuring cybersecurity, and disclosing energy efficiency information.
Governments now have guidelines for the use of real-time biometric surveillance in public spaces. This is limited to cases involving victims of specific crimes, the prevention of genuine threats, such as terrorist attacks, and searches for individuals suspected of the most serious offences. The agreement also prohibits cognitive behavioural manipulation, untargeted scraping of facial images from the internet or CCTV footage, social scoring, and biometric categorization systems that infer sensitive personal information like political beliefs, religion, philosophy, sexual orientation, and race.
Consumers are granted the right to launch complaints and receive meaningful explanations. Violations of these regulations could result in fines ranging from 7.5 million euros ($8.1 million) or 1.5% of turnover to 35 million Euros or 7% of global turnover.
However, not everyone is applauding the new regulations. Business group DigitalEurope criticized the rules, arguing that they add another layer of burden for companies, especially considering recent legislative developments. Director General Cecilia Bonefeld-Dahl expressed concerns, stating, "We have a deal, but at what cost? We fully supported a risk-based approach based on the uses of AI, not the technology itself, but the last-minute attempt to regulate foundation models has turned this on its head."
Privacy rights group European Digital Rights also voiced criticism, particularly regarding the legalization of live public facial recognition across the EU. Senior Policy Advisor Ella Jakubowska noted, "It's hard to be excited about a law which has, for the first time in the EU, taken steps to legalize live public facial recognition across the bloc. While the Parliament fought hard to limit the damage, the overall package on biometric surveillance and profiling is at best lukewarm."
The legislation is expected to enter into force early next year after formal ratification from both sides, with enforcement anticipated two years after that. As governments worldwide grapple with finding the right balance between harnessing the benefits of AI technology and implementing necessary safeguards, Europe's ambitious AI rules could become a blueprint for other nations. This approach stands in stark contrast to the United States' light-touch regulation and China's interim rules.
*Inputs from Reuters*
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