EU’s new AI Act could add to compliance costs for Asean firms: industry players
Legislation is also likely to mark beginning of uneven regulatory approaches to technology that companies have to navigate
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UPCOMING legislation by the European Union (EU) to regulate artificial intelligence (AI) could spell new compliance requirements and costs for companies in South-east Asia, particularly those developing AI-powered services for the global market, industry players told The Business Times.
First proposed in April 2021, the EU AI Act classifies AI systems into four risk levels: unacceptable, high, limited and minimal or no risk, with different regulations at each level. Generative AI tools, such as ChatGPT, also have disclosure requirements (see table).
The European Parliament voted overwhelmingly to move forward with the AI Act in June. The new laws are expected to be approved as soon as end-2023, with implementation around 2025.
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