The European Union’s impending AI Act has sparked a flurry of activity among tech companies, as the leaked text of the Act sets a brisk pace for compliance. With the formal adoption process expected to commence on February 2nd and a potential final adoption in May, companies are facing a race against time. This situation is further complicated by the upcoming European Parliament elections in June, which add an extra layer of urgency to the proceedings.

According to Kirsten Rulf from Boston Consulting Group, organizations, especially those dealing with general-purpose AI, such as foundation models and generative AI applications, might have as little as six months to align their operations with the new regulations. These ambitious timelines are particularly challenging given that many European companies are still in the process of understanding what responsible AI entails for them.

AI Act: A Tight Timetable for Compliance

The AI Act introduces a pyramid categorization for AI systems, as explained by Tanguy Van Overstraeten of Linklaters. Under this structure, different types of AI applications will face staggered deadlines for compliance. The most immediate deadline will be for prohibited AI uses, such as certain biometric categorization systems, with a compliance window of just six months post-enactment.

  • Prohibited AI uses to face the earliest compliance deadline of six months.
  • General-purpose AI, including generative models, must adhere to broader criteria.
  • High-risk AI systems have longer compliance periods, up to three years for embedded systems.

The Act also specifies stringent requirements for general-purpose AI models. These include conducting model evaluations, assessing and mitigating systemic risks, and ensuring cybersecurity. Moreover, these models will need to report on energy efficiency and serious incidents to the European Commission.

EU’s Strategic Support for AI Startups

In a related move, the European Commission has launched the AI Factories program. Its goal is to help AI startups and researchers by giving them access to important tools, like AI-focused supercomputers. This program is a piece of the EU’s larger plan to push tech innovation and be a strong competitor in global AI. Thierry Breton, the EU’s industry head, stressed how crucial AI Factories are. 

They put together all the key parts needed for developing AI: computer power; data; algorithms, and skilled people. This step shows that the EU is serious about not just setting rules for AI but also promoting its ethical and smart growth.

Regulatory Challenges and Innovation

The AI Act is important for creating ethical AI rules, but it’s been met with some criticism. Yann LeCun from Meta has expressed concerns that the Act might hold back research and progress. LeCun believes that controlling basic AI models is the same as limiting core research activities, which could slow down new advancements. 

To tackle these worries, the EU has come up with ‘regulatory sandboxes.’ These special zones let AI creators test and improve their work in a safe space. This helps them to follow the Act’s rules while still pushing the boundaries of innovation. 

Another key part of the AI Act covers how law enforcement uses AI, focusing on facial recognition. The Act lays down tough rules for when and how facial recognition can be used in real time in public spaces. Law enforcement agencies will be required to perform fundamental rights impact assessments and obtain judicial authorization for such technologies, balancing public safety needs with individual privacy rights.

Exceptions to these rules are tightly constrained, permitted only in specific, high-stakes situations like locating missing people or preventing terrorist attacks. This nuanced approach reflects the EU’s commitment to respecting fundamental rights while acknowledging the utility of AI in critical law enforcement scenarios.


Europe is taking an active and complex approach towards AI rules and backing. With the new AI Act around the corner, companies have to quickly get in line with moral AI norms. At the same time, projects like the AI Factories are pushing for inventiveness and helping Europe stay ahead in the AI game. As this law gets ready to kick in, companies and AI pros should gear up for a world where AI is not just smart but also plays by the rules, finding the sweet spot between sticking to regulations and moving tech forward.

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